Finance and Economic

The United States, which led the world into recession, may now see its fragile recovery stifled by events across the globe.

Dangerously high debt levels in Greece and some other European countries could trigger a wave of national defaults, undermining revival in Europe and probably in the United States as well.

And China’s recent steps to cool its economy also complicate President Barack Obama’s plan to attack high unemployment here by increasing U.S. exports. Financial markets have been whipsawed over concerns that debt problems in Greece — and perhaps also in high-debt Spain, Portugal, Ireland and even Italy — might infect stronger European neighbors.

Euro zone countries are key U.S. trading partners, and the United States can’t meet Obama’s goal of doubling exports in five years — or reap the benefits in new jobs — if debt default contagion spreads throughout Europe.

China is also deemed an important growing export market for U.S. goods. But Beijing’s recent steps to curtail bank lending and its economic saber-rattling at the United States have increased trade tension between the world’s largest economy and a country poised to soon surpass Japan for second place.

The Obama administration says it wants to move away from an economy fueled by heavy consumer spending and reliance on imports toward what economic adviser Lawrence Summers calls "an economy that’s based on investment, that’s based on exports, that’s based on saving payday loans." Unfortunately, all the other major economies also are counting on digging out, at least in part, through expanded exports. For every nation to be able to meet such a goal, of course, is a mathematical challenge.

The financial turmoil in Europe does have one potential silver lining for the U.S.: The uncertainty has raised the value of the dollar as measured against the currencies of 15 of the nation’s 16 biggest trading partners.

But there’s a downside to that, too. A stronger dollar makes made-in-America goods more expensive in overseas markets.

The U.S. trade deficit surged to a larger-than-expected $40.18 billion in December, the biggest imbalance in 12 months.

The Commerce Department said the December deficit was 10.4 percent higher than November. It was much larger than the $36 billion economists expected, with much of the increase coming from a big jump in oil imports.

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