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To: GraceZ who wrote (5401)9/18/2002 10:35:02 AM
From: GraceZRespond to of 306849
 
Its been pointed out to me, thanks Bob, that the public debt was lower in year end 2000 then it was in 1999. I think that was the year that the powers that be were concerned about problems that would occur if the debt disappeared completely! Such optimists. -vbg-



To: GraceZ who wrote (5401)9/18/2002 10:40:24 AM
From: zonderRead Replies (1) | Respond to of 306849
 
Thank you for the link.

Try as I may, I could not see these two data sets on the same graph, for comparison:
1) Additional public debt, issued by quarter (not the cumulative (total) debt, as shown in the link you have given)
2) Inflation

I accept, of course, that interest rates are highly dependent on inflation expectations. It is, however, counter-intuitive for me to imagine that the increased need for borrowing would not result in higher interest rates for T-bills. Supply-Demand relation, as well as a higher perceived risk driving interest rates upwards.