My Dear American Friends:

   It is nothing wrong that Mr. Bernanke had done and is doing right now. It just shows that Mr. Bernanke is extending the maximum power that FED can do for this situation and some different scenarios we will face. Mr. Bernanke is with pretty clear mind that the FED should stick with the principle of "Let the market be as stable as possible, and let the inflation be contained and controlled in some range". It is nothing wrong that the Magician Bernanke has made a big difference to the States. Also, it just shows how knowledgeable Mr. Bernanke has and can deal with this kind of situation with so many tools on hands. U.S. dollar is now in the historical low level we have ever seen more than two decades. But your enterprise, especially those larger ones have no intent to move factories back to the States. It just shows two things, one is that they do not  trust the working ability that Americans' worker have, the other may be due to higher salary and higher living standard (including the pension burden and environmental issue) the States has. The oursourcing has its great benefit as it just pay down those costs in one time, you can ask those factories work hard just one time and leave the order to others next time. It is always the big issue that you do not have to pay those environmental or other costs for the greater benefit of your new clothes, toys, computers and other electronics. That is the big issue you have to face. I guess from the point of curency, U.S. dollar is much cheaper, but your structural problem can not let the factories' jobs back to the States (even you have the lower currency rate right now). It is the big problem you have to face!! That is nothing Mr. Bernanke can do as he extends the monetary policy to the extreme already!! And there is no deflation problem the States has, it is wrong to say that those commodity prices falling is the sign or the signal of Deflation (or even the consequence of deflation). It just shows that their higher prices are not sustainable anymore!! 

 

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