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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (10098)	2/27/2001 6:10:47 PM
From: Bosco	Respond to of 14638

<ot>Hi Dave - thanks for the webpage. For argument's sake [a friendly one, of course <g>,] the page did not include the rate of increase vis a vis the GDP growth, suplus etc. Maybe we had different metric in mind in our previous exchange. What I ve in mind is the debt growth relative to the economy, not in absolute dollar term. Minor difference not withstanding, I am also weary of the $1.3 trillion tax cut price tag. While I may get some [best if they would allow me to deduct all my capital losses in the stk mkt in one fell scoop <SG>!] I truly believe a moderate tax relief for the the middle and working classes are a better way [I guess I bought former Sec Rubin's argument.] best, Bosco

To: Dave who wrote (10098)	2/27/2001 10:10:52 PM
From: Harry J.	Respond to of 14638

Dave - OT of NT, but I got curious. The link you gave, <http://www.treas.gov/opc/opc0019.html>, gives us U.S.dollar amounts for "Gross Federal Debt" but doesn't give us a definition of "gross Federal Debt". Hence, I can't tell if it includes future obligations and outlays, such as Social Security payments, Medicare payments, perhaps projected payouts on FHA and VA home loan guarantees, Civil Service Retirement payouts, etc. In short, I'm not sure that the term, "Gross Federal Debt" is the same thing as "National Debt" held by the public. The online U.S. Government Printing Office website has the 2001 Budget of the U.S. posted. Table 4-1 'Federal Government Financing and Debt' at <http://w3access.gpo.gov/usbudget/fy2001/guide04.html#Surplus and Debt> compares 'Federal financing' including the budget surplus estimates and the Social Security lockbox trust fund to 'Gross Federal Debt' which has two parts: Debt held by government accounts and Debt held by the public. Currently, the public holds 2/3 of the $5.6BillionUS in debt, and the rest is held by "U.S. Government accounts". And while estimates show the 'Gross Debt' is $6B+ in 2005 as you said and the Treasury OPC page states, more than 60% of it then will be in U.S. Government accounts, and the amount held by the public will be less, in dollars, than the public holds now. Maybe tomorrow at work while I'm doing nothing else, I'll figure out what that means. For example, does it mean the U.S. Government is financing its debt by selling these obligations to the trust funds it manages (like Soc Sec, Medicare, government retirement funds, highway trust funds, etc.)? Said another way, was former Senator Moynihan correct? Regards, Harry J. PS - I told you all this was OT. Please comment privately, if at all.