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.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (5320)	6/25/2001 10:03:08 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 74559

DEBT IS GOOD. It all depends on how it is invested. For instance, I would have little difficulty if the US government utilized those SSTF in such a way that if facilitated larger GDP growth by applying public sector funds to private market failure (highway construction and maintenance, or in technologies that would yield future economic spin-offs such as space exploration). Or even as part of a subsidization program for the building of dozens of nuclear power plants that would provide the energy for a change over to a hydrogen based economy. That would be a productive use of government indebtedness, imo. But given the fact that this not what is occurring, and the fact that personal indebtedness amongst Americans is so high, I believe that the money would be better off being given back to the people who earned it. But the US public debt is also a bonus. US Treasuries are considered the safe haven for world capital. When times are tough, the tough buy US Treasuries which are backed by the full faith and credit of the US government (taxpayer).. But if you pay off the debt, there will be no US treasuries and this money will seek a different safe harbor, which imo, would be gold. And seeing gold prosper at the expense of the USD is not something I believe is particularly healthy for an economy. Right now gold is tracking, and sometimes exceeding, the dollar and I don't mind that trend. But when people choose a shiny yellow metal over the economic potential that backs a major currency, we're all in a world of hurt. And again, just look at how US intergovernmental holdings (private debt generally consisting of IOUs to the SSTF) have drastically increased? This is the surplus being spent in the general government budget, being replaced with an IOU that will have to be repaid 10-20 years from now. publicdebt.treas.gov The figures are all there for you to see. And every dollar the government takes from our pockets is one less that the average US taxpayer can deploy to their own benefit. Hawk