When Federal Reserve Chairman Ben Bernanke frequent media appearances, hard to explain the Fed’s policy of quantitative easing steps of secondary and expectations of large-scale large-scale printing press to lure the American public expenditures, but sent a letter to U.S. Treasury Secretary, the Group of Twenty Geithner Finance Minister said the country continued to show deficits should be expanded national savings.

It really is striking, for the same goal of economic growth, a rescue, but U.S. policymakers since the internal strife, singing “double reed.”

After Bernanke’s hype, we all have to listen to understand that the Fed is to borrow the quantitative easing to reduce the country’s long-term interest rate, so American citizens can afford a house, so now more likely to own their own homes for those who switch mortgage, Province allow consumers to paying the money down to increase consumption. Relaxed financial environment, but also help improve the stock price, so investors have a sense of abundance, the wealth effect in turn stimulate more consumption, the formation of the so-called Bernanke a “virtuous circle.”

But the current situation based on the U.S. economy, perhaps not difficult to understand the starting point Geithner Policy. As a net importer, the United States three decades has been accustomed to purchasing a large amount of goods and services, this part of the number of products is far greater than exports. In other words, the American public has always been a consumption greater than production, and rely on the credit industry, relying on foreigners willing to hold dollar assets to facilitate the formation of the difference between their borrowing.

But now, Uncle Sam, they found that the economic model is no longer reliable because the unemployment rate is constantly high, slowing economic growth. So, how can the United States to become a net exporter? How to export more than import of goods and services and to increase employment boost gross domestic product (GDP) growth target?

The answer is simple, the need to improve national savings. Because, in the other conditions being equal, the role of low interest rates, rather than just spending increases to increase savings, because savings in return very little. This is why Geithner called for the expansion of national savings, the implementation of a reliable medium-term fiscal objectives, in line with the debt level can be maintained and enhanced export performance.

As a result, the Treasury and the Fed is clearly the opposite. So, the Fed’s goal in the end QE what? Is to expand spending, or increase savings? U.S. policymakers may argue that a focus on timing. When the housing market and credit market bubble burst, policy makers are trying to deleveraging, monetary and fiscal policies are committed to creating encourage lending and spending, at least in the short run.

But this can not hide the fact that U.S. dollar kept falling. With the Fed open the printing press, the dollar was shocked to be “one country two systems”, a Federal Reserve dollar is a dollar is the U.S. Treasury. U.S. Federal Reserve has been produced for the U.S. dollar to buy U.S. Treasury bonds, just like the formation of a “beggar thy neighbor” of financial protectionism trend. Thus, the hard-earned dollars in other countries in the depreciation of the dollar in foreign exchange has shrunk dramatically, but play off the United States itself.

Obama has repeatedly expressed the hope to expand exports, export growth driven by domestic employment and economic growth. However, each country would like to do so. Perhaps Obama has realized this, had to argue on the summit of the Group of Twenty, the Fed has done is just a means to enhance economic growth, not intended to belittle dollars to expand exports.

Indeed, the weak dollar, short-term opportunities for U.S. export prices down and increase the competitiveness of domestic enterprises. But policymakers have not explained how they will begin to grasp the impact of short-term therapy when long-term economic ills. Moreover, the ability to create jobs for the weak dollar probably is not as good as everyone says.

At least, if the Bernanke and Geithner are all really want the U.S. economic situation improves, they must first sit down to a cup of tea, take economic measures to speak on that point.

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