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
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Alister MacleodEvidence 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]”
Created: 7/13/2026, 8:49:27 PM
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