Wednesday, December 14, 2005

Mortgage The Future, Hock The Present

Trade gap widens to record $68.9 billion
Wed Dec 14, 2005 8:45 AM ET

WASHINGTON (Reuters) - The U.S. trade deficit widened unexpectedly in October to a record $68.9 billion despite a drop in the cost of imported oil, as the deficits with China, Canada, the European Union, Mexico and OPEC all hit records, government data showed on Wednesday.

Economists had expected the trade gap to shrink in October to $63.0 billion, and the surprising growth in the imbalance suggests fourth-quarter economic growth will likely be even weaker than first thought.

The Commerce Department said the deficit widened 4.4 percent from September after growing 11.9 percent the previous month.


The politically sensitive trade deficit with China widened 2.1 percent to a record $20.5 billion as imports from that country rose 4.8 percent to $24.4 billion.
I wonder when they'll start calling in their chits? I haven't seen any indication that they are preparing to, like a military buildup, but China is such a closed-end proposition, it's likely they are preparing and we can't even see it for Iraq.