China's $2.4 trillion fun, a stupendous amount of opportunities for all nations

Washington Post, January 25, 2010 page A17: "...Two third's or more of China's reserve are estimated to be held in US dollars.

China's huge reserves - invested in US bonds - are cited as one reason for the low interest rates that brought on the financial crisis. China has no desire to substitute the RMB for the dollar as the primary global currency."

Wall Street Journal, January 25, 2010 on page A18: Andre George of Paradise Valley, Arizona wrote to the Editor: "Let's face it, China could buy all US gold reserves by simply cashing in a fraction of its Treasury bonds. A sobering thought indeed."

My comments: Buying and selling of products would be normal operations in business but risks would be greater in sales of weapons. The reason is clearly obvious: Wars yield destructions and peace is the final goal for humans on earth.

Both USA and China and members of the Security Council of the United Nations to seek peace and economic development in the 21st century.

Page C1:Wisdom from the East to advise the West: Peering into the future- Henry Hu, now working for the SEC to monitor financial risk, warned in 1993 about problems with derivatives with his insightful vision. He has made a specialty of figuring out how finance can go awry in unexpected ways. "It's the low probability catastrophic events that can kill a bank." David Bookstaber, another critic of financial innovation told Congress that derivatives are vehicles for gambling and he has urged a flight to simplicity in financial products.

In my New Year's Resolution with the succinct equation: 4S-2D=RCA

S- Simplicity
S- Sincerity
S- Serenity
S- Serendipity

D- Diversion
D- Depression

R- Renewal
C- Compassion
A- Amity

The above philosophical acronym with annotation may be food for thought for all readers for Sino-American economics in the proper direction.

Francis Shieh aka Xie Shihao,a lifelong student to learn the wisdom from other thinkers to share thoughts with readers of Sino-American Economics in the positive scenarios in the mundane world.

Tuesday, January 26, 2010 at 1.18 p.m.