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The ballooning trade deficit is feeding popular fears about "unfair" competition from abroad.
We must use trade agreements to aim for balance and end decades of ballooning trade deficits.
As evidence, they point to the ballooning trade deficit and the hubbub over outsourcing and "predatory trade practices".
All the recent trade agreements have contributed to a ballooning trade deficit, with the drop in exports crippling American manufacturing.
The administration also erred big in deciding to deal with the ballooning trade imbalance by letting the dollar slide.
Mr. Khurshid also said that the Chinese were aware that India was deeply concerned about its ballooning trade deficit with China, its largest trading partner.
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Nevertheless, as the Treasury Secretary reminded his rather complacent audience: 'The laws of economics have not been repealed, much less those of human psychology.' Between the lines of recent remarks by Summers and his predecessor, Robert Rubin, one detects serious concern about the US stock market, the ballooning US trade deficit and the dependence of the US economy on 'other people's money'.
Two main factors are behind the tension: the ballooning U.S. trade deficit with China — $273 billion in 2010, compared with just $83 billion a decade earlier — and soaring U.S. unemployment starting in 2008, for which some blame job losses caused by the low Chinese currency.
More than a decade ago, Ben Bernanke famously argued that a ballooning U.S. trade deficit was the result, not of domestic factors, but of a "global saving glut": a huge excess of savings over investment in China and other developing nations, driven in part by policy reactions to the Asian crisis of the 1990s, which was flowing to the United States in search of returns.
The 12-nation currency has risen sharply since September over persistent concerns about the ballooning U.S. trade and budget deficits.
Turkey has likewise mended fences with Iran; a ballooning bilateral trade and growing diplomatic warmth between the two countries has made clear that–unlike its predecessors the current government in Ankara views the Islamic Republic more as a partner than a regional competitor or security threat.
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