President Obama arrived in Tokyo Friday to deliver an announcement regarding the global economy’s excessive reliance on American consumers. The address is part of the administration’s initiative to rebalance the global economy. Conferences in Singapore, China and South Korea next week will reinforce these same themes. President Obama plans to urge China to modify its economic policy in order to incite domestic consumption as the United States pulls back consumption and pushes for increased saving and exports.
"The President will continue to be clear that one of the lessons of the economic crisis is that growth driven by U.S. consumers is not sustainable in the 21st century," said Ben Rhodes, a senior official in the White House National Security Council.
Whether bona fide policy changes will be made to help rebalancing take hold, for instance persuading China to permit the yuan to appreciate on the international currency market, has yet to be discussed. Such a move would provide increased buying power to Chinese consumers while driving up the price of exports.
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