China Lands Record Trade Surplus

Some people aren't going to like this:

"China’s trade surplus more than tripled to a record $102bn in 2005 on soaring exports, according to official figures that are likely to draw more criticism to Beijing’s currency policy.Exports jumped over 28 per cent to $762bn last year while imports rose nearly 18 percent to $660bn, according to year-on-year figures released on Wednesday by the General Administration of Customs".

Of course exports rising at 28% is just a touch lower than last year, and no more than what they actually need to maintain the heady pace of investment.

Here's someone who doesn't exactly warm to the news.

Also this piece by Marty Feldstein seems to be going the rounds (and here).

I find Feldstein's view here puzzling, since, regardless of whether or not you think the dollar should fall, one of the considerations would also be your appreciation of the euro, and euro denominated government paper, and since Feldstein has perhaps been one of the most outspoken critics of the euro, you can certainly accuse him of not being exactly 'consequentialist' here.

Brad says: "It is nice to have some of the arguments I have made backed by someone on the short-list to replace Alan Greenspan." Well I could also say the same about the euro. Indeed, I could go further, and say (if you look carefully at the arguments Bernanke actually puts in euro at five ) "It is nice to have some of the arguments I have made backed by someone on the short-list to replace Alan Greenspan, and by the person who has actually replaced him". Of course non of this makes any of these arguments right.