But the US never keep these sort of agreements anyway, look at the history of the Plaza accords and US agreements to balance consumption with Japan. We are looking at the biggest stock/bond/asset bubble in the history of the world. Things are cheap while paper and promises are cosmically overbought.
U.S. Treasury Secretary Tim Geithner just unveiled the results of the Stategic and Economic Dialogue with China. The prepared statement includes commitments to shoring up global financial institutions and regulations and allowing more foreign investment in China. Geithner also writes:
"In the United States, the current account has fallen and private savings rates have risen to historical average levels, and we will take steps to sustain and reinforce these trends.
"China will rebalance towards domestic demand-led growth and increase the share of consumption in GDP."
Translation: China will get its citizens to spend more, and the U.S. will try to close the trade gap and get its citizens to save more. An accompanying fact sheet says China will loosen wallets through measures like "strengthening the social safety net."
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