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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: microhoogle! who wrote (508215)	12/12/2003 5:15:38 AM
From: Kenneth E. Phillipps	Read Replies (2) \| Respond to of 769669

Rubin on the effect of the deficit on interest rates. ...the federal reserve model projects that for every increase in the deficit of one percent of GDP, long term interest rates will increase by 0.5% to 0.7%....If the deficit increases by one percent of GDP, long term interest rates will increase by 0.4%. The $9 trillion deterioration in the Federal Government's fiscal position over 10 years...is an annual deterioration of 7 percent per year...Since one percent of GDP will increase interest rates by 0.4%, a change of 7 percent of GDP per year will increase interest rates by 2.8%. Page 363, In an uncertain world by Robert Rubin.