Wednesday, December 31, 2008

AIG's roots went back to 1919 in Shanghai

A Brief Shieh Family History from my father's side: My uncle MK traveled with the founder Cornelius V. Starr to the Interior of China without water as I was told by the son of my cousin(Bobby) over a hundred years ago. Starr worked with the US Office of Strategic Services during World War II to create an intelligence unit that gleaned information from insurance documents. I was a statistician with Farmers Insurance Group in 1951-52 in Los Angeles. My genes worked for two years only but I taught many decades with my genes from my parents who taught English and Chinese.

When AIG's CEO Greenberg took the reins in 1968, AIG was a privately held company. Greenberg, a compactly built son of a taxi cab driver,eventually became a figure in both New York and Washington, where he counted Henry Kissinger and Reagon CIA director Bill Casey among the confidantes. (Published by the Washington Post,December 29, 2008 on page A6 under the Crash of the leading characters with photos. My uncle published his biography with photo of Maurice Greenberg and I was given a copy for family remembrance.

My grandfather was the first Chinese to do insurance business with the British and my father had the opportunity to study and to teach at Anglo-Chinese College for many decades. That is Zia(Shanghai dialect) family history in Shanghai. My mother was a Manchurian princess who became a refugee from Hangzhou to Shanghai to teach in a school and met my father many decades ago.

Anglo-Chinese College was the prep school for St.John's University in Shanghai that I earned my B.A. degree in 1946.

Francis Shieh a.k.a. Xie Shihao on New Year's Eve with reflection of my ancestry with roots in Shanghai. December 31, 2008 at 12.26 p.m.

The Lesson of FDR: Chilling Uncertainty in the works

Washington Post,December 31, 2008 on page A15:

Amity Shlaes,a senior fellow at the Council on Foreign Relations, published such article: "Modern economists, monetarist or Keynesian, have not rejected this story of trouble with the 1930s. My comment: Irving Fisher's Quantity Theory of Money may be a truism but the expanding credit system has updated new situations. Cf. Theory of Equation of Exchange Revisited,published by the Atlantic Economic Journal for reference. Keynesian Cross Model encounters contractionary and expansionary gaps for the ever-searching optimum equilibrium point to be debated under the empirical evidence nowadays. Nobody has the pat answers but innovative policy would improve the financial crisis on the global scale.
Today, uncertainty also chills. Questions abound over the future regulation of stocks and derivatives, over tax policy,over bailouts. All this makes it hard for the market to settle on equity or home prices. Americans follow stories about Paulson,Geithner - more than they do the news about the FED or the Treasury. Conclusion: A new hundred days spent making good laws will bring sturdy recovery. A hundred days spent making more deals will not.
We are looking forward for the new President for making changes for a better America in fairness and justice.

Francis Shieh a.k.a. Xie Shihao making comments on December 31, 2008 at 10.25 a.m.

Globalization apropos of Political Economy

The issues of global sustainability have moved steadily from the back burner to the heart of politics and economics in the United States and around the world.

The needs of the developed and developing world are focused in the programs in environment, energy and sustainable development of human resources. Cf."Keys for Economic Understanding" www.Amazon.com book catalog for reference.

The earth is witnessing environmental change that is unique in its history. Increased levels of green house gases are warming the planet; the extinction of species is occurring at an ever-increasing rate; holes in the ozone layer are exposing us to harmful radiation. These are all the unintended consequences of growing human activities. We must learn about the results and better manage our interaction with natural systems. Our future leaders will plan ahead to craft effective solutions for the wellbeing of humanity in Sino-American Economics.

Governments seeking to reverse economic downturn would focus on increasing spending rather than on reducing taxes.

IMF Chief Economist Olivier Blanchard called for a coordinated global fiscal expansion equivalent to 2% of world GDP. Such implementation remains to be seen by member nations especially USA and China,two great nations on both sides of the Pacific.

Francis Shieh a.k.a. Xie Shihao,a watcher of economic policies for learning endeavor to share with readers in the New Year 2009 on New Year's Eve,December 31, 2008 at 6.30 a.m.

Tuesday, December 30, 2008

Direct correlation:Wall Street Journal and USAToday,12/30/08

Wall Street Journal,Dec.30, 2008 page A11: Samuel Huntington's Warning in evidence nowadays? Such is a sequel.The same comments can be found from my prior blog published in the Washington Post.

Page A12: ECO:nomics March 4-6 2009
Bacard Resort, Santa Barbara,California. I visited Santa Barbara as a Consultant for General Electric in 1965.

To request an invitation please visit ECOnomics.wsj.com or phone 800.556.7035

Page C1: Rebound in oil prices? China is the wild card. Oil demand in China may be softer that many expect. That remains to be seen.

USAToday,Dec.30, 2008 Myth or Reality: Page 8A- Humanism could bring people together, a philosophy where people work toward peace and harmony by reasoning. Confucianism can fit into such philosophy without reservation.

Non-Christians contribute to communities across USA. The sooner we can acknowledge all of us as Americans in the Constitution of the United States,14th Amendment,Section I of the Bill of Rights - not by hyphenated religious or ethnic Americans, the sooner we take a giant step forward toward becoming one nation regardless of how we relate to the Creator of us all. Be it God or Divine Providence or "Laotianye" in Pin Yin system of romanization for the Old,Heaven,Papa. i.e. the term of endearment for the Holy Spirit for all humankind in this mundane world.

Francis Shieh a.k.a. Xie Shihao,a lifelong octogenarian student of Philosophy,Theology and Religion since early 1940s. Economics has a bearing with all fields of endeavor.

Tuesday, December 30, 2008 at 3.16 p.m.

Tuesday,December 30, 2008 at 3.08 p.m.

Samuel P. Huntington, a longtime Harvard Professor

Huntington was an influential and provocative writer on important issues of the modern world. He published "The Clash of Civilization and the Remaking of World Order" His rationale appeared particularly germane after September 11, 2001.

Expanding on a provocative 1993 Foreign Affairs article, Dr.Huntington argued in the book that the principal causes of future wars would not be nation-state rivalries over trade,territory or ideology. Instead, he wrote,wars would erupt over differences in religion,history,language and tradition. He asserted that Cold War antagonisms were relatively minor compared with the continuing and deeply confictual relation between Islam and Christianity.

My comment: The best way to counteract such possible threat from varied cultures is not to fight in the war but to study religion,philosophy,language and tradition of other nations particularly the Middle East and Asia. If Americans know American language and tradition only,Americans would never understand other religions,philosophy and languages. Such bias would cause misunderstanding at best or conflict at worst in the 21st century. It is high time for Americans to study other languages and cultures for friendly communications with humankind in the name of globalization and humanity. I have reason to believe that our new President Obama would advocate such strategy to change American education to emphasize international studies for the best interest of USA and for the survival of humankind on earth.

Francis Shieh a.k.a. Xie Shihao,an octogenarian learner of international studies of economics since early 1940s for global peace and economic development.

Tuesday,December 30, 2008 at 12.12 p.m.

Lawrence Summers 's view:WashPost,12/28/08 with my comments

On Page B7 Former Treasury Secretary,Harvard President and the head of the White House National Economic Council in the Obama administration published Obama's Down Payment: A Stimulus must aim for long-term results:-

"Investments in education,energy,infrastructure and health care -offer the potential of extraordinary high social returns." Investment in public education is positive externality as I sent my past blogs. Social returns would mean Socio-Economics that would meet 21st century educational challenges apropos of training.

"Creating jobs that Americans need and doing the work that our economy requires." Such top priority may be found in "Keys for Economic Understanding" www.Amazon.com online book catalog for reference. " The economic team is crafting a broad proposal,the American Recovery and Reinvestment Plan,to support the jobs and incomes essential for recovery while also making a down payment on our nation's long-term financial health." I endorse such proposal wholeheartedly.

It is good to read energy setor must be pushed for both public investments and the removal of barriers to private investment. It is the mix of public and private sectors as I sent my blogs with the same rationale.

Lawrence Summers is certainly correct in his thought to strengthen our middle class and our economy over the long run. The middle class is the backbone of any nation and President-elect Obama reiterated such thoughts via the media that voters count on such promise.

Francis shieh a.k.a. Xie Shihao,an avid learner of economics in action to see economic policy to serve the American public in the American society. Such goal would be shared by the economic policy to serve the folks in China for maintaining stability when Chinese have opportunity for jobs with a marketable skill to earn a decent living for China's harmonious society. The common goal for USA and China is to serve the people in both nations with the proper mix of public sector and the private sector in the 21st century.

Tuesday,December 30, 2008 at 9.50 a.m.

