The U.S. Trade Deficit Isn’t Caused by Low American Savings

Editor’s note: Professor Pettis rebuts the recent, disappointingly bad, article by Joe Stiglitz. Also, on the core of trade deficit causation, Pettis again clarifies how our deficits originate in trade surplus countries – through their practices – and are transmitted here.Economist Joseph Stiglitz recently published an interesting piece in Project Syndicate called “The US is at Risk of Losing…

China’s Challenge Is America’s Opportunity

Editor’s note: Interesting article by President of MIT. His strategy of more university R&D, however, is silent on location of production. Otherwise its “invent it here, make it there”. Which later becomes “invent it there, too”. American tensions with China over international trade spring partly from concerns that China gives tax breaks to its companies…