Oct 12, 2006- Kaptur Says Trade Deficit is Spiraling 'Out of Control'

Congresswoman Kaptur, a leading critic of "free trade"policies, responded to this morning's Commerce Department report that the U.S.trade deficit in August hit another record for a single month--$69.9billion. That figure exceeded the previous record of $68.0 billion, setthe month before. The August deficit far exceeded analysts' expectationsof $66.4 billion.

"These deficits are out of control and threatening ournation's long-term economic health," said Kaptur. "And yet the BushAdministration trade policy is just more of the same. As the saying goes,when you find yourself in a hole, the first thing to do is stop digging."

The deficit in goods in August increased $2.1 billionto $75.5 billion, according to the Commerce Department, while the surplus inservices actually increased marginally. The increase in the goods deficitwas driven by increased imports of industrial supplies, capital goods, consumergoods and automobile vehicles and auto parts.

"Our country is becoming more and more beholden toforeign interests that finance these deficits," said CongresswomanKaptur. "We are not only shipping jobs overseas-we are shipping billionsof dollars overseas. We are exporting our jobs and our wealth, not ourproducts.

"Our country is on path to break last year's recorddeficit of $716.7 billion. Our economy is now in uncharted waters. A trade deficit of this magnitude signals that our nation is no longerindependent. We are reliant on foreign goods, foreign oil, and foreign creditto sustain ourselves. To compensate for this loss of economic prowess, ournation is selling off pieces of itself---everything from the Indiana Turnpiketo our auto industry. The value of U.S.currency has fallen in global markets. As the dollar declined, gold pricesclimbed due to lack of confidence in the dollar. Saudi Arabia's investmentsand petrodollars have recycled through Wall Street, keeping the stock marketafloat, but at the expense of every family in America. Japan'sand China'spurchase of our U.S.public debt securities make our nation more beholden every day. Americaneeds a new burst of independence, not more dependence."

Kaptur is the author of the Balancing Trade Act of2005 (HR 4405), which would require the President to take action to confront America'sstaggering trade deficits. It would mandate that the President correctimbalanced trading relationships whenever the U.S.trade deficit with another country equals $10 billion for three consecutiveyears.