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.
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