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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: JF Quinnelly who wrote (7806)8/17/1999 7:06:00 AM
From: Boca_PETE  Read Replies (1) of 15132
 
JFQ: With the retirement of a $1,000 Gov't Bond for Cash, future cash infusions into the private sector for interest that would have been paid on that $1,000 (had it not been retired) would be lost. Thus, after $1,000 in cumulative saved future interest (break even point), the cash originally injected into the system to repay the bond (which increases high power currency) would be recovered (sopped up) and future interest savings after that point would represent a net cumulative savings (reduection in high powered money) - when the entire bond retirement process is viewed in isolation. This is the point I was trying to make.

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