It is unclear exactly what the order would do or how harsh it would be, but it would be designed to begin to make good on Mr. Trump's promise during the campaign to redress China's
huge trade surplus with the United States.
«All these countries that are running
huge trade surpluses with us, have no incentive to rock that boat.
China has worked hard to produce and sell its wares to eager European and other overseas buyers, amassing, in the process,
huge trade surpluses.
China ran
huge trade surpluses even before then, when it was the Chinese central bank that exported capital as it accumulated one of history's largest hoards of central bank reserves in its efforts to keep down the value of the renminbi.
Among the creditors that finance these unprecedented sums, the two largest are the central banks of China (with $ 853.7 billion in reserves) and Japan (with $ 831.58 billion in reserves), both of which are the managers of
the huge trade surpluses these countries enjoy with the United States.
However, the capital flows needed to sterilize
their huge trade surpluses are making the bankers of New York City very rich.
Not exact matches
But when governments systematically accumulate
huge amounts of dollars, the reason has almost always to do with creating or expanding the
trade or current account
surplus, which is just the obverse of expanding the export of net domestic savings.
If the
trade is in balance and America has a
huge balance of payments
surplus from all the debt service that countries owe in dollars — plus a
huge remission of profits by American companies that have bought out foreign industry — then the dollar's exchange rate would soar.
There is now broad consensus on how these imbalances - the
huge gaps in
trade deficits and
surpluses, and the associated gaps in national savings, consumption, and investment rates - helped caused the housing bubble and the Great Recession.