Wonkbook: How a little bullying by Trump could avoid another global economic meltdown

By Steven Pearlstein We interrupt our wall-to-wall coverage… | Sponsored by Uber
 
Wonkbook
The latest economic and domestic policy from Wonkblog
 
 
Sir Mervyn King, former governor of the Bank of England, sees at least one way the global economy is out-of-whack. (Simon Dawson/Bloomberg) By Steven Pearlstein We interrupt our wall-to-wall coverage of the latest Trump imbroglio to bring you this important news flash: Remember the global economy, the one that nearly collapsed in 2009?  Well, it turns out that although we stabilized it, we never actually fixed it, and there is a very real danger that it is about to unwind all over again. That’s the sobering message delivered by the former governor of the Bank of England to a blue-chip gathering Tuesday evening at the Peterson Institute in Washington. Mervyn King — Lord King to his friends and countrymen — is the closest thing there is to a charter member of the global economic and financial elite, a Cambridge-trained economist who taught at Harvard, MIT and the London School of Economics before settling into a 26-year career at the world’s second-oldest central bank. As King sees it, as long as countries such as the United States and Britain continue to run large and persistent trade deficits while countries such as China and Germany continue to run large and persistent trade surpluses, the global economy and the global financial system will remain fundamentally unstable and susceptible to another crisis. One can hear faint echoes of a Donald Trump stump speech in King’s concerns about trade deficits.

Read the rest on Wonkblog.

Top policy tweets

ADVERTISEMENT
 
Most Recent Posts from Wonkblog
Treasury to call for rolling back banking regulations
The U.S. treasury secretary has a plan. Sen. Elizabeth Warren is having none of it.
 
Trump administration formally launches NAFTA renegotiation
Negotiations with Canada and Mexico begin as soon as Aug. 16, the administration said.
 
How a little Trump bullying may steer the global economy from another meltdown
Sir Mervyn King, former governor of the Bank of England, sees at least one way the global economy is out of whack. Trump could help get the right people to the table to address it.
 
How Twitter got a big new study on Trump’s supporters mostly wrong
A host of writers deemed a new study proof that it was racism — not “economic anxiety” — that motivated Trump supporters. The study’s author says that’s not quite true.
 
Chinese propagandists are using adorable kids to take on Donald Trump
China is turning to kids’ videos and Claymation to stress just how different it is from the U.S.
 
What Amazon could do to the business of selling prescription drugs
 
ADVERTISEMENT
 
Recommended for you
 
The Energy 202
Your daily guide to the energy and environment debate.
Sign Up »
 
     
 
©2017 The Washington Post, 1301 K St NW, Washington DC 20071
 
 
 

Related posts