Tim Geithner is testifying before the Senate Foreign Relations committee on funding for the IMF, World Bank, etc.
He says rebalancing the global economy away from US demand is critical to the US’s effort to cut unemployment.
The Obama has a lot riding on the assumption that the world is going to suddenly stop doing business the way it done since the economy became truly globalized in the last 20 years. As Obama’s trip to China shows, it is easy to sketch out that notion on a blackboard (or powerpoint) but much more difficult to enact in a real world environment. The Chinese have no interest in rebalancing anytime soon, we now know.
