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May 2025 Newsletter: A Trade Breakdown
Those countries that sell more goods and services internationally than they buy also end up accumulating large amounts of dollars; this is the case with Japan and China. This is not a problem as long as they come about it honestly (and not through unfair trade or currency practices) and are content to do so, whether because of their confidence in t
... See moreRichard Haass • The World
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
... See moreLyn Alden • The Global Dollar Short Squeeze
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
... See moreLyn Alden • Economic Japanification: Not What You Think
Ranked: Visualizing the Largest Trading Partners of the U.S.
visualcapitalist.com
