But this time, the Chinese government manages to restrain domestic inflation, so America’s trade deficit with Asia stops falling and starts rising again, as does Europe’s, while Latin America finds itself priced out of its export markets. Five or six years hence, the world economy faces the danger that it faced two years ago, although the fear this time is not of a sudden crash in the dollar’s value, but of a sudden crash in the value of the dollar and the euro against Asian currencies.