The BBC headline says "Record US Trade Deficit in 2006". The Financial Times headline is "Asia States Warned on Danger of Reserves".
The BBC story reports that for the fifth year in a row we have set another record in our trade deficit. It is now forcing us to borrow more than $2 billion a day and it is growing along with our supposed great economy; it's now 6.5% of GDP.
The Financial Times article reports of the urgings of the chief economist of the Asian Development Bank that growing countries that sit on their reserves (by investing in US Treasuries) are setting themselves up for a crash. Countries are urged to retire debt or buy higher-yielding securities.
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