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

To: Hawkmoon who wrote (5269)	11/9/2000 12:51:54 PM
From: pezz	Read Replies (2) \| Respond to of 10042

<<you can't pay down the debt to any meaningful degree without severely distorting the markets.>> Huh???....Explain please......It is creating the debt that has distorted the markets.....paying it off will unwind the distorted condition of higher interest rates. Interest rates should reflect the supply and demand for investment capitol between members of the private sector.Interest rates are artificially high when the government is a major participant on the borrowing side. <<the US govt as a annual buyer of $200 billion in T-bills and it will result in conservative investors turning to guaranteed returns in T-bills, and away from AAA corporate and mortgage bonds>> Nonsense!!Government buying back bonds will lower rates causing investors to turn to corporate debt instruments for yield <<", taking in surplus revenues results in depriving the private markets of capital they require to function.>> Paying back the debt does not "take in surplus revenues" . Exactly the opposite. Borrowing by the government takes in revenues .Paying off the debt returns the tax dollars collected to the private sector in a manner that lowers interest rates thus making more money available for business to use for capitol expansion Contrast this with a tax cut putting money into the hands of consumers potentially raising inflation <<But in sum, there is just no way they can buy back $200 billion in annual debt from the public without distorting the strength of the dollar to the detriment of the Euro and Yen.>> Say wot?? Buying back debt will lower interest rates thus raising the value of foreign currencies not lowering them. You practicing fuzzy economic theory here Ron. Stick to politics.....I know economists Ron and you ain't one!