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looking beyond borders

foreign policy and global economy

Archive for the tag “Balance of trade”

Will Trump Destroy The Dollar?

Under President Trump, it is possible, for the first time in a generation, to imagine a concerted attack on the central bank. Conceivably, the United States could repeat the story of the mid-1960s and ’70s, when a 15-year period of central-bank independence was brought to an end by presidential bullying. Back then, Lyndon B. Johnson summoned the Fed chairman, William McChesney Martin Jr., to his Texas ranch and shoved him around the living room while proclaiming that low interest rates were imperative in a time of war.

Read Here – The Atlantic

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Budget And Trade Deficit, The Two Big Issues For the U.S.

While Washington is consumed by political furor over how to get the federal budget deficit under control, strangely few people are talking about its troublesome twin sister. Unlike the budget deficit, the half-trillion-dollar U.S. trade deficit does nothing to stimulate the economy even in the short term. Rather, it is sucking jobs out of the country year in and year out while also raising doubts about America’s ability to maintain its global security commitments. Taking sensible measures to reduce our chronic imbalance of trade would require neither austerity nor tax increases, and is the key both to creating jobs and to restoring confidence in America.

Read Here – Washington Monthly

Britain: A Nation In Decay

Lost in this cross-wired debate is the issue of the long-term future of the economy. Britain has been finding it difficult to recover from the financial crisis not just because of its austerity policy but also because of its eroding ability to engage in high-productivity activities. This problem is most tellingly manifested in the country’s inability to generate a trade surplus despite the huge devaluation of sterling since 2008.

Read Here – The Guardian

Tied In Trade Knots

The United States surpassed the European Union in the first 11 months of 2012 to become the largest buyer of Chinese exports, according to data released by the Commerce Ministry on Tuesday. The value of US trade with China increased by 8.2 percent year-on-year to reach $438.62 billion, according to the ministry. At the same time, China‘s exports to the US increased by 8.2 percent to $319.4 billion, and its imports from the US went up by 8.1 percent to $119.2 billion.

Read Here – China Daily

Economic Recovery May Come Too Late For Obama

The green shoots of recovery are growing a little taller. Newly released gross domestic product estimates   measuring consumer and government spending, investments and net exports   show the economy growing at 2 percent in the third quarter, up from 1.3 percent in the second. In normal times, this would be nothing to get excited about; average GDP growth between 1947 and 2012 was 3.25 percent. But we are recovering from a systemic financial crisis, not a routine dip of the business cycle, and in such cases recovery is noticeably more sluggish. Don’t believe Cassandras who suggest the good news is a chimera. We are in  an “L”-shaped recoveryrather than a “V”-shaped one, and the fact that GDP is steadily rising is in itself encouraging.

Read Here – Reuters

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