Dear American people:

  Mr. Bernanke is a great chairman of the Fed in those years because he is so smart to let the yield of ten year treasuries rise to near 3 percent by using lips service only. The signal effect of the Fed is successful this time, strarted from the March 2013.

  The action also brings out a question is what is the most suitable level of the ten year US treasuries for the USA. Many researchers think the rate should be dynamically balanced for the situation of market. A too low yield may bring some information-asymmetric lousy investments which corporations may make or others may waste on investing, but a too high yield may increase the burden of hoemowners with heavy house mortgage debts. We need a balanced act at this time. The most important issue is that the unemployment rate is still high as American people try hard to adapt themselves into another IT and industrial revolutions.

  It is a cross road that Americans face some big jump lead or revolution about the way of living. The example of mainland China these years is to use the infrastructure to increase its domestic trade activities among Chinese people or others in the country. Building those high-speed railroads becomes a big adventure for the mailnland China when they take a larger burden of those debts in the balance sheet of mainland Chinese government. China ia a much lower developed nation. It does show those infrastructures bring a lot of opportunities for the nation which are lack of higher technologies on daily necessities and well-run financial markets. The lack of higher technology makes China need to import many important key parts such as engines for its manufacture of cars. The lack of well-run financial markets and the failure of USA in 2007-2008 let China feel that it is unnecessary to increase its financial service employment and development. But we also notice that China builds its 24-hours commodities exchanges for its commodities trading. The much lower developed financial market may be the part that the US can try to join or help the future development of China. 

  From the experience of China, The USA may need high-speed railroad system this time. The goal of high-speed railroad system of the US is to shorten the trading cost and to reduce commercial barrier between many important states or cities in the USA. The more traveling between big cities can also be brought out when the USA starts its high-speed railroad infrastructure. Of course it will have substitute effects for the airplane routes, but they can have different effects just like the old day replacement effects between the airplane flights and the traditional railroad transportations. But it brings new opportunities. Those expenditures brings an important question, if the USA can afford it this time when the US debt limit is reached AGAIN.

  All those things just show how vulnerable the USA could be. That is also the reason why the USA needs a stronger monetary policy. I know it sounds strange when we talk about the "vulnerable", which means people are so easy to be scared and panic. But it is not that definition for the wise Americans. For Mr. Warren Buffet, "the vulnerable" means "the opportunity", "the vulnerable" means that there is an enormous money-making chance. If people do know how to take those chances, put their fortunes on one stuff can bring an endless wealth-making process. That is for real. That is why Mr. Buffer always talks about that the US has the most well-function financial market which is nobody can deny. The system makes people feel alive and optimistic about their future. The system is so great that everyone is so eager to be the joint force. The negative thing now becomes the positive one as the wise American people know the pros and cons of its system and know, deep inside their heart, how to use the well-function system well as they wish maybe. It is the magic part of USA where the other nation can't reach.

  We often see the higher property price go on and on in other nations, but we will never see that happen all the time in the USA because Americans always know how to cope with the situation they face in their times and always know to draw others' attention on the new situation they encounter. That is the reason why people, like Mr. Buffet, don't worry about the tremendous buying of the Fed for the US treasuries and the government-sponsored MBSs. Those buying brings the Fed tremendous interest payments and capital gains that can be recycled back to the US financial system. Mr Buffet treats those actions as one great hedge funder tries hard for huge buying those securities and makes a great fortune on those investments, but this time the benefit just goes all the way back to the every citizen of the USA.

  That is what amazes people. That is what the new definition of economics textbook is lack of. Mr. Bernanke just rewrites the economics textbook about what the monetary school of Milton Friedmans once discuss. 

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