Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: BubbaFred who wrote (57816)	12/30/2004 12:46:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

<One must begin that process by appreciating the impermanent, transient nature of our existence. All things, events and phenomena are dynamic, changing every moment, nothing remains static.> Somewhat trite Bubba? Mqurice

To: BubbaFred who wrote (57816)	12/30/2004 5:27:58 AM
From: Taikun	Read Replies (1) \| Respond to of 74559

Received this from GATA today: Chris P. Dialynas, managing director of Pacific Investment Management Co. (PIMCO), the big bond house, has just written a comprehensive study of the international financial situation, "Trouble Ahead, Trouble Behind." It purports to outline a remedy to the explosive imbalances in the world economy. Dialynas' program includes: 1. Cut by 15 percent across the board all U.S. social spending programs. 2. Increase U.S. tax rates. 3. Increase incentives to save in the United States: consumption taxes. 4. Devise capital controls such that capital cannot be exported out of the United States. 5. Debt renegotiation/forgiveness by countries with cumulative high trade surplus with the United States. 6. Change the Federal Reserve Board's objective function to include a constraint on the trade deficit. 7. Prohibit the sale of highly sensitive technology and defense to all foreign countries. 8. Revalue China's currency to U.S. dollar by 40 percent. 9. Enact targeted protective tariffs if needed. 10. Renegotiate the World Trade Organization. 11. Prohibit the Fed from purchasing bonds from foreign holders of U.S. debt. Conscientious as Dialynas is, he may succeed mainly in demonstrating the likely political impossibility of any escape from disaster -- and in raising once more the question of why Pimco, which repeatedly generates analysis like this, arguing that U.S. debt renegotiation/repudiation is inevitable, should be so heavily invested in, of all things, U.S. government bonds. You can find Dialynas' study at the Pimco site here: pimco.com tm