UBUD, Bali -- Earth to China-bashers: Beijing should not be blamed for America's trade deficits or for the weakness of the dollar. Those that believe so are confusing symptoms with causes. Other elements of conventional wisdom have it that there is some choice as to whether the exchange value of the dollar will rise or fall.
To this end, the Bush administration has been criticized for a devaluation policy that involves "talking" down the value of the dollar. Meanwhile, its penchant for tax cuts is blamed for larger fiscal deficits. But in this case, blame should fall on the U.S. Congress for pork-laden spending that is pushing the government ever deeper into debt.
There is good reason to be concerned with the U.S. trade deficit. It is expected to rise to 6 percent of gross domestic product and hit a record $600 billion this year, up from $496.5 billion last year and $421.7 billion in 2002.