Articles on Trade deficit

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The financial system is awash with money, which is why interest rates have been so low for so long. (Shutterstock)

How banks have set a trap for the U.S. Fed by creating money

It’s been 10 years since the U.S. signed into law a scheme to print money, essentially, and save the financial sector amid the sub-prime mortgage meltdown. Did it work? And who’s truly benefitted?
Kentucky bourbon is among the products targeted with retaliatory tariffs by the EU. AP Photo/Jeff Chiu

Why trade wars can be perilous: 5 essential reads

Trump has started a trade war with China and much of the world. Here’s what you need to know.
CEO Tim Cook built Apple’s vast supply chain, which stretches from China to Europe. Reuters/John Gress

We estimate China only makes $8.46 from an iPhone – and that’s why Trump’s trade war is futile

The president launched a trade war largely on the premise of a massive trade deficit with China. A closer look at the iPhone shows why he’s wrong.
U.S. President Donald Trump, seen here in a February 2018 photo, has a beef with trade deficits. Yet running trade deficits with Asian countries has long spurred American spending and consumption. (AP Photo/Evan Vucci)

Donald Trump’s misguided aversion to trade deficits

Donald Trump’s obsession with trade deficits, and his subsequent wielding of the tariff big guns, is the absolute wrong approach for the U.S. economy.
Whether or not China and the US are successful in negotiating out of a trade war and restoring the integrated global economy, there will still be strategic tensions between the nations. THOMAS PETER / AAP

What’s at stake in the tariff negotiations between the US and China

We modelled a number of scenarios showing all increases in US or Chinese trade protection would cause international trade, and the global economy more generally, to shrink.
London’s trading strength has evolved from dockyard cranes to high finance. Rubén Moreno Montolíu/Flickr

Britain drops one deficit target and ends up facing a new threat

As the budget deficit fades from political view, anxiety shifts to the much wider current account deficit. It may signal UK dynamism, but neither financing nor closing it look easy after Brexit.

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