Monday, December 29, 2008

Journal of International Affairs Winter 2008

Columbia University's School of International Affairs since 1947 with interdisciplinary approaches. That is my approach to study International Economics.

Page 92: China's interests have been transformed by its growing dependence on the dollar-based international monetary system. That is not unexpected from my past blogs in re China is a friend of the United States.

Page 96: China's growing importance in the world will help to encourage the RMB's international use responding to China's role as a creditor to the United States in particular.

Page 99: China would prefer a lower risk and lower profile strategy of acting regionally rather than globally guided by Deng's instruction that China would maintain a low profile. My comment: Such perspective is the Confucian traditional culture in the minds and hearts of leaders and folks in China.

If readers would be interested in multidisciplinary approach to the study of China via philosophy,language and economics et al,please consult the works by Shieh,Francis listed in the Library of Congress online catalog www.loc.gov for reference.
Francis Shieh a.k.a. Xie Shihao on December 29, 2008 at 2.50 p.m.

Humbled by our Ignorance:WashPost,12/29/08

Page A15:(By Robert J. Samuelson)
The financial crisis has gone global,economic growth in 2009 will be the lowest since 1980. Even China has slowed; steel output wad down 12% in November from a year earlier. Global financial markets are interconnected. Money flowing into developing nations iss expected to shrink 50% in 2009 from 2007 levels,estimates the World Bank.

All the bad habits of years-excessive borrowing by consumers and money managers,careless and reckless lending -grew in a climate when gains seemed ordained.
What will emerge from these shattered illusions? Will the crash stir social unrest,abroad if not here? Will Americans become so thrifty that they hamper recovery? Will economic nationalism surge? How will capitalism be reshaped? Much depends on whether the frantic policies to combat the recession succeed. Probably they will, but there are no guarantees. My comment: The balance of the mix of public sector and private sectors is to be pursued under the new administration in 2009.
Professor John K. Galbraith's saying is worth remembering: "There are those who don't know and those who don't know they don't know." in good humor!

Francis Shieh a.k.a. Xie Shihao,a reviewer of "Almost Everyone's Guide to Economics" by Professor Galbraith,published by Atlantic Economic Journal,September 1979 for reader's reference. December 29, 2008 at 9.18 a.m.

Saturday, December 27, 2008

Humanist Community:Letter from C. Martin Centner

Letter to the Editor,Washington Post,December 27, 2008 on page A14:

"It is true that humanist parents have difficulty finding a supportive community similar to that found in a church(News story,Dec.21). Luckily, our area has three Ethical Societies -one each in North Virginia, Washington and Baltimore.

Each group is a congregation that provides Sunday school for children, meetings for adults and other activities. All welcome visitors seeking an alternative to traditional religious beliefs and doctrines, people who have faith in reason and compassion and who seek a like-minded community comitted to making this world more humane."

The above community sounds like China since most folks in China are born with Confucian tenets from families of past generations to learn ethics and morality. In the West,Adam Smith was a professor of moral philosophy to share such reasoning of humanity. However,folks with zeal in humanity may have faith in religion as well.

Francis Shieh a.k.a. Xie Shihao on December 27, 2008 at 11.12 a.m.
. Any person with faith in his/her chosen religion may be a humanist as well. That is my rationale in sending this blog for understanding Sino-American economics of free volition of the minds in the name of Homosapiens.

Francis Shieh a.k.a. Xie Shihao,a searcher of spiritual faith leading to religious belief with human behavior for the sake of humanity. fDecember 27, 2008 in USA.

Elaine Chao as Secretary of Labor for two terms

Washington Post,Dec.25,08 on page A17:

To be sure, Chao is now part of the establishment,married to Senator Mitch McConnell(Republican-Kentucky) I congratulate Elaine Chao as the wife of a lawmaker with empirical evidence of Sino-American Economics of Matrimony. Morever,such news with her photo was published on Christmas Day to demonstrate ethnic humanity of multi-cultural evidence in USA. I do support such global harmonious cooperation.

Francis Shieh, a Kentucky Colonel doing eleemosynary work since 1970 a.k.a. Xie Shihao,a graduate student from Shanghai in 1947 to witness closer Sino-American Economics with great enthusiasm during the Yuletide season of peace and goodwill.

December 27, 2008 at 7.12 a.m. It will be 60 degree today with warm feelings toward Homosapiens. Global warming?!

Friday, December 26, 2008

New York Times,Dec.26,2008 pages A1,A14

Dollar Shift: Chinese pockets filled as Americans emptied theirs:
Professor of Economics Ben Bernanke proposed the theory in March 2005 at Princeton University that Americans to borrow from the Chinese.
In the past decade, China has invested upward of $1 trillion mostly earnings from exports into American government bonds and government-backed mortgage debt. That has lowered interest rates and helped fuel a historic consumption binge and housing bubble in the US. Alan Greenspan was in charge of FED then.
For the past 5 years, China has been one of the most prolific bidder. It holds $652 billion of US Treasury debt, up from $459 billion a year ago. China owns $1 of every $10 of America's public debt as per analysts' figures.

The US will depend on the Chinese to keep buying that debt, perpetuating the American propensity, economists say.

Francis Shieh a.k.a. Xie Shihao,a watcher of Sino-American Economics.

Be spontaneous, joyful and gentle with laughter and love

The title would be empowering and lovable with unique strength in substance:-
Reading, musing and meditating my way through any issue with equanimity.(zhenjing)
Using positive focus with lofty perspective.(gaoshangdeshijiao)
Doing the simple chores such as washing the dishes,picking up the garbage as sporting activities to be hale and hearty."jian zhuang de xiao huo zi"
My views are exciting and my experiences are inspiring. (zhenxiyiqie)
I like to go adventuring and setting off on a quixotic quest."nan yi yu zhi de xiang xiang li" such as global financial crisis. My blog rests here for readers to ponder the outcome. The parentheses(yuankuohao) with Pin Yin would be of interest to those who know the phonetic equivalents of the Chinese language for fun.

Francis Shieh a.k.a. Xie Shihao, an octogenarian thinker with imagination to share with avid readers. December 26,,2008 at 11.10 a.m.

Human Capital of Health: Mind and Body

Meditation is derived from the balance that the mind and body is one functional unit for improvement of focus,relaxation and insightfulness with upbeat and cheer. Energy may be increased via mantra with achievement of paradigm.

Chinese civilization has used traditional contemplation as a spiritual discipline for millennia and has believed it to be the ultimate source to merge with personal consciousness. Such conception,perception and projection are spiritual and philosophical principles to rekindle mental and physical agility from the teachings of Confucius and Mencius. Such mode may be reinforced by the study of Confucianism from the work listed in the Library of Congress. www.loc.gov for reference.

Francis Shieh,or Shieh,Francis(Last name first) i.e. Xie Shihao on December 26, 2008 at 7.08 a.m.

Wednesday, December 24, 2008

Christmas thoughts on SHANGHAI: Sino-American Globalization

As a native of Shanghai, I have reflections apropos of Holy Christmas with the following:

Monasticism leading to Humility re SHANGHAI.(as acronym) To Wit:

S - Simplicity
H - Holiness
A - Always
N - Nobility
G - Glory
H - Happiness
A - Amity
I - Individual

As an individual,the above words are expressed to honor my native city and to share with other readers during Yuletide for Season's Greetings to all.

Shanghai Expo will take place in 2010 with cosmopolitan background as known in the past.

Francis Shieh a.k.a. Xie Shihao, an octogenarian on Christmas Eve,December 24, 2008 at Andrews AF Library at 1.32 p.m.

Sequel to Spirituality in USA and in China

Economics of Health,a field in Human Capital. There is a link between health and spirituality. Meditation is associated with improved immune systems and less episodes of inflammation. Such benefits extend to mental health as well. Folks with spirituality have lower rates of depression. More researchers found out that there is a strong link between the mind, the spirit and the body. Improve one and have the effect of the other. Prayer with meditation would contribute to positive scenarios for worthwhile living in the world. I do have faith,hope and LOVE. Francis Shieh a.k.a. Xie Shihao on December 24, 2008 at 10.22 a.m.

Tuesday, December 23, 2008

Global Recession as Retreat with thoughts of spirituality

Washington Post,December 23,2008 page A1: Plunge in exports reverberates across Asia. Professor Presad said :" Many countries relied on export-led growth will have to rely on domestic demand to get out of this thing."

Page D6: China drops rates again to respond to recession in the United States,Europe and Japan.

Buddhism and monasticism in Asia may be construed as retreat to contemplation of spirituality to see the holy light during Yuletide.

