Increased money risk could cause currency to lose value

Washington Post,March 19, 2009 page A8: The troubled Economy in USA to be reflected to other nations as well. Globalization is the name of the game.

Intervention includes the FED to buy up to $300 billion of US Treasury bonds driving down the government cost of borrowing money. The dollar fell against other currencies as monetizing the debt. Such situation may cause deflation as some economists believe. However, the following condition would pop up over time:

When the economy is recovering,the rate of inflation would occur as expansionary gap in the model.

Deflation as caused by contractionary gap leading to slowdown and the policy is to revive such happening. The trend would reverse according to the events as they come. Saving is encouraged in the macro view but "paradox of thrift" should be understood. Spending is designed to save the economy as seen on the cover of Newsweek magazine:Uncle Sam wants you to spend! To spend is to boost GDP as per the popular line in USA and in China.

Evaluation of Obama Economic Team from National Journal from radio broadcast WTOP on March 19, 2009: Average D or C-low grades. Who would rate such team accurately in all fairness?(sic)

Barry Eichengreen of the University of California, in Berkeley said "I never thought I'd say that in my life but this is the first business downturn since the 1930s that looks like the 1930s." Etiology is the first order of studies everywhere nowadays.

That is the nature of economics. But we have faith,hope and charity toward all those who have been involved in the headlines lately.

American of Chinese descent makes the news as well: -

Gary Locke has little trouble at Senate hearing on page A13: He is the only Chinese American to be elected governor in Washington State and he would promote US economic growth, including the Census Bureau and the National Oceanic and Atmospheric Administration which includes the National Marine Fisheries Service.

There is the common ground with China on the other side of the Pacific.

Francis Shieh a.k.a. Xie Shihao, an interested observer of US and China to be necessarily interwined in the name of global economy in the 21st century.

March 19, 2009 at 2.28 p.m.