China Germany: Trade Deficits

china germany: Navarro singled out China and Germany in particular, saying that in the real world of fixed exchange rates, managed floats and outright currency manipulation, the U.S. trade deficit cannot adjust as economists say it should in theory, according to The Japan Times. That leads to large and persistent trade deficits which leave the United States open to foreign takeover, he said in a speech to the National Association for Business Economics. Outlining an unapologetically aggressive trade policy, Peter Navarro, director of the White House National Trade Council, accused economists and the media of ignoring the risk posed by trade deficits and embracing an antiquated view of the world. Suppose it is not a benign ally buying up our companies, our technology, our farmland and our food supply chain, and ultimately controlling much of our defense industrial base, he warned. That could lead to the loss of a broader cold war for our freedom, prosperity and democracy, not by shots being fired but by cash registers ringing, and ultimately even to loss of a hot war. Rather it is a rapidly militarizing strategic rival, intent on hegemony in Asia and perhaps world hegemony. (news.financializer.com). As reported in the news.