Happiness is not material consumption over desire only,spiritual satisfaction must be added plus intellectual pursuit in the numerator and dampening desire in the denominator in a simple fraction.

What is the true meaning of Christmas in the mundane world? Christmas is the advent of the Savior of humankind to save the souls in this mundane world with faith plus the child-like dream of Santa Claus for getting gifts to family and friends as the tradition and culture.


"Work and Study Cycle Theory" may be reinforced by "The Cycle of Sixty or LX" The world is going like sixty to finish up the human race for X. What is the X-goal of life? Money? Status? A decent economics? The answer is left to the readers to envision your private interest and the global economics in the public sector.

In Pin Yin,"Liu shi nian feng shui lun liu zhuan" apropos of Sino-American Economics.

Francis Shieh a.k.a. Xie Shihao,a lifelong student to study scientific philosophy to be ignited by ethics and morality of Adam Smith and Confucianism in economics.

December 23, 2008 at 11.15 a.m.

Political and Economic Clout from Harvard: Humanism

For centuries,Harvard has produced a veritable "Who's Who in America." That is not untrue. Professor John K. Galbraith is one of the outstanding economists at Harvard.

President-Elect Obama, an alumnus of Harvard and family arrived in Hawaii for surfside respite.

Washington Post,Dec.21,2008 on age A10: Humanists in Boston. Tony Proctor,39,who owns a wealth management firm and attended the seminar at Harvard University with his wife,Andrea,35,a stay-at-home mother.

Humanism is both a formal movement and an informal identification of folks who promote values of reason,compassion and human dignity. Such values are definitely incorporated in major religions? Food for thought as metaphor.

In recent years, the chaplaincy at Harvard has hosted humanist speakers such as Nobel Economist Amartya Sen and others. Epstein is the Harvard humanist chaplain.

Confucianism has influenced folks in China but there are folks who believes in different religion with faiths in Divine Providence. Famous Chinese official Xu Guang-qi is a typical case of humanistic Confucian converting to Christianity in Shanghai. John C. H. Wu,former Visiting Professor of Law at the University of Hawaii published "Beyond East and West." May be searched at www.Google.com Since China is the most populous nation in the world and humanism should be applicable to China for humanity. Readers are expected to think,ponder and reflect about all human beings for humanity during Yuletide season with the aphorism: Peace on Earth and Goodwill toward all humankind with humanity.

Francis Shieh a.k.a. Xie Shihao, a student of economic philosophy on December 23, 2008

Monday, December 22, 2008

Trade barriers toughen with global slump!

Washington Post,Dec.22, 2008 on page A1,A4: Despite free-market pledge many nations adopt restrictive policies. The Law of Comparative Advantage should be enforced by trading nations.

China: Offering tax rebates on exported products like steel and textiles, a policy that foreign critics call a subsidy for Chinese exporters.

"Exporting firms tend to be innovative, dynamic and capable of generating good job growth," said Eswar Prasad, a professor of trade policy at Cornell University and senior fellow at the Brookings Institution in Washington. "If trade restrictions caused by trade wars shut them down, their suppliers shut down, job losses get worse, and you quickly have a spiraling downward effect on the entire economy."

Such scenario may or may not be seen for Sino-American economics. That remains to be seen,however.

Francis Shieh a.k.a. Xie Shihao on Monday,December 22, 2008 at 11.28 a.m.

Sunday, December 21, 2008

Relevant Economics as observed by an octogenarian

My modest thoughts: Economic Science has been deemed with the dominating private sector restricted by the narrow assumption of self-interest that entails. It is high time to find an alternative framework that would dovetail with the traditional values for humanity and noble reasoning for public interest apropos of Adam Smith as a professor of moral philosophy. The concepts as fairness, commitment,human dignity,motivation should be stressed in the field of economics. Moreover,the close relationship between government and the market must be noted under a new spotlight with humane perspective to be named as decent economics in the 21st century.In other words:Socio-Economics i.e. economics should be aimed to serve the society under new leadership for a changing America after January 20, 2009.

Francis Shieh a.k.a. Xie Shihao sends this blog. Readers' feedback would be appreciated as sharing the common pursuit of knowledge as lifelong learners.
Sunday,December 21, 2008 at 7.35 a.m.

Saturday, December 20, 2008

Washington Post,Dec.20,2008 Pages B1,B3 Headlines

Unemployment Levels in Metro Washington,DC area highest since the Mid-1990s,Economists say: My comment: They need to have a marketable skilled to supply the demand of a changing society in USA and in China as well.

Data from the Bureau of Labor Statistics of USDL. Low-skilled workers struggle amid more competition and fewer openings: Para-professional training is needed as elaborated in the following book: -

"Keys for Economic Understanding" is dedicated to low-skilled workers to be trained with a vision in 1965 to be relevant in the 21st century. It is published in USA and also published in the United Kingdom due to high demand. www.Amazon.com online book catalog for reference.

Francis Shieh a.k.a. Xie Shihao on Saturday,Dec.20, 2008 at 10.46 a.m.

Friday, December 19, 2008

Bound for Zero:Editorial/WashPost,Dec.19,2008

"FED Chairman Bernanke: Japan's sluggish recovery reflected certain structural inefficiencies, such as a highly protected food market, which do not plague the US. But the US is burdened with costly health care."

The success of FED's strategy will depend not only on its efforts but also on the size of the fiscal stimulus package to be enacted by Congress early 2009. $850 billion is being discussed as per the headline,Dec.19,08. The taxpayers would be responsible for such payments in due course of time. Right?

Justice is cited in an article on page A25 but on B3 Workers stage rally to protest treatment by law enforcement of Justice Department. Such controversy may be ideological or otherwise? Readers be the Judges.

Francis Shieh,a learner trying to learn the stories as being unfolded. Dec.19, 08 at 12.45 p.m.

Thursday, December 18, 2008

Washington Times,Dec.18,2008 Similar rationale re my blogs

Page A1: Material world told to spend less, be happy:

Happiness is not material consumption over desire only but to add intellectual pursuit and spiritual satisfaction to the numerator over the denominator of desire. In other words,when desire is dampened,happiness can be realized. Such may be verified from the past blogs.

The Pope says so too or shares the rational reasoning with the blogger since the Pontiff is younger,born in 1927 to be compared with the blogger born in 1926.

Page A15: Confucian heritage as the sequel to the prior blog apropos of ethics and morality for folks in South Korea. Ethics and Morality should be stressed for leaders in USA and China in managing the economy. Confucius/Mencius packs the same intellectual weight as Adam Smith i.e. The East and the West is regarded as One Human Race:UNO.

Page A16: Secretary of Treasury Henry Paulson,Jr. called China's 30th anniversary of Reform as a turning point in US-China history and Deputy Secretary of State Negroponte added that US looks forward to working with an increasingly confident and open China. Open trade between US and China and vice versa would be to honor the Law of Comparative Advantage for mutual benefit.

Their statements do reinforce MY CREED as the Heading in the past blog for sharing thoughts.

Francis Shieh a.k.a. Xie Shihao, an octogenarian student to compare notes with other Americans and moral leaders apropos of Sino-American Economics to have proper economic development.

December 18, 2008 at 3.25 p.m.

ExonMobil Ad in the Washington Post, Dec.18,08 p.A23

"Our commitment beginas with our Standards of Business Conduct,which provides a common set of ethical practices for all folks."

Confucianism stresses ethics and morality and Adam Smith was a professor of moral philosophy,they share the same goal in the East and in the West.
The East and the West meet in Sino-American Economics. Let me hope to see honest and ethical leaders in the West and in the East from the media in the days to come.

Francis Shieh a.k.a. Xie Shihao, an octogenarian student of Confucianism and Adam Smith since 1940s to date. Dec.18, 2008

Wednesday, December 17, 2008

The positive denotatiion Vs the negative connotation

RANDOM THOUGHTS to share with readers:

If it is real frugality,it would be fine and dandy but if it is used in a facetious way,it would mean stingy and miserly. Such thoughts may be applied to many situations in rhetoric expressions.

To some,Chinese language is as difficult as Greek but to the Chinese,it is as simple as ABC. "It is Greek to me" may be interpreted as:"It is Chinese to me!" To the British folks,English is their mother tongue of UK but American English may be American language per se with distinction spoken by Americans with modifications. The Dictionary of the American Language was published in 1970 if I remember right.

To a few,China may be a threat in the East but to the folks with positive insights,China may be a true friend to the West in times of present economic crisis. The East and the West are One apropos of globalization.

It is a matter of perspection and reception and my off-the-cuff remarks end here on December 17, 2008 at 3 p.m.

