Article: Old rivals find common ground // U.S., Japan benefit by helping each other

The big U.S. economic news for the week was the once-again soaring trade deficit. The $11.6 billion gap in July set a record, reflecting increased imports of everything from oil to consumer goods. Of that amount, we imported $4 billion from Japan and nearly $5 billion worth of merchandise from China.

Sure, Americans have the benefit of buying desirable goods at competitive prices from abroad. But we pay with dollars. And right now those dollars are sloshing around overseas, especially in Japan. Will Japan continue to hold the dollars - and invest them in U.S. government debt?

When I visited Japan this month, bankers and politicians pointed proudly to the narrowing trade gap with the ...

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