Wednesday, May 12, 2004

Why is this stuff surprising to anyone? If they only knew the General's prophecy has been fulfilled!
The trade deficit swelled to an all-time high of $46 billion in March as a stronger U.S. economy stoked Americans' appetite for foreign-made cars, TVs and other goods. . . .

The trade gap reported by the Commerce Department on Wednesday was 9.1 percent bigger than the $42.1 billion deficit posted in February.
Back in April I did a little math off the 2004:I GDP figures and estimated a March trade deficit of $44.5bn, which would have been a new record in itself. The actual March figure of $46.0bn simply smashes the old record dating all the way back to January.

So far the trade deficit for 2004 is outpacing 2003 by over 8%, and outpacing 2002 by an incredible 31.5%.

Quarter over quarter, imports are up 4.0% (or if you prefer the 'annualized' data, 16.1%) while exports are up by just 2.5% (10.2%).

And the current account deficit as a percentage of GDP continues to swell . . .

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