Contributing Member of the Legal, Economic & Regulatory Affairs Councils

All News Analyses by this Author

Foreign investments in USA are certain to lose

March 19, 2009

Analysis of:White House: No safer investment than USA | www.usatoday.com

Foreign investments in USA are certain to lose due to devaluation of US currency as a result of mounting deficits. Devaluation is an effective way to reduce trade deficits. US dollars have lost about 20% of its value against Chinese RMB since 2005, which is far from enough.  

What goes around comes around

March 16, 2009

Analysis of:China worried about safety of U.S. debt | money.cnn.com

China is the largest single contributor to US trade deficit. Naturally, it worries the most about US treasury safety. If both sides could not come to terms on that, the problem isn’t going to go away by itself.

market value will become VALUE IN THE AIR

March 11, 2009

Analysis of:SEC won't suspend mark to market - source | money.cnn.com

Book value is foundation of market value. If you separate them, market value will become VALUE IN THE AIR.

All Financial Crises Should NEVER Happen in the First Place and CAN be Avoided

February 29, 2008

Analysis of:Financial Engine Failure | www.cfo.com

Like natural storms, almost all financial storms can be detected and avoided before they happen. Unfortunately, time and again financial crises ravage corporations, nations and the global economy. The cause of that is the fact that professionals have no idea about the ecological and systematic nature of finance. These two most decisive and core aspects of the financial system have never been in the financial education or knowledge, which is outdated, sporadic and out of touch with reality. Thru FinancialTree System, System Finance, and Financial Ecology, I have foreseen every financial crisis and warned the public before it took place, and advised the Chinese government against at least three financial crises, having made the lives of 1.4 billion people financially safer . Following is a recommendation letter to the Chairman of the People’s Republic of China on Dec.3, 2007---Why China should and can prevent the current US subprime crisis from becoming a global financial crisis

Two hands are better than one for China, at least for now

August 30, 2007

Analysis of:China Sharpens Its Focus on Inflation | online.wsj.com

As the United States and other developed nations grapple with aging pain–lack of liquidity and fear of possible global market crash, China tackles with just the opposite–growing pain–accelerating inflation and ever-surging stock prices as result of too much liquidity, RMB appreciation and fast-moving economy. Chinese government will be able to get things roughly under control for a number of reasons, even though it is very hard to do so. To name two: 1)They are much more experienced and have more resources than in the past 30 years when they encountered many much tougher issues; 2) They can use two hands at play. One is market force, which is invisible. When market mechanism fails, they will use the visible one, which is government intervention in the form of government orders, legal action/ requirements or media propaganda. It (two-hand strategy) worked before, it work now and it will work in near future. Remember, China isn’t a REAL market economy, yet.

Two hands are better than one for China, at least for now

August 30, 2007

Analysis of:China Sharpens Its Focus on Inflation | online.wsj.com

As the United States and other developed nations grapple with aging pain–lack of liquidity and fear of possible global market crash, China tackles with just the opposite–growing pain–accelerating inflation and ever-surging stock prices as result of too much liquidity, RMB appreciation and fast-moving economy. Chinese government will be able to get things roughly under control for a number of reasons, even though it is very hard to do so. To name two: 1)They are much more experienced and have more resources than in the past 30 years when they encountered many much tougher issues; 2) They can use two hands at play. One is market force, which is invisible. When market mechanism fails, they will use the visible one, which is government intervention in the form of government orders, legal action/ requirements or media propaganda. It (two-hand strategy) worked before, it work now and it will work in near future. Remember, China isn’t a REAL market economy, yet.

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