U.S. Trade Deficit Sets Record

The United States trade deficit widened to a record $726 billion in 2005 Hitting its fourth consecutive annual record the gap between exports and imports reached almost twice the level of 2001 The nation last had a trade surplus, of $12.4 billion, in 1975 That means the nation will go deeper into debt China, Japan and other foreign governments are some of the biggest holders of government securities lending money to cover the substantial federal budget deficit and helping to keep interest rates and home mortgage costs here relatively low As a result, American consumers are able to spend more and save less "There are certainly going to be inflows, the question is at what price?" As long as foreigners are willing to put their capital in the United States "It would be better that we saved more on our own," "If you believe in free trade, you play by the rules," "we can expect to see worse numbers to come."