The growing US global trade debt complicates attempts to renegotiate trade deals with foreign countries that have lent billions of dollars to America.
Fresh from Hillary's victories in Ohio and Texas, former US president Bill Clinton gave a masterful lecture on how Republican George Bush's misguided war in Iraq and inattention to the US economy have resulted in a massive US trade deficit.
To which countries does America owe the most money? Bill Clinton points to 4 foreign entities:
- China
- Japan
- South Korea
- Oil producing countries, notably those in the Middle East.
Which countries does America desperately want to renegotiate international trade deals on more favourable grounds for the US? Hmmm... let's see:
- China
- Japan
- South Korea
- Oil producing countries, notably those in the Middle East.
These countries are using America's debt payments to subsidize education and skills training to make themselves even more competitive in international trade.
Lenders are not predisposed to give borrowers a competitive edge in negotiations. Should the next US president be a Democrat, he or she will probably have to implement American tariffs as mechanisms to leverage more advantageous trade terms for American business.
Keep an eye out for the mention of American tariffs in upcoming speeches from Obama, Hillary and even Bill.
