The 2005 trade deficit hits record of $725.8B.

Up 17% from the year before – which was the previous record. $617 billion.

Four years in a row the deficit has set a record. Really, I think this is a new trend and can’t imagine how we won’t set another record in ’06. Not when everything we buy is built in Asia and half the fuel we burn is drilled in the Mid-east or South America.

The fun thing about deficits – they add up. It’s like a credit card, but they keep raising the credit limit. Who is “they?” I suspect the Chinese, but I’m sure it’s spread around a bit. Who else has such a vested interest in us buying so much more than we produce? And what happens when they decide to cash in on the debt?