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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (22394)	11/24/2004 12:53:54 PM
From: ild	Respond to of 110194

Fed Focus Paul McCulley \| November 2004 A Debtor's Blessing pimco.com Emerging Markets Watch Mohamed A. El-Erian \| November 2004 It's Not You; It's Me pimco.com

To: ild who wrote (22394)	11/24/2004 6:55:45 PM
From: Kailash	Read Replies (1) \| Respond to of 110194

"the assertion that interest rates are guaranteed to rise on account of the exploding budget deficit must be rejected out of hand however. for instance, Japan's cumulative budget deficit as a percentage of GDP is 2 1/2 times LARGER than the US budget deficit. and yet, interest rates at one point fell to just 45 basis points for 10-year maturities, and BELOW zero for short term money." There's a major difference: around 95% of Japanese government debt is owned by Japanese. The US relies on the international financial markets, which aren't known for their loyalty. K