There are many imbalances around the world, but there are two colossal surpluses and two large deficits which stand out, writes John Redwood, Charles Stanley's chief global strategist.
Current account deficits have been largely ignored in recent years. There have been no problems in financing the large deficits of some of the advanced countries in a world of free floating currencies and large movements of capital across borders. Investors have been prepared to buy more US Treasury bills and bonds, UK companies and real estate to offset the large deficits on trade. Suddenly the larger deficits matter because Donald Trump is worried by them. He has drawn attention to the big imbalances in world trade, and argued that the US has been losing out on jobs and industrial ...
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