AP/ Trade Deficit Is 2nd Highest Ever
The Commerce Department reported Monday that the deficit in the current account rose to $218.4 billion in the April-June quarter, an increase of 2.4 percent over the deficit in the first three months of the year.
The deficits through the first six months of this year put the country on track for a fifth consecutive annual deficit, surpassing last year's mark of $791.5 billion. The record high for a single quarter was a $223.1 billion imbalance in the October-December period last year.
So far, foreigners have been happy to hold dollars in payment for American purchases of cars, televisions and foreign oil. But the concern is what would happen should foreigners at some point decide they want to hold less in dollar-denominated assets.
A rush for the exits by foreigners could send U.S. stock prices and the value of the dollar plunging and send American interest rates sharply higher
The deficits through the first six months of this year put the country on track for a fifth consecutive annual deficit, surpassing last year's mark of $791.5 billion. The record high for a single quarter was a $223.1 billion imbalance in the October-December period last year.
So far, foreigners have been happy to hold dollars in payment for American purchases of cars, televisions and foreign oil. But the concern is what would happen should foreigners at some point decide they want to hold less in dollar-denominated assets.
A rush for the exits by foreigners could send U.S. stock prices and the value of the dollar plunging and send American interest rates sharply higher
posted by Blue @ 9:00 AM
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