Trade deficits, Current Accounts, and Budget Deficits

From: Brablo (gestureofrespect_at_yahoo.com)
Date: 03/25/05 

Date: 24 Mar 2005 17:12:09 -0800

Hello all Economists!

Our latest current account deficit is about $666 Billion for '04. I
realize that everyone, including myself, was startled and wary about
this statistic.

However, according to one study book I'm reading (Schweser Study
Program for the CFA '04), it states that "There is no negative
interpretation associated with running a current account deficit.
Unlike an individual or institution running a budget deficit, a current
account deficit simply means that a country imports more than it
exports. If offset by a surplus in the capital accounts, a deficit in
the current account can continute for a long period with no apparent
problem."

So relax. There was no reason to be startled.

Here are some questions that I have:
1. What are the differences between the trade deficit/surplus and the
current account? What were the figures for each of these last year?
Correct me if I'm wrong, but I think that the trade deficit was $666B
for '04.
2. What was our budget deficit for last year?

Relevant Pages

  • Re: Turbo Delphi Upgrade
    ... That's not a deficit. ... the merchandise trade deficit, often unwittingly. ... which is the difference of the US imports of goods and services from abroad less the exports of goods and services to other countries is a major component of the US current account deficit. ...
    (borland.public.delphi.non-technical)
  • Re: Democrats destroying America ...
    ... You claimed "the US government's budget deficit is actually rapidly falling" and then again "The annual budget deficit is rapidly falling". ... My response observed that a) the OMB deficit figures up through last year *did not support that assertion at all*, b) the OMB *projection* last year was that the next year's deficit would again exceed $400 billion, and c) that this projection just one year ago was so far out of line with the alleged actual 2006 deficit that either someone was playing fast and loose with the 2006 numbers or there was little reason to expect this year's future projections to be any more reliable than last year's projection was. ... You bloviated "The budget deficit as a percentage of GDP is not a major concern" to which I simply responded "Horseshit", as my later examination of your comments regarding the national debt should have made clear. ...
    (comp.os.vms)
  • Re: Hey, balloon, its spinnin time again
    ... deficit, not the budget deficit. ... budget deficit now projected for 2006. ... a hard time understanding the trade deficit, ... The difference will be the foreign payments tax ...
    (rec.music.artists.springsteen)
  • Re: Hey, balloon, its spinnin time again
    ... deficit, not the budget deficit. ... budget deficit now projected for 2006. ... a hard time understanding the trade deficit, ... The difference will be the foreign payments tax ...
    (rec.music.artists.springsteen)
  • Re: Highest budget deficit ever
    ... Highest budget deficit ever ... The federal budget deficit soared to $454.8 billion in 2008 as a housing ... Economists ...
    (misc.survivalism)
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