Merkel Hits Back at Trump Over Trade

The video discusses the trade deficit issue raised by Donald Trump, focusing on the shift from goods to services in the economy. It highlights Germany's large current account surplus with the US and China, driven by increased exports. The impact of quantitative easing is examined, showing capital flow from Germany to US fixed income markets, which helps finance the US deficit. The video also explores internal EU pressures, with Germany facing criticism for its surplus, and the US exerting pressure on the EU.

What economic issue did Donald Trump highlight that is considered an 'old economy' issue?

• Trade deficit for goods

• Service sector growth

• Environmental policies

• Technological advancements

What is one reason for Germany's increasing current account surplus?

• Lower investment in technology

• Decreased exports to China

• Increased surplus with the US

• Higher domestic consumption

How has Germany's capital flow affected the US economy?

• It has reduced US exports

• It has increased US inflation

• It has helped finance the US deficit

• It has decreased US interest rates

What internal pressure is Germany facing within the EU?

• To decrease its exports

• To invest more in technology

• To reduce its surplus

• To increase its surplus

What narrative is the US pushing regarding the EU's economic issues?

• The EU should increase its trade with China

• France should lead the EU's economic policies

• The EU should focus on technological advancements

• Germany is part of the problem due to its surplus