02/13/2006

American Deficit Disorder

Hello:

Last week, it was reported that the U.S. trade deficit widened to $725.8 billion last year for its fourth straight annual record due, in part, to increased importing of oil and increased purchasing of goods manufactured in China. The trade gap for December alone we $65.7 billion dollars, up approximately 1.5% from the previous month.

The good news is that some of that outgoing money might have been recaptured during last week's auction of 30 year Treasury bonds, the first in many years. Treasury bonds have been dropping in value due to concern about the new Fed Chairman Ben Bernanke making his first comments on the economy to the House Banking Committee on Wednesday.

Have your donors expressed concern about gifting away their children's or grandchildren's inheritance? Contact us to discuss a donor wealth replacement strategy as a way to transfer assets intergenerationally.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager