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Politics : Al Gore vs George Bush: the moderate's perspective
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To: Hawkmoon who wrote (2599)10/16/2000 10:56:56 AM
From: TimF  Read Replies (3) of 10042
 
Ron, if the government did have surpluses that it "invested" in treasury bonds, and it didn't spend the money, might it just amount to a reduction in the money supply? The bond's eventually payback would amount to a promise to increase the money supply at some future date. In other words it would create deflationary pressure now and inflationary pressure at some point in the future.

Tim
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