Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Scumbria who wrote (133678)	2/27/2001 3:02:58 PM
From: pgerassi	Respond to of 1570734

Dear Scumbria: The method of repayment was never taken into account. No one thought it possible. Now that it is and it probably will be done, we need to discuss how we get from here to there. Payment too fast will cause more money, heartache, and trouble than it will ever be worth. This is how I think it should be done. Since the debt has a positive yield curve (long term debt has a higher rate than short term), longer debt should be redeemed first. There should be no issuance of bonds with payoff dates longer than any bond currently issued. All debt repayment should go to the 30 year bonds first. The money should be set aside for any such bonds that would come due within a year. Once that is satisfied, next should come any 10 year bonds, and so on. When we get down to the last public debt (non social security trust fund debt (how much of the interest goes into the trust fund? (you probably forgot to exclude this from your calculations as it is a virtual number))), any money that will not be needed to pay off debt coming due within 12 months (this allows a cushion for short term needs and any deals to get rid of not yet matured debt for no premium), should be returned as increased tax refunds on a percent of income taxes paid basis (the recipients are listed on all those 1040 forms collected on 4/15 that fiscal year). It is likely that no refunds would be made for the first few years as there exists lots of 1 year or less debt. All of this assumes that there is no feeding frenzy at the pork barrel. And IMHO, there is no way to stop it, except by removing the money from sight via tax cuts or budgeted fixed debt payment plan schedule. Pete