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To: David Howe who wrote (15442)	2/22/2002 8:28:28 PM
From: Box-By-The-Riviera™	Respond to of 74559

but the problem at the moment is: that assets are not rising faster than the debt service and debt. ac is unwilling now to adjust to a suddenly imperfect world.

To: David Howe who wrote (15442)	2/22/2002 8:35:41 PM
From: Snowshoe	Read Replies (3) \| Respond to of 74559

It's funny to hear folks extolling the virtues of government debt. Here in Alaska we feel the opposite. Our state government has a $25 billion surplus investment fund, amounting to about $50,000 per capita. There are no state income taxes, and every year the government pays each citizen (including children) a dividend of about $2,000. There are always a lot of politicians and interest groups trying to raid the fund, but people like getting free money in the mail so there is a huge constituency to fight them off. That reminds me, I need to go file an application for my 2002 dividend... <g>

To: David Howe who wrote (15442)	2/22/2002 10:19:01 PM
From: Cogito Ergo Sum	Respond to of 74559

Hello David, << My point of view is that the Federal government should ALWAYS run a deficit. >> Yes, managed borrowing for the future can be very beneficial. Running a perennial deficit however tends to preclude the ability to repay that debt by placing one on the never ending treadmill of debt service. Of course bankruptcy resolves that. fraserinstitute.ca interestingly, as time progresses and assets increase in value we find the mortgage becoming less and less sizable When outflows consistently surpass inflows how can this possibly happen without debt growing elsewhere. EDIT: My house value went down and stayed there for the first 3 years of occupancy. The last three years have seen an increase. The folks we bought it from paid 100K more for it than we did. Assets increasing ? Hmmmmm! No, perpetual deficits are just plain foolhardy IMHO. As far as good debt, I have a mortgage which will be paid off in a few years. I will either sell my house and move to something else or refinance to invest. This would never happen if I always ran a deficit. regards Kastel a cute and cuddly Canadian