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


To: pezz who wrote (5285)11/9/2000 1:00:05 PM
From: Enam Luf  Read Replies (1) | Respond to of 10042
 
Actually,...

repayment of the debt could cause big problems for the markets. All that corporate debt is priced off the "risk free" rate, estimated inflation, and corporate risk. The risk free rate is derived from government bonds. Without a liquid government bond market (free of the effects of government purchases eating up supply) pricing bonds becomes very difficult.

This is not to say that is isn't a good idea to repay the debt, but it is certainly not without risks to the capital markets.



To: pezz who wrote (5285)11/9/2000 4:44:00 PM
From: Hawkmoon  Read Replies (1) | Respond to of 10042
 
Hey Pezz... explain why the US national debt is higher as of November 7th, 2000 than it was on Dec 31st, 1998 by some $57 Billion?

THIS, DESPITE THE FACT THAT WE HAD A $90 BILLION DOLLAR SURPLUS LAST YEAR, AND A $237 BILLION SURPLUS THIS YEAR.

Enter the dates for yourself and see:

publicdebt.treas.gov