Even Walser

Did 2008's $677 Billion Trade Deficit Cause the Recession?

As Bernanke said, the problem is not that we consumer too much, it is that the rest of the world consumes too little. Asia, particularly China and Japan have flooded the US with credit while through market manipulation suppressed their own consumer demand. These are classic mercantilist policies. It is time to call a spade, a spade and recognize that the world economy cannot grow on US consumption alone. We need Asian countries to let their currencies float and allow their consumers to reap some of the hard fought rewards of economic growth.