Francis Shieh a.k.a. Xie Shihao trying to practise what I learned in my English class in Shanghai during the first part of 1940s: "With malice toward none but amity towards all." plus the Gettysburg Address ending with " the government of the people,by the people and for the people shall never perish from the earth."

Happy Birthday to Abe Lincoln to follow his maxim. I shall be in Shanghai on the 12th day of February(NOT 1809 with humor) for such occasion if my memory serves me correctly. The new president of the United States shall be inaugurated on January 20, 2009 with changes to see for a better America in the mundane world.

Washington Post,Dec.17, 2008 with reflections to promote goodwill

Page A1 FED cuts key rate to record low to try to arrest a deepening recession. Poll shows broad economic hardship for folks in USA.

With strikes,China's new middle class vents anger. But I found out the prices are coming down for certain items in Shanghai per phone call this morning.

Page A7: New Poll shows 63% are already hurt by downturn of the economy. The unease is most palpable among those with annual family incomes less than $50,000. They are twice as likely as those with high incomes to be very much concerned about maintaining their lifestyles. In this respect,Chinese lifestyle is certainly different from Americans due to custom and tradition with the innate culture of Confucianism. Such culture may be seen in Korea, Japan or Asia in general as I have noticed when I was a tourist there decades ago.

Page D3 Bernard Madoff will appear in a Manhattan court today. He was charged with fraud after telling his sons he had taken $50 billion from invesors.

Such individual case might affect the reputation of Jewish community. But such stereotyped prejudice is certainly unfair and biased. To my recollection,when I was teaching economics decades ago, one student and friend suggested that my last name be changed to Rockefeller in court to gain more respect since Shieh is not well known in US culture. I appreciated his good intention but I said that when folks see me,my face value is not Rockefeller. However,the sound is close to Shay or Shea to be in the mainstream with Irish humor. However again,the spelling of Sheik may have different image. Such cases have been challenged in 2008 when President-elect Obama,a name with unique ancestry,nominated multicultural leaders to show America as a melting pot as evidence to change America to be a better America without discrimination. I support such change wholeheartedly. Perhaps Obama's native State of Hawaii bears more fruits for a multi-cultured USA.

Needless to say,Sino-American Economics will be in the positive range for mutual benefit of cooperation and collaboration in terms of globalization.

Francis Shieh a.k.a. Xie Shihao, an octogenarian shares such change for a better America in the years to come. America is different now in comparison with America in 1947 when I came to San Francisco when a boy followed me and called me a chocolate face for fun.

It is to be known that only 8 days until Christmas and we celebrate such religious feast regardless of race,color,creed and age on December 17, 2008 at 10.36 a.m.

Tuesday, December 16, 2008

Higher education investment act: Human Capital in USA,China

Washington Post, Dec.16, 2008 on page A8:

At this critical juncture in our history,America's public community college stand ready to partner with the federal government and our states to help revitalize our nation's economy and educate and train the next generations of Americans to meet the challenges of global competition. The following works are dedicated to such mission:

1. Keys for Economic Understanding. 1971. Published in US and UK. www.Amazon.com book catalog for reference.
2. "The Future of Community Colleges" published by the Congressional Record,July 18, 1974.
3. Keys to Economic Understadning.1976. www.ask.com for reference.
4. Work and Study Cycle Theory.1978. To be validated and implemented in USA or in China to enhance productivity for adult workers.

The two fastest growing groups in US population have the lowest college graduation rates: only 37% for black Americans who start college and 44% for Latinos who start college. Moreover, American schools and colleges are inexcusably deficient in providing fair educational opportunities to our poorest students.

In China,poor students can apply for scholarships to go to schools and colleges as recent policy to train human resources in China.

I was awarded scholarships at the University of San Franciso,Georgetown University Graduate School and California Open University several decades ago to complete my terminal degree due to my financial needs.

In my past blogs,I have advocated the role of the government to finance education for the needs of human capital in America in the 21st century.

It is gratifying to read such investment act today as an open letter to President-elect Obama and his administration by Carnegie Corporation of New York.

Francis Shieh a.k.a.Xie Shihao on Tuesday, December 16, 2008 at 10.32 a.m.

Monday, December 15, 2008

My Creed during Yuletide 2008 and beyond...

I am blogging to disseminate thoughts on US-China economic activities.
I am a lifelong watcher of economics in action,
My mission is to see positive US-China relations achieved.

I am blogging to learn Sino-American economics.
I am a guardian of intellectual integrity -- chengshi and zhengzhi or wanzheng (in Pin Yin system of romanization),
I defend the US Constitution: in particular the Amendments I and XIV of the Bill of Rights .

I am a student, researcher and learner.
I try not to leave the reader behind,
I will spare no effort.

Francis Shieh a.k.a. Xie Shihao, an alumnus of St. John's university from Shanghai, China, Class of 1946, and subsequently earned graduate degrees in 1950 and 1978.

Monday, December 15, 2008 at 2.50 p.m.

Dec.15,1978-Dec.15,2008 Most important for USA-China

Richard Holbrooke,a former ambassador to the United Nations wrote:The Day the door to China opened wide,published by the Washington Post,Dec.15, 2008 on page A21.

The opening with China by Nixon and Kissinger in 1971 is remembered as a historic breakthrough, the most important bilateral relationship in the world today.

I remember when I was a member of the research staff at the RAND Corporation,Kissinger was a Consultant during 1964-1965. I published "A Glimpse of the Chinese Language"(March 1965) www.rand.org for reference. On page 8, I hinted the opening of China for American engagement as my vision to be gradually realized,
yielding the benefit for USA and China.

Economist Richard Moorsteen published "Remaking China Policy" Harvard University Press,1971 with the same vision when he was my colleague and student of Chinese. His book can be searched online and is listed at Foreign Service Institute Library when I was a faculty in 1998-l999.

On page A20,James Lieberman wrote letter to the editor urging US diplomats to have useful knowledge of foreign language for better understanding.

Gazette Community Forum,Dec.11,2008 on page A13 Laurel Lashley suggested the learning of another language besides your own.

During the year 1972,two-way trade was less than $1 billion but today it is a staggering $387 billion annually. I have repeatedly cited the Law of Comparative Advantage for trade in my previous blogs.

Deng Xiaoping became China's paramount leader with the concept of "One Nation,two systems" As a Fulbright Senior Scholar, I delivered a lecture in Hong Kong,February 1990 apropos of conceptual understanding of economics. Such perspective thoughts can be traced online from my prior blogs.

Francis Shieh a.k.a. Xie Shihao,a graduate student from China in 1947 with the ideal and idea to see proper Sino-American economics for mutual benefit in terms of globalization. December 15, 2008 at 10 a.m.

Sunday, December 14, 2008

West and East are ONE in the world

Washington Post,December 14, 2008 page C8:

Avery Dulles, 90; prominent Cardinal, Theologian left this mundane world at age 90.

He was the son of former Secretary of State John Foster Dulles and his uncle Allen Dulles was the director of CIA from 1953-1961. He was converted by philosophy of Thomas Aquinas. After graduating from Harvard in 1940, he served in the Navy during WWII and attended Harvard Law School. He entered the Society of Jesus(Jesuits) in 1946 and taught at Woodstock College in Maryland. His spiritual journey as his biography entitled "A Testimonial to Grace" was translated into Chinese by a faculty of St.Ignatius College in Shanghai,1945-1947 and was distributed in Taiwan in 1954. Cardinal Dulles became a preeminent theologian in the United States. It is timely to note that an alumnus of Georgetown donated US$ 75 million to encourage students to study Theology at Georgetown University. Spirituality is very much emphasized for such bequest to the oldest Christian university estabished in 1789.

Francis Shieh a.k.a. Xie Shihao,has similar spiritual background as a faculty at Xuhui School in Shanghai from 1945-1947 with background at the University of San Francisco and a graduate degree from Georgetown in 1950. After 3 years of teaching at IHC in Los Angeles,the educator went to teach at Aquinas College in Michigan,1961-1964.

It is interesting to note that Bishop Aloysius Jin, S.J. of Shanghai has similar Jesuit background. Here is the meeting ground of the West and the East involving Sino-American spirituality as stressed by Confucius/ Mencius and Thomas Aquinas dedicated for the wellbeing of humanity.
December 14, 2008 at 2.56 p.m.

Training the next generation of workers

Washington Post,December 14, 2009 Page B6:

The Brazil steps in to educate future workforce of engineers and technians, should be a wake-up call for the United States. Ira Raskin of Bethesda wrote to the editor.

I wish to add that economists are needed as planners to look ahead for the future of the work force in America.

