The balance of trade deficit/surplus between nations is not determined by relative currency values but by differential savings rates; a nation with a 30-35% household savings rate (China) will run a trade surplus regardless of currency strength, while a nation with 7% savings (US) will run a deficit regardless of policy; hence a yuan gold standard would not make Chinese exports uncompetitive.

causalpending

Speaker

Alister Macleod

Evidence Quote

The balance of trade depends...on the differential in savings rates. What happens in China is that households save something between 30 and 35% of their income every year. Compare that with the United States for example. What 7% if you're lucky [32:36-33:06]

Source

Alasdair Macleod: China's Gold StandardGoldRepublic Global
Created: 7/13/2026, 8:49:27 PM

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