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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: JF Quinnelly who wrote (7806)	8/17/1999 7:06:00 AM
From: Boca_PETE	Read Replies (1) \| Respond to 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. P © Copyright 1999

To: JF Quinnelly who wrote (7806)	8/17/1999 11:45:00 AM
From: Investor2	Respond to of 15132

Re: "$1,000 in cash is exchanged for every $1,000 bond retired. The monetary base stays exactly the same as it started. It is just the mix of cash versus debt that has changed." Let's put it this way: $3,000 of taxes are collected (taken out of the checking accounts of working Americans and therefore taken out of the "money supply"), of which $2,000 is paid to the government employees (less payroll taxes, if any, returned to the "money supply") and $1,000 is returned to the person who lent the government the money when he purchased the $1,000 T-Bond. Best wishes, I2