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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (42772)	10/4/2000 10:31:43 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 769667

DMA, no, it is not a "book keeping exercise". If the SS buy treasuries, those treasuries will not be bought by the private sector, and thus that excess liquidity will flow into the private sector. As a result, actually you should have pressure on long term interest rates (pressure down, since over the next 10 years $100 Billion per year of treasuries would be acquired by the SS, namely the demand for this asset will increase lowering its rates). If you add to this liquidity partial buy back by the treasury it self, you will see that the private market will be "flush" with liquidity helping economic growth. Or, at least cushion any economic slow down in the interim which other "sinks" off liquidity may cause. Privatization of a part of SS (and let each mom and pop manage its own ) is really a bad idea, even the Ayn Rand type conservative, Greenspan think it is a bad idea. Zeev