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Politics : Al Gore vs George Bush: the moderate's perspective -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (2619)	10/16/2000 11:08:47 AM
From: Bruce A. Thompson	Read Replies (1) \| Respond to of 10042

Twfowler, The govt is not "investing" in bonds. They are cashing them out and net increasing the money supply in doing so. Zeev has a point about the evaporation of $$ when the dot coms tanked but the net effect is the money supply has been getting a boost and the debt is being lowered. BT

To: TimF who wrote (2619)	10/16/2000 11:13:48 AM
From: interesting man	Read Replies (1) \| Respond to of 10042

Here is my only thought to this thread. If you want to lose your freedom and want social envy, economic envy, and prejudice then vote for Gore. If you want fairness,freedom and togetherness then vote for Bush. Now back to working hard and trying to make money so I can pay more taxes.

To: TimF who wrote (2619)	10/16/2000 1:39:33 PM
From: Hawkmoon	Respond to of 10042

might it just amount to a reduction in the money supply? That's a good question Tim. Normally money supply is a function of the Fed, through repurchase/sales of treasuries (as I recall).. I'm not a trained economist so many of my thoughts out are essentially my "thinking out loud" and trying to gain a better understanding of the monetary mechanisms that both the Fed and the US Treasury utilize to increase/decrease money supply. As I recall the monetary mechanisms the Fed uses, when it wishes to increase money supply, it purchases T-Bills and the cash that it "creates" to pay for them becomes available to the banking system through approved counterparties. (This is a simplistic description, but here's link: ny.frb.org ..) Might the government issue T-Bills to the Fed for the amount of the surplus, and permit the Fed to determine how those assets are deployed into the economy as any other banker is supposed to do with regard to managing depositor's money? I have to admit that I find myself quickly getting in over my head when it comes to straightening out how the Fed and Treasury interact with regard to the deficit and surplus. But I figure if Alan Greenspan says it is better to pay down the debt with all the surplus amount, then I would be willing to defer to him. But between Bush and Gore's plans, I certainly prefer Bush's tax cut plan. At least taxes can be raised again when necessary. We hardly ever see government spending and entitlements decrease. Regards, Ron