"China, the dollar, and the return of the Triffin dilemma"

From Gold  Standard Now

''What is at the core of the monetary tension between the United States and China?

Director of international economics at the Council on Foreign Relations Benn Steil, co-author of Money, Markets, and Sovereignty (Yale University Press, 2009), perceptively observes:

China’s position on imbalances is also the same as the US position at Bretton Woods: the debtor should bear the burden of adjustment. In the present context, that means tighter US monetary and fiscal policy, as would be required under a classical gold standard (that is, the United States sends a dollar to China, China redeems it for gold, US gold stocks fall, policy tightens to draw gold back, imbalances fall). But now that the United States is a massive debtor, rather than the creditor it was at Bretton Woods, it rejects the logic of debtor adjustment.''

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