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To: Cynic 2005 who wrote (77239)	11/29/1999 5:33:00 PM
From: Defrocked	Respond to of 86076

You sent me a post a while back questioning the similarity or difference between a CB debasing its currency and firm issuing debt in order to repurchase stock. A main difference is that the CB is exchanging promises-to-pay with other promises-to-pay while a company repurchasing stock is substituting debt for a real asset. Neither will get away with it for long as the CB gets disciplined by the currency/bond markets while the firm eventually gets spanked by the bond and equity market. Eventually can be a long time, however, and is often a function of past behavior, market awareness,etc.