Seeking Alpha Seeking Alpha Portfolio App for iPad  By Rodney
Sullivan, CFA  That global trade imbalances matter has been made
abundantly clear by the ongoing global economic malaise. The
likely path to more sustainable levels of trade deficits,
however, remains far less clear. Consider the potential global
impact of populist cries for protectionist trade policies
ostensibly aimed at easing the difficult transition to more
sustainable trade and debt balances. In the event of a trade
war, we would all lose. Perhaps even more disquieting, however,
is how these consequences would most likely play out across
nations. The evidence presented in this commentary suggests that
countries like China, which depend heavily on total trade in
relation to their overall economy, would suffer most severely.
This evidence further suggests that instead of pursuing short-
term quick fixes that would exacerbate the malaise, global
leaders must work together to establish a long-term path to more
sustainable trade and debt balances.