The goods news: the US trade deficit has shrunk. On a rolling 12m basis the trade deficit is down to around $500 billion, and the data from the last few months suggests that it should fall even fur…

The fall in China’s recorded Treasury holdings in April has attracted a fair amount of attention. Too much, in my view. Best that I can tell, China shifted from bills to short-dated notes in Apri…

Many fear that China will not be willing to continue financing the growing deficits of rich countries, particularly that of the U.S. Throughout the crisis, China has continued to buy dollar assets,…

One. This was a very weak report. Very modest demand for US financial assets from the rest of the world is creating ongoing pressure for the US to adjust -- that is for the US trade deficit to fa…

Brazil, Russia, India, and China have increased their holdings of foreign exchange reserves significantly over the last decade. But China stands out when it comes to financing the United States. Ch…