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Politics : Formerly About Advanced Micro Devices

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To: TimF who wrote (224647)3/17/2005 1:49:33 PM
From: combjelly  Read Replies (1) of 1572503
 
" They aren't buying $400 billion plus of treasuries to cover the deficit."

True. But they are buying a large enough fraction to where it has a major impact on the interest rate.

"When they refuse to buy whatever level they are buying then interest rates go up."

Brilliant. You and DR are batting a 1000 on this one, can't slide anything past y'all. And what happens when the interest rate starts to go up? Again, we have recent history as to what happens. And there is no reason to expect it to be different, I don't see where politicians are any more forward thinking than they were in the 1960s. There is every reason to expect it to be worse, the deficits and the debt are a lot higher, even when counted in constant dollars. This isn't rocket science, it isn't even theory any more. The only theory, and it is more of a wild ass guess, is that deficits and debts don't matter any more.
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