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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (12320)	1/30/2003 9:04:17 AM
From: Mike M2	Read Replies (1) \| Respond to of 89467

Jim, re: for every $1B in GDP generated now, we need $4.5B in new money created this figure is staggering and mingboggling to me I see this ratio as part necessity part choice. Yes, it is true that debt must grow at an ever increasing rate in order to maintain its stimulative effect but the number is also influenced by behavior- corporations engage in mergers and acquisitions ( this changes ownership but does not add to the nations capital stock) and share repurchases - IBM is a great example. Over the past decade we have seen a considerable amount of debt was/is not used for productive purposes. mike