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 are the implications of the US trying to exert pressure on the EU, particularly on Germany?

In what ways is Germany pressured internally within the EU regarding its surplus?