Demographic changes are underway in USA that will reduce the number of educated workers younger than 65. Even if we keep extending the retirement age or see a major influx of human capital from other countries, a younger, smaller and less educated US workforce is likely to be hard-pressed to maintain the productivity required to pay for the health and pension needs of a larger number of retiresss. Significant investment will be needed to upgrade the workforce's skills in the years to come.

Such rationale is the same as in the previous blogs apropos of American labor force. "The Future of Community Colleges" published by the Congrssional Record,July 18, 1974 is envisioned by such shortage of skilled workers in the 21st century.

Francis Shieh a.k.a. Xie Shihao sees the same dire needs of para-professionals in China as I sent my prior blogs re such desiderata. December 14, 2008 at 2.33 p.m.

Folks in USA and China are friends for peace and goodwill

My mind can be expanded with download information online for cultural enrichment.

East-West Center launches 'Asia matters for America' website: www.AsiaMattersforAmerica.org for reference.

The new Hong Kong Commissioner for Economic and Trade Affairs in the US is Donald Tong. As commissioner, Mr. Tong will continue Hong Kong's efforts to enhance economic, trade and cultural ties with the US. US relations with Hong Kong have been characterized by cooperation on a range of issues, such as economic and trade development, counter terrorism and global health protection with market-based philosophy and common values. Hong Kong is SAR of People's Republic of China. Chinese folks in Hong Kong share cultural tradition with China. Trade is to honor the Law of Comparative Advantage with mutual benefit. US and China are in the same boat on earth. I remember a popular song in 1940s: "I love to get you on a slow boat to China,all the way,alone." Quite Romantic,indeed!

As an Honorary citizen of Honolulu,Hawaii since 1969 and as a former Fulbright Senior Scholar,1989-1990,I am dedicated to the economic globalization for the unity of the East and the West.

Francis Shieh a.k.a. Xie Shihao,i.e. "Thanks from a hero of poetry" in name only. I claim to be an educator from the East with my teaching experience in Shanghai from 1945-1947 and the West(1947-to date) with continuing interest as a learner to witness the interwoven link of the USA and China in the 21st century.

Happy Holidays to all the readers on Sunday,December 14, 2008 at 7.16 a.m.

Saturday, December 13, 2008

Jane's Industry Quarterly + US-China economics

It is a result of Jane's assessment of Russia and China's eligibility as golden markets on the basis of spending, stability and openness.(Defence Budgets)

Russian Federation: Upper range for spending; Middle range for stability; Lower range for openness.

China:Upper range for spending; middle range for stability; Lower range for openness.

It is interesting to note the above similarities for Russia and China.

The US government owes $2.7 trillion to foreign governments and investors -20% of our total GDP. And that number has grown rapidly. Exact figures are not available. In 2001, China held $61.5 billiojn in US debt. Now it has 541 billion, says James Ludes of the bipartisan American Security Project in Washington,D.C.

Will a new stimulus work? Kevin Hassett, a former economist at the Federal Reserve suggests that the government should instead spend funds on our nation's aging infrastructure, an option that Congress is weighing. "Constructing a bridge or a road increaes economic activity across a whole area,it's the kind of thing that can really stimulate the economy. My comments: Giving a fish to a person,he/she will eat a fish. If a person is taught how to fishing,he/she may catch more fishes in the long run. Such aphorism implies investment in education and training of skilled labor needed to enhance productivity for economic growth in USA and in China .

Francis Shieh a.k.a. Xie Shihao on Saturday,December 13, 2008 at 10.38 a.m.

Friday, December 12, 2008

World Bank Senior Economist Vegas for Public education

Washington Post,Dec.9,08 on page A1, A14: Latin American countries have focused on building schools and expanding access to public education. Such policy is similar to the positive externality of the role of community colleges in USA. "The Future of Community Colleges" was published in July 18, 1974 with such vision.

The training of workforce was elaborated in "Keys for Economic Understanding"(1971) www.Amazon.com online book catalog for reference to the American model.

Jane's magazine,December 2008 issue with the current information: -

China established a hotline with the US in March 2008 and recently set up hotlines with South Korea to try and reduce the risk of conflict in the Yellow Sea.

December issue of Jane's Defence Industry published Pakistan seeking Chinese loan for fighter purchase due to economic pressures in Pakistan. Such loan deal of an estimated USD 2 billion for Chinese fighters. Pakistan Navy is to receive eight former US Navy P-3C Orion maritime patrol airraft,through Foreign Military Financing(FMF) funds from the United States.

The above info would be of interest re Sino-American economics for reader's reference from open sources.

Francis Shieh a.k.a. Xie Shihao,a reader with interest of contemporary happenings to learn economics from varied materials to share with other readers online.

Friday, December 12, 2008 at 2.28 p.m.

A compound-complex picture with humor if detected

Washington Post,Letter to the Editor on page A26:

Kevin Blythe of Alexandria,VA. wrote: "I propose a $15 billion bailout for the newspaper business. Isn't the press part of the foundation of our democracy? My comment:Freedom of Expression is guaranteed in the US Constitution if I remember correctly. If we didn't have the in-depth reports,how could we make decisions on all the other bailouts that Congress is considering? Think of all the editors,writers,graphic designers,printers,deliverers,etc., who stand to lose their jobs if the papers go under. Why $15 billion? I don't know...seems like the smallest respectable amount to ask for these days. Thanks and good luck?"

The above naive recommendation reminds me of the late Professor John K. Galbraith for his wise saying: " There are those who don't know and those who don't know they don't know!" Who knows then? Perhaps the readers of Sino-American Economics to read the blogs about China's part in the role of US economics in the 21st century and beyond...

Francis Shieh a.k.a. Xie Shihao in Pin Yin with X as the first letter of Pin Yin romanization of my Last Name. However,the Wu dialect i.e. Shanghai dialect starts with Z for Zia as the phonetic equivalent of 17 strokes for the traditional and 13 for the simplified Chinese character with word radical + shooting or body and inch. Well,X as the unknown factor and Z means the end i.e. A to Z Or from Alfa to Omega in Greek. But the Greek language has 24 instead of 26 in English alphabet. Short 2! X and Z are missing as I have explained above. Are you truly perplexed? Well,the reader is supposed to be confused under the circumstances. The whole thing is nebulous at best. Hehehahahoho all the way and we surely will live to be centenarisns with such brainstorming for the brainstorm. Mea Culpa! Economic storms from the past,the present and the future. "After a storm,comes a calm!" The good days are upcoming when we uplifting our spirit! Such impact is loud and clear,indeed.

Friday, December 12, 2008 at 10.46 a.m.

Confucianism as part and parcel of Chinese demeanor

The Chinese social orientation is based on the Confucian ideal that individuals should be mainly concerned about the place in the network oof human relations especially family circles. Americans tend to attribute pride to the cases of personal accomplishments i.e. individualism . Moral judgments are reinforced by traditional norms and regulated by conformity to primary groups. A strong orientation to perform altruistic acts for the sake of close relatives and friends is part of Chinese culture. Five cardinal relationshiops which stresses the harmonious connection between leader and follower,father and son,husband and wife,brother and brother(sisters as well) and friend and friend. Such collective mentality may be seen or otherwise in the days to come!

Happy Holidays in USA but Chinese in China would celebrate the Lunar New Year of the Ox/Cow effective January 26, 2009. It is up to readers to concur or demur with your own volition as individual's choice or change in the name of economics under the present global economic problems. Food for thought as metaphor!

Francis Shieh a.k.a. Xie Shihao,a graduate student from Shanghai,China in 1947.

Friday,December 12, 2008 at 7 a.m. during Yuletide for Peace on earth and Goodwill toward all folks.

Thursday, December 11, 2008

Worlds at War: The 2,500Year struggle between East and West

Anthony Pagden,Professor of History at UCLA published such book by Random House. 625 pp. $35. and reviewed by Richard Bulliet of Columbia University. Published by the Washington Post,Dec.9, 08 on poage C2.

Easterners ,such as ordinary Muslims has had little previous contact with the Europeans since the 13th century. Muslims are regarded as folks in the East.(sic)

Samuel Huntington's "The Clash of Civilizations" whetted the appetite for anti-Muslim. The East appears to be the enemy of the West with Eastern civilization.

Chinese civilization is known to the world and China is in East Asia or Near West for USA. The Europeans used the term "Far East" as a misnomer for America from viewing the map of the world.

"Beyond East and West" by John C. H. Wu, a distinguished legal scholar from China, is a classic in its own right for the academic community published in the 20th century but will impact the West during the age of globalization in the 21st century.

Washington Post published endowment at the Library of Congress to honor historians Peter Brown as an authority of the Middle East and Romila Thapar as a scholar of India.

