Suchergebnisse

In this paper, Antoine Brunet questions the OECD method in calculating contributions to GDP growth. He tries to show this method induces the users to seriously misjudge the contribution of external trade balance to GDP growth. He shows there is an alternative method, i.e. the AB method which is mathematically as correct as the OECD one. And this method is much more pertinent and allows the users to distinguish between two kinds of countries: on the one hand, the mercantilist countries and on the other hand, the non-mercantilist countries.

For several centuries, international relations have been structured by mercantilist practices. These aim at generating an external trade surplus to accelerate the pace of domestic accumulation. The countries that are subjected to these practices have a foreign trade deficit, which tends to handicap their growth. In the long run, countries with an external deficit must inevitably increase their foreign indebtedness, which can be hazardous to them. In a world where some countries have chosen strong mercantilist policies, deficit countries whose currency is not an international reserve one give the wrong answers to their crises f they choose to increase their foreign indebtedness beyond the level necessary to finance productive investments: their flight into indebtedness can only lead them into discrediting their currency and condemning them to vassalage. To avoid that, they must restore their foreign trade balance. Adapted from the source document.

The West made a disastrous error in 2001 when it allowed China to join the World Trade Organization (WTO). As a member, China can apply its strategy of economic warfare, based on the manipulation of its currency. Because of the undervalued yuan, China has stacked up a huge trade surplus. But where there's a surplus in one place, there's a deficit elsewhere. The upshot is that the economies of the United States and the European Union are now largely dependent on decisions made by Beijing. China's goal is very clear, namely to impose its hegemony on the world. Faced with this predator, Americans and Europeans have to take the appropriate measures, especially by heavily taxing products "Made in China". If there is no transatlantic accord, then Europe, whose currency is highly overvalued, should implement a currency policy designed to sharply reduce the value of the euro-and quickly! Adapted from the source document.