Remember This for the G20 Meetings

The United States is telling other countries that it's willing to make a simple bargain. We'll  reduce our deficit and stop flooding the world with dollars if other countries promise to raise their currencies to give their citizens more buyer power, which will help close global trade imbalances. We get lower deficits and lower trade deficits. Other countries get buying power in the world economy. Sounds easy right?

Well, not everybody is going along with this plan because not everybody shares our interest in correcting these trade imbalances, especially vis a vis China. To wit:

Seven G-20 nations have trade surpluses with China - countries such as South Korea that sell half-finished manufactured goods for assembly in China, and exporters of raw materials such as Australia and Saudi Arabia that supply China's oil, minerals and other commodities. Those nations agree on the need for more balanced global trade but also benefit from China's export power.

There's also a confluence of interests between Germany and China. They both have economies that generate large trade surpluses and hope to keep it that way.

Read the full story at the Washington Post.

Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Why Principals Matter

Nadia Lopez didn't think anybody cared about her middle school. Then Humans of New York told her story to the Internet—and everything changed.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

A History of Contraception

In the 16th century, men used linen condoms laced shut with ribbons.

Video

'A Music That Has No End'

In Spain, a flamenco guitarist hustles to make a modest living.

Video

What Fifty Shades Left Out

A straightforward guide to BDSM

More in Business

Just In