The predicted upshot is that the federal deficit will hit a record of $304 billion in 2003 and climb to $307 billion in 2004.

Since World War II, the deficit has climbed above the 3 percent level nine times.

The deficits with Japan and China each climbed to $7.2 billion for the month, the most ever recorded with any country.

The deficit for the full year climbed 24 percent.

And the deficit with China, a growing source of trade friction, climbed to $3 billion, from $2.8 billion.

Next comes China, and the deficit with that country climbed $400 million in April, to $2.2 billion.

In all, the deficit with Western Europe climbed $150 million, to $225 million.

Over the following four seasons, the deficit climbed to almost a third of the million dollar annual budget.

The American deficit with China climbed $300 million, to $3.3 billion, in July.

Before seasonal adjustment, the American deficit climbed in October to $11.8 billion from $10.7 billion, the report also showed.