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Politics : Idea Of The Day

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To: JEB who wrote (45113)	12/1/2003 6:55:59 PM
From: IQBAL LATIF	Read Replies (2) of 50167

Looks like that ... Net interest payments as a fraction of receipts are of prime importance, even in debt calculations these errors are made; <<What we and our children must face with higher levels of federal debt, however, is higher levels of interest payment on the federal debt. Through the first half of the 1990s, for example about 18% all federal receipts had to be devoted to interest payments on the public debt. The 90s boom reduced this number to roughly 10%, but with the increasing federal deficit a reasonable forecast suggests an increasing level of 17% by 2007. econopundit..>> If non inflationary productivity based growth produces an economy that may have high unemployment like 5 percent and low capacity utilisation like 75-78 percent and produces a red hot growth figures of 5 percent plus, the deficit as a percentage of GDP will shrink and so will be the debt service as a percentage of receipts, it was this point that so far Krugman has been at total loss, his model has got it all wrong but jury is still out..Donald Ruskin hit him well with ECONOMIC CHECKMATE- stammering, incoherent mess post on his site..

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