Michael Pettis has published two articles recently with the first dealing with China's debt economy and how it has dealt with it in the past and the problems in dealing with it now going forward and a second article on China's trade surplus and the United States and European trade issues which are parts of the coming trade crisis and global rebalancing.
I think he makes a mistake in analyzing the United States abstractly rather than currently, because the Unites States no longer has a coherent rational trade policy. The chaos TACO tariffs and failure to appreciate allies have been created by an age demented narcissistic making decisions on gut feelings while incapable of acknowledging reality and whether he is an emperor with or without clothes.
The Unites States no longer has international credibility and the global bond markets know it.
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