Executive Summary
Pettis observes the trade imbalance in the countries' balance of payments. Some developed countries have a large amount of debt because they import much more than they export while some other developed countries have large surpluses in their balance of payments. This trade imbalance in the balance of payments is not sustainable according to him. While China continues to make massive investments by using the advantage of cheap labor in the country and Japan continues fighting against stagnation, U.S. and Europe has important problems of producing and growing. In a world like that all the countries are facing structural problems and ...
