-->The U.S. current account deficit widened sharply in the second quarter to a record $166.2 billion from a revised $147.2 billion in the first quarter (previously $144.9 billion).

The goods & services gap rose to $150.3 billion from $138.6 billion, while the nation's income surplus declined to $2.6 billion in the second quarter from $12.2 billion in the first quarter.

Private foreign purchases of U.S. Tresauries fell to $35.6 billion from $65.4 billion in the first quarter, as did official foreign purchases of Treasuries, down to $63.0 billion from $101.7 billion.

But foreign investment in the United States remains strong. Foreign owned assets in the U.S. rose a solid $265.2 billion in the quarter, down from a $445.3 billion surge in the first quarter.

Federal Reserve policy makers, who are a bit removed from the needs of Washington politics, continue to warn that high deficits increase the nation's dependence on foreign investment. But high deficits over the last few years have been consistently matched by strong appetite from abroad