U.S. trade deficit soars to $58.3 billion
Record imports in January for consumer goods, cars

"The soaring trade deficit must be financed by foreigners willing to hold U.S. dollars in exchange for the products they sell to the United States. The concern has been that the trade deficit at some point could rise so far that foreigners become reluctant to hold dollar-denominated assets such as stocks and bonds."

(Let's say that Iran goes to China with an offer to sell oil at $10 a barrel under the spot price in return for Chinese protection. The Chinese Ambassador calls upon the US government, and hints that if the US doesn't lay off Iran, the Chinese will dump dollars. Returning to the article - - - )

"Such a development could send stock prices plunging and U.S. interest rates soaring. The mere prospect of such a change has been enough to send the dollar tumbling in recent weeks, following remarks by officials in South Korea and Japan that at some point they might consider holding less in dollar reserves."

"However, Federal Reserve Chairman Alan Greenspan said in a speech Thursday night that he believed any such changes in dollar holdings would occur in an orderly fashion that would not disrupt U.S. financial markets."

Greenspan saying "he believes" means it's not a sure thing.

Seems kinda scary.

Arf