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Politics : The Obama - Clinton Disaster
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To: pompsander who wrote (4201)12/31/2008 2:42:11 PM
From: DuckTapeSunroof  Read Replies (1) of 103300
 
"What do you think of the idea of the Treasury coming up with some innovative financing vehicles?"

Depends on the details!

"Talk of a fifty year T-Bond,"

That one is an excellent idea! (Far, far too much of our government's debt is short-term... subject to rapid cost increases if forced to roll-over when rates have spiked. SMART MOVE to issue very L-O-N-G bonds during this global panic that has pushed bond yields down like never before.)

"both indexed for inflation (oy!)"

I have ZERO faith in the way the government calculates the systemic level of inflation that exists in our economy.

They have their thumbs very heavily on the scales.

Consequently have near zero interest in any bond (like T.I.P.s) that are adjusted according to CPI calculations. (Now... if they were to base a series on the P.C.E. Deflator, preferably the "Trimmed Mean Personal Consumption Expenditures deflator" --- which version tosses out the two greatest outlier statistics each month from the average, to smooth out the volatility, and which is calculated by the Dallas Fed - THEN they'd have my interest).

"and regular coupon are being floated."

Another WINNING idea.

(It's CRAZY to tax folks annually on price changes to a bond's principal amount - that have not been realized yet!)
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