@JoMicheII @JWMason1 @michaelxpettis The line of argument, at a high level, as I understand it: country A suppresses domestic demand, by various means, resulting in a trade surplus. It exports this "demand deficit" in the form of capital outflow to country B, which cancels this "deficit" with additional spending.
@DavidHenigUK My hot take is that they want to construct an alternative to WTO with selected partners. Hence they are keen for the EU to join them on the dark side and potentially cut a new tariff / subsidy deal.
@parochial@Uneasy_Money@michaelxpettis Folks from Biden's and Trump's camps have been seen carrying around "Trade Wars Are Class Wars". Excess savings are pushed into US's open capital markets. Hence the argument that US doesn't control its rate of saving, as prolific public spending cancels out the underconsumption
@parochial@Uneasy_Money IMV you are both right. I would venture that "excess savings", "trade imbalance" etc.. is a moniker for "some quantity of underconsumption". @michaelxpettis points to different kinds of practices from whence this arises, but also how it is transmitted to the rest of the world.
@arthurturrell It it not just WiFi that is the problem, it is software developers who build sites that fail to use progressive enhancement and assume that that users are going to be plugged into fiber or connected to 5G the whole time so they stuff a bunch of javascript down your throat
@Brad_Setser disclosure requirements under FSR act as a deterrent as a lot of chinese companies are unwilling to open their books (for obvious reasons) or fearful of contravening Chinese laws
@Brad_Setser There are other tools in EU toolkit such as foreign subsidies regulation which is more proactive and effectively projects state aid rules outwards. Off the top of my head l am aware of chinese solar manufacturers pulling out of tenders after being subject to a FSR probe
@parochial@MonaAli_NY_US@MichaelPettis That may be, but if you don't grok the importance of "excess savings", a pretty crucial term in the line of argumentation, it undermines the critique. "Saving" is a multivalent term in economics, ripe for misreading. We need to follow how it is welded by the author.
@jadenmiles@MonaAli_NY_US Influenced by John A. Hobson. His analysis leans on using “savings” in a national accounting sense from a balance of payments perspective. The basic line of argument is that trade imbalances cause demand deficit at the global level most of the recent hot takes seem to miss this.
@APHClarkson The cynic in me thinks that they are trashing the HE sector to dismantle universities as a place where students mix with other students from other parts of the world, and thus producing liberal minded graduates that are a threat to their electoral coalition.