Since many of us have concerned how current market condition is, and what direction it is going in the coming quarters. In my personal view, we have 2 wars: Deflation and Inflation.

First, let's basically talk on what cause Deflation: Good, services, and jobless.

What happen to all three? They are swiftly decreased as consumers cut off their habit spending. Why they do that? They are poorer when their assets are declined, living cost are too high, plus holding unstable jobs. The outcome will limit all the good, services, and jobs. Then, why we have Inflation? Government injects too much money into system to bail out the death cats (that was what they thought, but to me, the cats were not death), and to stimulate the good, services, and jobs as government's expenses.

Do we see problem here? Inflation raises the living cost incidentally. This reduces the consumers spending. Why do we worry it? Because our system is counting on their spending, and the low and middle classes are our main stream.

We don't produce well as China, Japan, and German recently. We have so much more services than the good we make.

If the government stops spending, our necks are chopped off. But if they keep spending as much as they can to stop the downstream, they can save a few with the cost of all our next generations. These are a few basic instances I list to have all of us understand our situation.

Next, let's move to our market direction. With the massive spending, we need to borrow money (don't get confuse borrowing is different than printing, they are similar). We must call investors from internal to external sources to lend us. What do they get from lending us? They ask for securities and interest. Securities are currency, policy, and system warranty. Interest must be higher than inflation rate. Do we see problem here? With the inflation rate goes up, we must pay higher in interest rate.

Then, we start seeing big conflicts here. Higher inflation plus higher interest rate, both force the market down badly as businesses, consumers, and all other financial terms ( good, services, and jobs ) are all in correlation. Then, this swings back to securities question. Our currency is down to depression as high inflation rate. Policy is rapidly changed as we try to patch here and there as we have lately seen. System is in trouble as higher debt with insufficiency budgets.

We are now pushing these wars in hope and expectation of recession would be sooner cured with little higher inflation rate. This hope and expectation are counted on current global trading crisis which might turn down the good and services costs, plus investors will finance our debt.

Have we ever asked ourselves when the investors don't see much safe and profit in this investment sector, what are they going to do? Flow that huge money into commodities, and other stable currency since daily living requires standard commodities and better returning currency while most other sectors are in global darkness. This extreme flow must cause higher unpredictable costs to all sectors.

What would be next calling problem? Society corruption and revolution are exits, and the costs are too expensive, and unaffordable. All above information is just a few BASIC POINTS in causes and effects what we are having and dealing with now and later. Now, the question is how do we fix our current and later problems without stepping on the above basic points which may cost more than original problems we have? I will hold it to play last.

Mistake after mistake!

Time to recall the ideas of big manufactures were encouraged to move to china for profit's mass. That was from Bill Clinton administration. Then house is affordable to everyone was from George W. Bush administration. Now all Americans should have health coverage from Mr. Obama. These ideas were not bad, but why they were failed to succeed as the last once could be repeated?

The first failure because of we failed to form other stable sector from the once we removed. This empty space was used to fill with unstable dot and services. Clinton was very lucky he did not pay for that mistake, but W. Bush got it all. Bush idea was not too bad if most Americans had stable jobs with strong long development growth. Unfortunately, he did not know what was going on around him.

Now, all Americans are placed in health reform bet. The idea is not bad, but the proposal structure is:

The first thing we need to do in health reform is to ask ourselves the basic questions: Is the cost we currently pay to receive treatment too much? Are we satisfied with the treatment for every dollar we pay? Are the cost and treatment in controllable with current and later budgets? We all see the health cost is too expensive, and we all disappoint with the services. Why? Monopoly, cheating, and robbing are happening everywhere in health sector, from corporations to executives, and physicians.

They are definitely out of control, and our current budget cannot afford to allow Obama's health reform proposal structure by injecting more money into an uncontrollable dark hole. In order to achieve the health reform idea successfully, we first need to organize this sector free of frauds, and organize them systematically. Since fraud is limited, then the cost and service are in equilibrium. Then we can mass out its volume to lower cost.

With current economy and budget, we cannot afford to mass it out unless other sectors are also in special reform with new invention tools. We all know he wants to have a best drive to accelerate the economy out from recession. Sorry, a bad design bike cannot drive you up fast, Here a simple mark to help us exercise our logic thinking,