Global Current Account Balances Widen, Reversing Narrowing Trend

While the US runs persistent current account deficits, Japan runs persistent current account surpluses, which is how these substantially different NIIPs were built.

This will be interesting for the United States over the next decade. Unlike Japan, which funds its own fiscal deficits domestically, the United States has historically been partially rel

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Miran’s thesis:

The dollar is too strong — and it’s killing American competitiveness.

Why?

• Global demand for short-term U.S. debt

• Reserve currency distortion

• Weaponized dollar system

• Hollowed-out industry

Solution? Reset the game.

This is almost total nonsense. The only possible way it could be true is if the amount of intervention in the renminbi was unaffected by the price level, and this is certainly not the case. If it were, the People’s Bank of China should anyway immediately raise the value of the renminbi substantially in order to improve its terms of trade at no cost

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Under the current global monetary system that came into effect in 1971, the dollar has had three major cycles of weakness and strength, and each one of these cycles of strength has caused a global short squeeze, leading to financial crises, and impeding growth until resolved. Nations that have the least foreign-exchange reserves and/or the most lia

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