In defence of his trade war with China, Trump claims that ‘when you’re $500bn down you can’t lose.’ The problem with this stance is that persistent U.S. trade deficits with China are arguably a sign of U.S. strength or even imperial privilege, not weakness. However, on this issue, he has much of conventional economics wisdom supporting him in his delusions that the U.S. is being treated unfairly or is ‘behind’ based on these deficits.

Everyone is talking about China’s currency, it seems.  Amidst months of building tension, there is an apparent consensus among most economists, the financial press, and leading economic policy makers in the West that the renminbi is hugely undervalued, making China’s exports unfairly competitive.  The global imbalances created by such ‘mercantilist’ and ‘protectionist’ exchange rate strategies, […]

Cf. See, also, Andrew Fischer, “On China” (MRZine, 29 March 2010). Andrew Fischer is Senior Lecturer at the International Institute of Social Studies of Erasmus University Rotterdam.  This PowerPoint file was presented at the IDEAs Conference on “Reforming the Financial System: Proposals, Constraints and New Directions,” Muttukadu, Chennai, India, 25-27 January 2010; it is reproduced […]