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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (246)	10/9/2000 6:24:51 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 435

Supply side and demand side economy? How were they planned? Supply side economy is the money the government pumped into the economy. We planned the budget being the tax collection; then we try to save money as we spend into the year. Many entitlements are reduced when fewer than anticipated applies. Government employment is reduced by productivity improvement. Treasury bills and bonds are repo-ed; so interest payments are voided. For more order of magnitude discussion: Message 14486799 Demand side economy is planned by holding status quo(such as 900,000 new homes being built this year), and then added the profits generated to spur 9 dollars for every dollar invested into the economy. Next year estimated venture capital investment into internet infrastructure will be $216 billion to achieve $2 trillion additional real growth in the American economy. However, much depends on the control of Crude futures to a realistic valuation. It has to be based on the depletion of crude oil yielded by the core of the earth. Water replacement of crude is currently of national security in the United States. Progress in terms of scientific achievement has been impressive so far replacing crude with water dilution. Lower cost of gasoline is possible with a maximum of 85% water at 87 octane and without any crude oil. Some day the fuel technology will be disassociation of water into hydrogen and oxygen; then the recombination happens, while burning hydrogen along with oxygen will recycle back to water. No supple shortage is envisioned for fuel. On the other hand the FEDs' raising of interest rates may dampen Wall street valuations and create a situation where tax collection may reduce so much that tax cut will be utterly impossible. FEDs is expected to reduce rates before hard landing happens and before tax collection on main street will also be a problem. So, things are in control as long as we adjust before hardship happens.