1.   Another misperception the story dealt with was claims that the deficit reflects failed administration trade policies.

2.   A current account deficit reflects reduced demand for Canadian goods abroad, and the dollars need to purchase them.

3.   A deficit reflects more goods, services and investment flowing into the country than are being exported.

4.   A current account deficit reflects reduced demand for Canadian goods abroad and the dollars needed to purchase them.

5.   But other economists say the deficit merely reflects the relative attractiveness of investing in the United States and does not present any particular threat to the dollar.

6.   But the deficit also reflected the continued strength of the U.S. economy, which has created an enormous demand for imported consumer goods.

7.   But those who believe that trade deficits merely reflect the low savings rate insist that any budget surpluses be used to pay down Treasury debt.

8.   The deficit reflected exports by Japanese companies that previously supplied US markets direct from Japan, Mr Sachs said.

9.   The widening trade deficit also reflects a long-term problem for the dollar.

10.   To mainstream economists the persistent U.S. trade deficit mainly reflects the inability or unwillingness of the United States to finance its investment fully out of domestic savings.