The above citation occupies the entire page for lifetime achievement in the study of humanity. I hope that Kluge Prize will be awarded to scholar of China since Chna is the most populous nation in terms of making contributions to humanity in the 21st century.

Francis Shieh a.k.a. Xie Shihao,a lifelong student trying to bridge the gap between the East and the West.

December 11, 2008 at 3.45 p.m.

Downturn choking global commerce: Theology to be studied

Washington Post,Dec.11, 2008 Page A1:

Chinese exports fall furthest in 7 years.

With recessions hitting the United States,Europe and Japan at the same time, China's exports took biggest dive in 7 years. 2/3 of small toy exporters closed in the first 9th months of 2008.

Washington Post,Dec.10,08 page D4:

Robert Rubin, the Treasury Secretary turned boardroom sonsigliere,conjured up the perfect storm to explain how Citigroup and the rest of Wall Street brought the global financial system to a grinding halt, vaporizing trillions of dollars in wealth and putting large swaths of the economy on government life support. Such economic crisis was attributable to greed,frakud and negligence. The heart of such mania is an epidemic of self-delusion that infects unsophisticated investors and smartest executives and bankers. Such happenings are secular at best!

December 11,2008 Washington Post published news : Georgetown University received a bequest(Yizengwu) in Pin Yin system of romanization) from an alumnus who invested in IBM and funeral business with the specific requirement to donate such large sum to the study of Theology at Georgetown. Such intent is loud and clear to train young students at Georgetown University to stress morality and ethics,similar to Confucianism. "Philosophy of Mencius" has a bearing on Theology in the mundane world and is listed at Georgetown University library online catalog for students to learn the link of the East and the West in faith with ethics and morality.

Francis Shieh,a.k.a. Xie Shihao,an alumnus of Georgetown Graduate School,Class of 1950.

December 11,2008

Wednesday, December 10, 2008

US Air Force Times,December 15, 2008 page 16

BUILDING RAPPORT: The US-China relationship has been improving. It moves us toward a multi-lateral environment that is more constructive. A foreign policy adviser to PacAF Commander General Howie Chandler expressed such view. Two photos were published as the theme. The said exchanges lead to greater cooperation in areas of combating terrorism and defuse international crisis. Such analytical rationale is the same insights as I sent my blogs in the past. USA and China are two great nations on both sides of the Pacific and it is significant that two countries work together in all fields for mutual benefit.

Francis Shieh, a.k.a. Xie Shihao, a graduate student from China in 1947 before the establishment of People's Republic of China in 1949. I still feel like a student to stay young as an octogenarian to live and to learn the happenings. December 10, 2008 at 3 p.m.

No Credit for Doing the Right Thing with Chinese inputs

Letter to the Editor by KB Forney of Gaithersburg: Published by the Washington Post,December 10, 2008 on page A24 -

"Consumers are no longer buying on credit as we are saving as much of our money as possible. We are investing more in reliable, if unexciting, bonds. We are being required to live in homes we can afford. Isn't this exactly what economists have been telling us to do for years? And yet the economy is crashing. We are finally doing all the right things, and it is destroying our way of life. Would someone like to explain this to me?

OK. I'll try to explain to you as an octogenarian student of economics: Hear(or listen carefully) both views and make up your own mind if you wish to make up your mind. Or,you may be reminded of the words of wisdom from Professor John Kenneth Galbraith:"There are those who don't know and those who don't know they don't know." However, if you wish to learn from Chinese cultural aphorism:"Shun li cheng zhang" in Pin Yin system of romanization,meaning "Logic begets reason!" Or "Sui ji ying bian" meaning "Resourceful act according to circumstances." In this regard, "A Glimpse of the Chinese Language" in English may be useful to understand the Chinese Pin Yin system of romanization i.e. phonetic equivalents of the Chinese language. Free copies are available if readers would visit www.rand.org and search "A Glimpse of the Chinese Language" via PDF as public service for public interest in USA or in the world.

Francis Shieh a.k.a. Xie Shihao on Wednesday,December 10, 2008 at 10.18 a.m.

Tuesday, December 9, 2008

Wall Street Journal, Dec.9, 2008

Page D7: The First Emperor: China's Terracotta Army in Xian and in High Museum of Art in Atlanta. Online photo can be seen at wsj.com/lifestyle today,Dec.9, 2008

When visiting Atlanta museum,you can see the Terracotta Army made by clay during Yuletide vacation. I am sending such info to all readers of Sino-American Economics.

Page A7 Zurich advertizing with a photo of Hong Kong Street signs of Beijing dumpling and Shanghai 369 restaurant.I went to such restaurant many times when I was in Hong Kong,1989-1990 as a Fulbright Senior Scholar.

Page C2: Mainland Chinese residents can directly invest in Hong Kong such as the rise of China Construction Bank stocks 10%.

Francis Shieh a.k.a. Xie Shihao, a reader of ASJ. Dec.9,08 at 1.50 p.m.

Health Economics: Aging well in USA/China

Washington Post,Dec.9, 08 Health Section on page F1:

We are getting older: The proportion of the US population age 65 and up is expected to increase from 12.4% in 2000 to 19.6% in 2030. The following suggestions may be accepted from an octogenarian of Chinese ethnicity. China's elderly may be over 30% of the population in the years to come. Hopefully all the aged folks are hale and hearty to be active in the world. It would be advisable to bear in mind with the following pointers.

1. Developing an agile mind to read,think and blog as a way to balance body and brain.
2. Walking or riding a bike for exercise.
3. Seeking money as one of the essentials in life. Intellectual pursuit and spirituality may be more meaningful for one's mental health with daily prayers.
4. Enjoying aesthetics to see the beautiful things in this mundane world.
5. Trying to get up early and go to bed early as proper routine.
6. Cultivating Good thinking with a smile plus optimistic attitude.
7. Laughing often begets pleasant thoughts.
8. Loving makes life to be worth living.
9. Saying "Mea Culpa" to admit our human frailties.
10.Eating Chinese food with veggies and fruits.

Francis Shieh a.k.a. Xie Shihao, an octogenarian wishing to share way of life with readers. Blessings to all.

Tuesday, December 9, 2008 at 11 a.m. during Yuletide. Peace on earth and Goodwill toward humankind.

Monday, December 8, 2008

Paul Blustein of Brookings Institution

Don't Trade Recession for Depression: The Ghost of Smoot-Hawley - Published by The Washington Post,Outlook,Dec.7, 2008:

The revulsion against unfettered capitalism has been aimed thus far at the system governing flows of money; it is unlikely to spare the system governing the international flow of goods and services. Think the pledge by the leaders of the biggest economies at Group of 20 summit to refrain from protectionist measures will work? Chinese president Hu Jintao warned that the global financial crisis might tempt other nations to give in to protectionism. My comment: Law of Comparative Advantage must be honored and most economists are for open and free trade. Protectionism caused depression in American history in 1930s.

The Washington Post magazine,Dec.7, 2008 published VOODOO ECONOMICS by Laura Blumenfeld. Larry Ford, a financial planner and shaman, is attempting a massive bailout of Wall Street's soul, one troubled heart at a time. Ponder such subheadlines to understand the happenings lately with religious fervor of faith,hope and charity.

Francis Shieh a.k.a. Xie Shihao,a believer of international trade for the benefits of peoples of WTO nations in the world.

December 8, 2008

Washington Post,Dec.8,2008 and Asian Fortune,Dec.2008

Page A19: US monetary experiment is global in scope and fraught with hazards. Barron's magazine suggested the FED should balloon its credit to an astounding $6 trillion. But too much money and credit might boomerang as higher inflation. It is certainly an enormous intellectual challenge for Professor Bernanke. Here I wish to cite the humor from Professor John K. Galbraith: "There are those who don't know and those who don't know they don't know." Let us wait for the empirical evidence as time goes by. Economics is a science of change and choice. Nobody would impugn.
Page A18: bilateral trade imbalance: China now accounts for half of the annual US trade deficit in goods. It is the fact that American consumers purchase China goods otherwise there is no trade deficit! However,the Law of Comparative Advantage must be honored. Protectionism leads to depression as known in American history in 1930s. During the present financial crisis,consumers wish to get money's worth to save money as common sense.

Montgomery County Executive Leggett visited China recently and signed agreement to promote and strengthen economic cooperation with Gov. Li of Pudong New Area,Shanghai. The delegation to China included Tiger manament LLC; Zaracom Technologies,Inc.;K & Y American Investment Properties; United States Pharmacopeias/Shanghai; Simaomics,Inc.; Law Offices of Yu & Associates; Marriott/Beijing and Qiagen/Shanghai. Published by Asian Fortune,December 2008.

