Wall Street Journal,May 28, 2009 page A1,A2 and A15

WSJ,May 28, 2009 page A1,A2:

To wit: "The market is looking at the over $ 1 trillion deficit and how we'll finance it and concluding it is too big to finance without FED assistance. But FED assistance is causing inflation worries, " says Bianco president of Bianco Research.

"Moody's investors service affirmed the USs triple A rating on Wednesday, despite significant deterioration in the US government's debt position. Moody's identified the dollar's underlying strengths. The global role of the US currency also contributes to the ability of the economy and government finances to rebound," said Moody's VP Steven Hess.

Such situation would be very timely for Treasury Secretary Geithner's visit in China June 1 to June 2,09 to encourge China to hold US government securities as investment. This is my rationale for mutual benefit of two countries namely: USA and China

Page A15:

"Beijing wants a strong dollar" by Zachary Karabell.

Karabell is the author of "Superfusion: How China and America became one economy and why the world's prosperity depends on it." The book is to be published by Simon and Schuster in October 2009.

To quoe passages of the article: -

"As the largest trader of US debt, the Chinese government is restless as the $2 trillion in foreign exchange reserves it holds fluctuates primarily based on the management or mismanagement of American financial institutions. Any action taken by China to imperil the economic stability of the US would be an act of mutually assured destruction. The challenge is to see benefit rather than threat in the economic relationship." Positive or otherwise in terms of globalization as I would comment about such problems in the 21st century.

Francis Shieh aka Xie Shihao on May 29, 2009 at 2.52 p.m.