Global imbalances, especially between the United States and China, have become a major topic in today's international relations. The United States has long had a trade deficit, meaning it imports more than it exports, and has financed this by borrowing money from other countries. In contrast, China has been a leading exporter, with exports reaching $1.2 trillion in 2025, much of which goes to the United States, Europe, and other developing economies. Europe, on the other hand, has a small trade surplus, but it is shrinking as savings outpace investment at a slower rate. These imbalances have historically caused international tensions and financial instability, as seen in past crises like those in 1985 and 2007-2008. The risk of financial instability comes from the large volume of trade and the complexity of how money moves globally, where huge sums are held in financial claims and investments. If these imbalances are not addressed, they could lead to ongoing financial risks and trade disputes. There is a growing call to reassess macroeconomic policies to correct these imbalances. In the United States, this means reducing excessive government spending, while in China, it involves moving away from a model that heavily relies on investment and exports toward one that better supports services and domestic consumption. Europe is urged to boost its productive investment and economic growth to avoid long-term imbalances. The term "eurosclerosis" is used to describe the slow pace of economic progress in Europe. While Europe has excelled in creating a unified market and promoting trade, it has struggled with innovation and technological advancement. The shift from a world governed by rules to one driven by transactions creates new challenges, especially in achieving strategic independence and competitiveness in areas like climate change. Europe is grappling with the challenge of balancing its trade, defense, and environmental policies, which have traditionally been treated separately. A more integrated approach is needed, particularly as Europe navigates its position between the United States and China. The discussion also highlights the need to identify and address economic choke points, such as the dominance of the U.S. dollar and reliance on rare earth minerals controlled by China. While free trade is seen as beneficial, it must be balanced with measures to protect against economic pressure and ensure fair competition. The role of China in the European market is a complex issue, with some arguing for continued access to Chinese markets despite concerns over China's industrial policies and trade practices. The value of China's currency, the renminbi, is also under discussion. China's economic model, which combines a large export sector with low domestic consumption, is said to require an undervalued real exchange rate. However, the long-term viability of this model is being questioned, especially as global protectionism increases and China's economy shifts toward more domestic consumption. The European Union faces challenges in implementing a strong industrial policy due to financial constraints, leading to a reliance on national-level actions that may weaken the single market. The need for a unified European defense industry and a common loan to support technological development is being considered, with the goal of strengthening the international role of the euro. The discussion also includes the risks of rising interest rates, driven by factors like the growth of artificial intelligence and increased global borrowing. There is a need to monitor financial risks, particularly in non-bank financial institutions, which are less regulated than traditional banks.