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Pastimes : The New Qualcomm - write what you like thread. -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (1804)	6/27/2000 9:09:00 PM
From: Maurice Winn	Respond to of 12231

Actually, I got it wrong. The Fed CAN print a lot more money to spend AND get higher interest rates to tax for a BIG gain in the government spending power. It's just that there's a lag. Say they print another $1tn, which they spend on themselves and hobby horses, that causes inflation, which causes higher interest rates as lenders require higher interest rates to hold money and lend it out. The government taxes the higher interest rates and gets to keep the inflation component in entirety! Initially, suppose tomorrow they announce they have another $1tn to lend and spend, then interest rates will drop as the flood of money goes looking for a borrower. But then a lot of money goes chasing not many goods so inflation takes off and voila, heaps of yummy interest rate taxes as interest rates rise. Overall, I think they maximize their revenue by keeping things fairly steady and economic activity pretty smoothly increasing and that seems to be the plan rather than short-sighted monetary grabs which people seem to accuse the Fed of, and some maniacs even accuse them of trying to destroy the economy. Which is simply silly. It all looks pretty good to me. I think we can expect permanent printing at a nice comfy level and inflation aimed at around 3% as a fee for running a monetary system. No worries and Dow 16,000 Feb 2002 as a result. Mqurice

To: Maurice Winn who wrote (1804)	6/28/2000 12:05:00 AM
From: Eric L	Read Replies (1) \| Respond to of 12231

Mq, *New Zealand ISP kicks up stink over spectrum* Marion Rae Reuters 26 June 2000 The New Zealand government said on Monday that it would defend any court proceedings brought against it by Internet Service Provider (ISP) Ihug over a planned auction of radio spectrum for mobile telephone services. Ihug said it would seek a High Court injunction to force a judicial review of competition rules for part of the government's July 10 auction of 2 GHz radio spectrum. The privately-owned ISP said it wanted existing mobile telephone operators - Telecom Corporation and Vodafone Pacific - prevented from purchasing all the second generation (2G) spectrum on offer in the auction. The government has ruled that no one player may purchase more than one block of spectrum out of the four set aside for third generation (3G) mobile services, including sophisticated multimedia uses. But it has ruled out setting aside spectrum for a new entrant for 2G mobile telephony. This spectrum could be available for digital cellphone use immediately after the auction. Acting Minister of Communications Trevor Mallard on Monday confirmed the decision not to introduce a competition rule for 2G mobile spectrum in the auction. "A cap would not guarantee that a new entrant would obtain the clearest spectrum at the auction," he said in a statement. "While it could be desirable for a new entrant to provide mobile services prior to the introduction of 3G services, it is uncertain whether an effective competitor can be established in that period.. This is because of the high level of encumbrance in these bands by fixed service operators," Mallard said. The government said that further delay in holding the auction could hamper the introduction of high-technology services and harm New Zealand's credibility with international investors. Mallard said the government had given "full and fair" consideration to submissions from Ihug on the matter. "I am confident there are no grounds on which to base a judicial review of the government's decisions," Mallard said. Ihug said the government strategy was seriously flawed and would probably prevent new players from entering the market now. "Third-generation technology is still under development and may not be ready for at least three years," Ihug director Nick Wood said in a statement. "Without a similar cap on second-generation spectrum, new and innovative bidders like Ihug are likely to be shut out. Real competition would be delayed for at least another 2-3 years, allowing major players like Telecom and Vodafone to continue to dominate." The government also faces claims for a share of the spectrum from some indigenous Maori. They too have threatened to take court action over the upcoming auction. The government has offered Maori discounted access to one of the spectrum blocks up for auction but has rejected claims that Maori are entitled to a share of the spectrum. Government officials have estimated that the auction will raise NZ$50 - NZ$200 million, but market economists' estimates range from NZ$200 million up to NZ$2.5 billion. ¸ 1999 Reuters Limited. All rights reserved. << - Eric -