What a Relief! Plan Decided to Ease Poor Country Debts the Story of How Japan Blew Its Trade Surplus with the US and Other Mysteries of International Finance

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Over the last decade, Japan has had a trade surplus with the United States of about $500 billion. In the same period, Japan's losses on its investments in the US have been approximately the same - $500 billion.

"Amazing," says economist C. Fred Bergsten, who made the rough calculation of Japan's losses.

What it means, in a sense, is that Americans as a group got a free gift of about a half trillion dollars of Toyota Camrys, Sony TVs, Panasonic VCRs, and lots of other Japanese imports. This is just one hint of the importance of international finance and economics to people around the world, though their eyes may quickly glaze over at talk of special drawing rights, …