The US economy would be out of the doldrums more quickly if the Treasurer paused to think and chart out a workable strategy than to find convenient scapegoats for its problems.
Economies such as Canada, Japan, and Germany which have savings surpluses, typically run trade surpluses. Perhaps the USA should learn to do things more like them than to be a spoiler.
" BERLIN - CHANCELLOR Angela Merkel has defended her nation's trade surplus as evidence of the quality of German products and warned that distortion of currency exchange rates would dampen global economic recovery.
In comments to Die Welt's online edition released on Tuesday, a day before she departs for the Group of 20 economic summit in South Korea, Dr Merkel said her nation's trade surplus of 16.8 billion euros (S$29.9 billion) reflects 'how competitive German products are.'
Dr Merkel echoed her finance minister's criticism of the US Federal Reserve's recent cash injection, and compared it with China's currency policy.
She said that currency rates should not be held artificially low in an effort to boost trade and that the euro should not be forced to support a 'one-sided adjustment.' -- AP "
The allegation that China's currency manipulation was the "cause" of US trade deficit is oversimplifying economic theory. This is a lame excuse for one's own inefficiency and mismangement. '
On the contrary, the "undervalued" yuan has benefitted many poor and middle class Americans who could afford cheap imports of basic necessities (that don't bother the rich as much because they only spend a fraction of their income on or on other expensive substitutes).
Moreover, with everyone protecting its national interests (including the Japanese yen manipulators), it is understandable and unsurprising that China has to cushion global crises and safeguard unemployment for its billion workforce.