John Redwood always blogs marvellously and this post on US-Chinese economic relations repays reading. To the point, clear, concise - it ends,
In the longer term the Chinese currency will have to rise against the dollar. In the not so longer term the US is going to have to cut its trade deficit more and its government deficit substantially. This week will see some shadow boxing as the two big powers adjust to the US being the supplicant and the Chinese being the stern bank manager. It’s in all our interests they find a fudge to keep the show on the road. It’s even more important that both sides grasp that they do need to change their ways. Chinese people should spend more, and the US government does have to rein in its massive spending.
Go read the whole thing.
