經濟,財務,統計學,數理科學與政治評論

Dear American people:

  It is not an easy job to be here. It takes such a long road. But it is the middle point, not the destination. America still has huge deficit and a lot of unemployed people. You still need to fight for it. The US dollar has no reason to be that strong compared with other currencies lately because the USA has 16 trillion government debts which includes 3.5 trillion assets on the book of Fed. America still lacks some big improvement on the job market as the manufacture jobs does not increase that much as some economists expect and the new service jobs are with lower payments. The living standard of USA may be high enough, but it may not be the reason why American people can not have those higher paid jobs. I have to remind you that the China has less than 1 trillion foreign reserves around 2008 but it has 3.5 trillion foreign reserves in 2013. The foreign reserves of China include 1.28 trillions of US treasuries and several billion of US Mortgage backed securities. The most parts of China foreign reserves are those higher-rated debts of the USA. I have to remind all Americans the power of compound interest.

  People are aware that American people may need a fair tax code system which can let people have equal opportunities to make a living in the society. People do not believe the tax deduction you have made can really bring a fairness to all American people. The reason is simple as the increase of the tax base to let more people pay taxes does not mean they can afford it. It just shows the truth that a lot of American people do not need to pay income taxes as they do not earn that much. So in the end, the American government does not collect enough money for a lot of things that American people need, like medicare, social security, education and other issues. It has to be changed somehow as twenty percent American people own more than 75% America wealth now. It is not a good news for the society because it means that ordinary American people can not spend that much as used to be. A greater fortune on the hand of the 20% American people means that the other 80% people do not have enough money to spend. It will deter the value creation process of the USA as ordinary American people do not have enough money for the circulation anymore. It will be a disaster for American people.

  The rich people in Asia, including China, Hong Kong, Taiwan, Phillipins, Malaysia, Indonesia and Singapore, just raise their house stakes in their portfolio holdings in local areas when they earn a lot of money these days. The money has nowhere to go. So the property price in those areas just goes up without the ceiling. The same situation happens on the wealthy Americans in the US. The ten year US treasuries yield went up from 1.7% to 2.7% lately. It shows the wealthy Americans do not know how to invest their money, so the only way to preserve their wealth is to let the yeild of treasuries go even higher to protect their own investment portfolios. A higher yield of US treasuries shows that the stock markets have to perform even better and the bond markets will perform even better after the stock markets reach the limits. It shows how wise those investors and it also let us see the true nature of free financial market mechanism. The wealthy people in the free financial markets are always the big winners. The free financial market mechanism cares about its efficiency instead its distributive effect. The mechanism cares about only how to let the market to be fairness for all participants but does not care about who owns those benefits. We see a lot of poor American people who even can not pay their daily bills or keep the food on the table. We also find that the wealthy American prvivate equity funds buys a lot of US house units and rent them out in a higher rate. That is what the market works in the USA. It shows the inevitable conclusion which lead the wealthy American people even richer and the poor even poorer. It is nothing we can do. 

  People are fully aware that American people do worry about the too much deficits taken by the American government. People do know the compound interst well and it just happens on the foreign reserves of China. It accumulates so much US treasuries and MBS because the wealth is on the hand of Chinese goverment and the US just needs a lot of money to do a lot of irrelevant things for its own people. The USA spends a larger stake on the war affairs but spends too little for the welfare of its own people. Mr. Carter, Mr. Clinton and Mr. Obama spent around 2 trillions government debt quota to help American people. And you lost too much friends in the Middle East who were once your best friends, including Iran.

  To reduce the deficit, the America needs its own people can pay more taxes which means that people need to have decend jobs and stable incomes. It takes time to be there from here today. It seems to be a long road to pay down the deficit which the USA has today. Let's try to emphasize on the employment issue and the tax code issue FIRST. To largerly reduce the US government debt and to have an enough lower unemployment rate are the first two prioity things American have to be.

  After the problems are resolved, then American people can try hard to fix other issues. But the time has not come yet.