"They don’t want to look in the mirror. America doesn’t have a China problem. It really has a savings problem. America has the biggest shortfall of national savings of any leading country in modern history. And when you don’t have saving you have to run current account deficits to import surplus savings from abroad and run massive trade deficits to attract the capital. Last year America ran trade deficits with over 90 – that’s right nine zero –countries.
I think we should take the baseball bat out on Paul Krugman. I think the advice is completely wrong.
Isn’t it the height of hypocrisy that America can articulate a particular position in its currency but the Chinese are not allowed to do that.
Senator Schumer’s been bashing China now for about five years. I think he’s probably been to China once during that period. And he always has the view no matter where the Renminbi is, that it’s 27 and a half percent undervalued.
Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.