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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (75169)	2/4/2000 9:24:00 AM
From: Earlie	Read Replies (2) \| Respond to of 132070

MB Gang: A bit of primary arithmetic with respect to Slick's comments about buying back the debt. - Reported corporate profit growth has been tanking for several quarters. Corporate tax receipts have diverged dramatically from reported profits (i.e. falling). - Personal tax receipts are up but only marginally. - Capital gains tax receipts have exploded. - U.S. total debt is still rising annually (up $110.0 billion this year) and now sits around $6.0 trillion, with more than a third of it held offshore. (What"surplus"?) We have already experienced four interest rate increases, and it does not require massive intellect to see another full point rate increase coming our way this year (a big "differential" is required to keep those treasuries offshore). What does that work out to as far as a rise in the costs for the U.S. government on a year-over-year basis, just to cover the increased interest costs? ($6,000,000,000,000 X .02 = WOW!) Now factor in a crunch in the market that cuts off all those capital gain dollars flowing in. Best, Earlie