經濟,財務,統計學,數理科學與政治評論

My Dear American fellows:

  I do not suggest to stop pruchasing bond even I love to see what happens. But I guess right now the Fed should do is to let the operation twist(OT) go all over again, to exchange the longer-term US treasuries with the short-term ones. The idea behind is to lower the mortgage burden of US homeowners and it can let them to shop, to invest and to have a good time. The idea behind is to let the US society to have more money flowing between people in the States and everyone can get some benefits. My dear American people, now the policy of "beggar your neighbor" is not quite good these days as you still have higher unemployment rate and lower saving rate. The only way to do is to distinguish good ones from bad ones and persuade people to invest in those nations that are more American-like. I know people here will be afraid to hear that because we think we can not survive in the circumstance of appreciating currency. People in our own nations love to see the depreciation of our own currency as the South Korean Won depreciates a lot these days. That is the extra favor I need you to give us. Because we just can not help US and against Korean Won at the same time. If you do realize those conflicts between TWN and KRE, I guess you will understand how come we can not appreciate our own currency this time.

  I still think the Fed should stop buying bonds but exchange them again. The goal here is to let the mortgage rate to be accomodated in some tolerable range. Until the economy just gets even better, then the Fed should stop doing those kind of things like QEs or OTs anymore. Or you should come out with some new ideas to help those homeowners. I think you have to understand people can buy the house shows they have some consumption abilities. They should be treasured instead of be abandoned.

  The risk behind OT seems to be the pressure of defaltion, but as you know the commodity prices just go down and down. It is inevitable as China just want to change their ways of living from the fact that the USA and the advanced European nations just can not absorb too much cheaper products anymore. So the deflation pressure will happen in the emerging markets but it gets little chance to happen in the States. The reason behind is you have bigger service corporations and industries. And to lower the mortgage rate is all you need to do NOW. To accomodate the mortgage rate in some range should be the first priority of the Fed.