Francis Shieh a.k.a. Xie Shihao,a watcher of economics in action of USA and China. December 8, 2008.

Saturday, December 6, 2008

US-China as" Powerful Model" with reflections

Washington Post, December 5, 2008 on page A21:

US Treasury Secretary Henry M. Paulson, Jr. called the US/China agreement to work together on similar issues in the future as "Powerful Model." The EcoPartnerships include projects dealing with energy efficiency, hybrid vehicles, clean air and water conservation.

Minister of Commerce Chen Deming,former mayor of Suzhou but a native of Shanghai stressed that he would not count on a falling RMB to help exporters, because the cause of the current problem with exports is shrinking demand. He said the exchange rate had been adjusted solely on the strength of the dollar. It is known that the rate is to be determined by the supply and demand of US$ Vs Chinese RMB in the foreign exchange market.

China presses US to stabilize its finances. Chinese VP Wang Qishan urged the US to increase savings rate as part of broader program to strengthen its economy. It is the issue of lifestyle. Would it be possible to change the lifestyle? Food for thought as the simile.

Global Meltdown is described as Shaman i.e. religious person with faith,hope and love.(money?) Washington Post Magazine Cover on Sunday,Dec.8, 2008

On the morning of Dec.7, 1941,67 years ago when I was 15 as a high school student at Hautes Etudes in Tianjin,China,Japan attacked Pearl Harbor and I had to study the Japanese language instead of English. I visited Pearl Harbor in July 1990 when my son was married in Honolulu, Hawaii. That was 18 years ago.

Francis Shieh a.k.a. Xie Shihao. an Honorary citizen of the City of Honolulu,Hawaii at 10.25 a.m.

Friday, December 5, 2008

Chinese automakers in 2009

The North American International Auto Show (NAIAS) 2009 will host at least two Chinese automakers. One makes an encore appearance; a second is a newcomer to the NAIAS.

Brilliance Auto, BMW's Chinese partner, will make its first appearance at the NAIAS BYD(Build Your Dreams) is back for a return engagement.

At NAIAS 2007, Changfeng Motor became the first Chinese auto manufacturer to exhibit in Detroit. For Chinese Pin Yin system of phonetic equivalents,see "A Glimpse of the Chinese Language" www.rand.org for PDF copy free of charge as public service.

Brilliance has appeared at shows in its native China as well as in Europe, where it currently sells vehicles. The automaker intends to eventually sell vehicles in the US. In China, Brilliancd builds the 3 Series and 5 Series for BMW to sell in the country. It also builds and sells its own Zhonghua brand of vehicles. A Brilliande subsidiary builds Toyota models under license for the Chinese market.

BYD is a young firm, established in 1995 as a battery maker. It quickly has become one of the world's largest producers of rechargeable batteries and claims a 30% share of the world's cell phone battery market.
In 2003 BYD entered China's burgeoning car business by buying bankrupt government-owned auto maker Qinchan. While the automaker has established a presence at other international auto shows in China and Europe, the NAIAS is the only show at which BYD has exhibited.

BYD recently got a shot in the arm when American billionaire investor Warren Buffett's MidAmerican Energy Holdings paid $230 million for a 10% stake in the automaker to support its green technologies.
BYD, using its immerse battery expertise, is developing electric-hybrid cars that it expects to sell in China later this year,Europe and Israel by 2010 and eventually North America.

Francis Shieh a.k.a. Xie Shihao sharing such info to the readers of Sino-American Economics for possible interest.

December 5, 2008

Digital Library agreement signed by US and China

The Library of Congress www.loc.gov and the National Library of China have concluded an agreement to cooperate in developing the World Digital Library(WDL). www.worlddigitallibrary.org for additional information.

The Web-based World Digital Library,slated to launch in April 2009, is an initiative of the Library of Congress and other cultural institutions around the world in cooperation with the United Nations Educational, Scientific and Cultural Organization (UNESCO). Other institutions participarting in the project include major libraries from Brazil, Egypt, Iraq, Israel, Russia, Serbia and Sweden and the US National Archives and Records Administration, the John Carter Brown Library and the libraries of Brown and Yale Universities.

The goal of the WDL is to represent major world cultures in a way that contributed to better understanding among different cultures, as well as to serve the needs of scholars and researchers. The project will digitize and make available on the Internet, free of charge and in multilingual format, significant primary materials of many culturess, including manuscripts, maps, rare books, musical scores, recordings,films, prints,photos,architectural drawings and other materials of interest both to scholars and the general public. "A Glimpse of the Chinese Language" is available at www.rand.org free of charge via PDF online.

As a graduate student from China in 1947 with ten of my works listed in the Library of Congress in the fields of economics and China studies,I am so delighted to find out such positive US-China exchanges with global dimension. As a learner in economics,I wish to reiterate the aphorism that the ultimate success in economics is the contribution to be made for human happiness as stated in my blogs.

Francis Shieh a.k.a. Xie Shihao on Friday,December 5 2008

Thursday, December 4, 2008

Washington Post,Dec.4,08 page A21:

US Economy: The Mix - Our mixed economy. Such statement is the same as my past blogs apropos of private sector and public sector instead of "Capitalism" in USA because China is the most populous nation with human capital(human talents) but China is a mixed market economy with socio-economics as China's system.

Mainstream economists have always been pro-market but recognized numerous exceptions. I would name the market failures with externalities as we are witnessing the REAL ECON SYSTEM nowadays. It is rhetoric at best with metaphor as the jargon with humor if detected in the light vein.

Page D1: Economic Weakness pervasive,FED says. Let us watch the events to come as empirical evidence of the changing market system in USA.

Page B2,WashPost,Dec.3rd Dr.Sze is head of imaging and radiology at Children's National Medical Center.(with photo) His Last name is pronounced ZEE. That sounds like Xu in Mandarin. I believe Zee is the Shanghai phonetic sound. The character may be the famous Xujiahui, the commercial district in Shanghai and I taught in a college there in 1945-47. A famous official with the Last name as Xu but would be Zee in Shanghai dialect.

For explanations with comparisons,please visit www.rand.org and request a free copy of "A Glimpse of the Chinese Language" in English from PDF as public service.

Francis Shieh a.k.a. Xie Shihao,a native of Shanghai but my father's Last name is Zia,the Shanghai sound for Xie. However,I used Wade-Giles of Hsieh during the years in a university. But Hsieh is difficult for Westerners to utter such sound so my Last name was changed to Shieh at the University of San Francisco in 1947 and I have been using such official Last name of Shieh a.k.a. Xie in Pin Yin system of romanization. If readers are confused,take a course in Mandarin and Wu dialect at www.Dictyon.net

Dec. 4, 2008 at 10.40 a.m.

Wednesday, December 3, 2008

China has increased position of strength as cited below

Washington Post,Dec. 3, 2008 on page D1,D3:

"With the US financial system strapped for cash and in disarray,China has increased its position of strength. The Strategic Economic Dialogue is about the American dollar problem and the US economic crisis nowadays. The global economic turmoil has sparked calls for China to take a leadership position in efforts to stabilize countries on the verge of collapse." But China is a developing nation with modesty.
"Among the various proposals are for China to take a greater role in the IMF. With its enormous foreign reserves - at $1.9 trillion, the largest in the world - China could buy power in a global organizations that has long been criticized for being dominated by Western nations. China and its neighbors have committed $80 billiion to the effort and there have been discussions about increasing to $150 billion for Asia Fund for Asian neighbors only." China is willing to be a partner for maintaining global economic stability in my view.

"President Obama's new Treasury Secretary, Tim F. Geithner, has had a strong interest in China sine boyhood,when his father served as an Asia expert for the Ford Foundation. Geithner studied Chinese at Dartmouth University and spent at least one summer in China." During the course of time re Strategic Economic Dialogue,I believe the positive actions would be taken for mutual benefit. The smart negotiators should understand that cooperation and collaboration would be the best bet for two great nations and for the world as a whole in the days to come.

Francis Shieh a.k.a. Xie Shihao, a graduate student from Shanghai,China to study Sino-American Economics since 1947.

December 3, 2008 at 12.26 p.m.

Notable Quotation from a Prof.of Economics

Michael Lehmann, Professor Emeritus of Economics:

"Federal authoritiess initiated the real-estate boom by depressing mortgage interst rates. Then they exacerbated conditions by refusing to adequately regulate mortgage lending practices. The result: An unprecedented and unsustainable increase in real-estate values, egged on by greed, skullduggery, and tomfoolery."

I am inclined to concur the above statement with my recollection of the name Greenspan. What do you think? Have a fine recollection and a good day!

Francis Shieh a.k.a. Xie Shihao sharing my instant thought with smart readers.

December 3, 2008 at 7.16 a.m.

Tuesday, December 2, 2008

New York Times, Dec.2, 2008 page A1 and A15

Page A1: Allen Sinai,President of Decision Economics: "It's still arguable whether recession will set a new record on depth. I hope not,but we don't know." Economist Sinai is honest as I remember the aphorism by Professor John K. Galbraith: "There are those who don't know and those who don't know they don't know."

Page A15: Treasury Lead Role in China in flux(fluctuating) My comment: Treasury's role on US economy is in flux as well. I have reason to believe that Tim Geithner will continue Paulson's policy for mutual benefit. Any negative policy actions would hurt both nations. Confucius said:" Do not do to others as you don't want others do to you." It would be "ji suo wu yu,wu shi yu ren." in Pin Yin for such motto. Paulson said that he would expect China to play a part in his life as he goes to China on Wednesday,Dec.3rd for US-China Strategic Dialogue. He admits that he has a very poor ear for languages. In other words,Paulson is in no position to compete with Tim Geithner who speaks Mandarin well. Knowing a language may be an asset in negotiation since issues may be lost in translation. It is said that Adolf Hitler never trusted any translator!

The foreign exchange rate is determined by the Law of Supply and Demand in theory. Howver,China maintains its peg to the dollar which has risen in relation to other trading partners. The financial crisis has driven up the US dollar. Readers may ponder and reflect such outcome as logical consequence.

Francis Shieh a.k.a. Xie Shihao, an octogenarian reader to share thoughts with other smart younger readers with thanks. December 2, 2008 at 1.52 p.m.

EPA Chief Stephen L. Johnson in China

Washington Post,Dec.2, 2008 on page A10:

Chief of EPA Johnson is part of a group of Cabinet officials traveling to Beijing for an economic exchange trip at the end of the week. He arrived in Shanghai for roundtable discussion with American and Chinese businessmen on the importance of sound environmental regulation and consistent enforcement. He talked to students at Tongji University where my niece(my sister's daughter) graduated in the field of architecture. Maybe this university is not the caliber of nearby Fudan University where I lectured decades ago. Reflection about the past history: After WWII,St. John's University had a reputation as the only American-sponsored university that lectures were all given in the English language. Those students who dropped out,then went to Fudan University as the last resort. However,after 1949,Fudan became a top university in Shanghai comparable to Beida with fame in Beijing. I lectured at Fudan and Jiaoda three times decades ago with fond memories. It is good to see the published photo of terra-cotta warriors of Xian playing violin with smiles. Such is another evidence of Sino-American Economics of Negative Externalities i.e. Pollution to be the issue for USA and China.

Francis Shieh a.k.a. Xie Shihao, an avid reader to share happenings of US-China positive relations. Tuesday,December 2, 2008 at 10.38 a.m.

USA Today,December 1, 2008: Read,Listen and Watch

Page 1B Nowadays,it's cool to be cheap. Myself included as a graduate student from China without money but a holder of scholarship and fellowship decades ago. Intellectual and Spiritual "Renaissance" classical influence by the late 1940s!(sic).

The Great Depression created a generation of Americans that abhorred waste and considered debt the devil's playground. Mark Zandi, Chief Economist for Moody's Economy.com predicts a year from now, the savings rate will top 3% and will hit 8% in the next decade or so. My comment: Assuming folks have jobs under the new President's plan? Perhaps folks in USA would learn the Asian tradition of saving under the influence of Confucianism? However,some young folks in Asia have learned to be on credit to keep up the trend of the West via media such as TV but I have reason to believe that they should be aware of global slowdown now!

Page 11A: How to curb college costs? "The Future of Community Colleges" published by the Congressional Record,July 18, 1974 with the vision of saving college costs. Readers can find such article in the public libraries for reference to save college costs.

Francis Shieh a.k.a. Xie Shihao, a lifelong student of Economics to be cost-conscious. December 2,2008 at 7 a.m.

Monday, December 1, 2008

Economist Paul Krugman's article :" Deficits and the future"

New York Times,December 1, 2008 page A25 - Paul Krugman,the 2008 Nobel Laureate in economic science wrote:"Fiscal expansion will be better for America's future if it is in the form of public investment such as roads,bridges,new technologies. All of which make the nation richer in the long run. I cannot disagree with such recommendations more. However,I would add public investment in education and training in the following works:

1. The Future of Community Colleges,published by the Congressional Record,July 18, 1974.
2. Keys for Economic Understanding. 1971. Cf. www.loc.gov online catalog
3. Keys to Economic Understanding. 1976. Ditto

4. Work and Study Cycle Theory. 1978. Ditto

All the above works are relevant to public investment in education and training in USA. Such goal has been pursued in China as well.

Both New York Times and Washington Post,Dec.1,2008 issues cited Chinese President Hu's statement apropos of accelerating structural readjustment for sustainable development involving the human resource as a field of economic growth in the 21st century. Aggregate supply should catch up with the aggregate demand of marketable skills in USA and in China. The macro-view may be reflected from the micro sector of education in the long haul.

Page A15: Defense Department Sustains Focus on War of Ideas in Anti-Terrorism Efforts: According to the proposal, "The government estimates a minimum of two and no more than twelve websites will be needed in languages that may include Arabic,Hindi,Urdu,Russian and Chinese et al. The purpose is to present news, sports,entertainment,economics,politics,cultural reports to targeted readers. Content will provide open and unbiased analyses of major events in the targeted regions and the ramifications of those events on the target audiences. Reporter Walter Pincus maybe reached: fineprint@washpost.com

Francis Shieh,a reader sharing information to other readers with the same interest of Sino-American Economics.

December 1, 2008,Monday at 2.10 p.m.

Washington Post,Dec.1, 2008 page A17

Robert J. Samuelson wrote: "Starting with Obama's economic stimulus plan,will he focus on reviving the economy and relieving the financial crisis? Or will he use the economic crisis as a vehicle to advance a more ambitious social and economic agenda?" My reasoning is socio-economics in USA but we must see the evidece as time goes by. Needless to say,China is involved in global economics.

Elizabeth Economy wrote:This should be China's time to shine. The country is sitting on almost $2 trillion in foreign exchange reserves and post a 9% growth rate this year,probably the highest of any nation. In the midst of a global financial crisis,the world has come to China's doorstep seeking leadership." The writer is a senior fellow and director of Asia studies at the Council on Foreign Relations. But she should realize that China is a developing nation and would not seek leadership but would assume the role of partnership in international community. Perhaps she would learn more of the cultural background of leadership in China i.e. to be modest under the influence of Confucianism. However,she is right in supporting US-China Strategic Economic Dialogue providing a framework for bilateral cooperation on economic,environmental and energy issues as the sequel of the views expressed by the specialist for agreement. I would recommend the study of Chinese language and culture for American specialists to have genuine understanding of China from original source materials in the Chinese language with built-in Chinese culture.

Here is another evidence of Sino-American Economics for folks with insights to make efforts for positive scenario in the 21st century

Francis Shieh a.k.a. Xie Shihao,a lifelong student of economics to detect the common ground of USA and China in the 21st century.

December 1, 2008 at 9.48 a.m.

China and the Next Administration in USA

Washington Post,Nov.30,08 page B5: Beijing and Washington: The Case for a Really Long Engagement - Dec.5 conference sponsored by Outlook and CNA, a non-partisan think tank. Four specialists express their views:

Thomas Christensen,Professor at Princeton University:

US-China diplomacy should build upon current trends, not transformation apropos of political and security affairs.

Orville Schell,Director of US-China relations of the Asia Society:

By collaborating to develop, use and market energy technologies,the US and China will benefit from many aspects of common interests.

Carla Hills,US Trade Representative from 1989-93:

China has become our third largest markekt for exports. US and China interests overlap in critical areas such as global growth,regional security, nuclear proliferation,energy secury,food and product safety, environmental protection and climate change.

David M. Finkelstein,VP of CNA,Director of China studies program:

It serves neither Beijing's nor Washington's intersts to halt military contact at every diplomatic bump. The stakes are just too high. There are many areas where the two militaries could be cooperating for mutual benefit.

My comment: In the name of globalization of peace and economic development,USA and China must work closely in the 21st century especially the fighting of Terrorism and financial crisis in the world. I would strongly recommend to the interested readers to read the details from the Washington Post dated Nov.30,08 page B5.

Francis Shieh a.k.a. Xie Shihao,a blogger of Sino-American Economics with the similar views as cited above. December 1, 2008 at 6.36 a.m.