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

To: futures speculator who wrote (37124)	7/27/2005 3:33:44 PM
From: NOW	Respond to of 110194

which of those do you think will transpire in the next 5 years?

To: futures speculator who wrote (37124)	7/27/2005 3:45:26 PM
From: NOW	Read Replies (1) \| Respond to of 110194

what do you think will happen to long term treasuries in your printahon scenario?

To: futures speculator who wrote (37124)	7/28/2005 1:32:56 AM
From: Lee Lichterman III	Read Replies (5) \| Respond to of 110194

Thoughts on below...... VII. Summary of Policy Recommendations There is a need to immediately implement a number of important structural measures affecting the global participants. Included in this Category I list of critical adjustments to increase savings, reduce debt and improve current account deficit are: 1. Cut by 15% across the board all U.S. social spending programs. Good Idea 2. Increase U.S. tax rates. only if there is a time limit on it or else Congress will spend it all. Taxes used to be only 10% and with each increase, they just spend more 3. Increase incentives to save in U.S. - consumption taxes. Good idea 4. Devise capital controls such that capital cannot be exported out of the U.S. No way!!! Everyone wants safety valve to guard against devaluation and if they try this, money will leave in droves even if it is illegally 5. Debt renegotiation/forgiveness by countries with cumulative high trade surplus with the U.S. Yeah, right, we can't even agree to forgive the debts of third world countries. You think they will let us off the hook after Iraq and our running the world for the last 50 years. No way they will ever do it. This is a pipe dream for sure 6. Change the Federal Reserve Bank objective function to include a constraint on the size of the trade deficit. Fed has no control over deficits. Who wrote this??? They better learn about finance 101 again. 7. Prohibit sale of highly sensitive technology and defense to any and all foreign countries. Already is law. Hello?!?! 8. Revalue Chinese currency to U.S. dollar by 40 percent. We can't dictate other country's policy. Again, who wrote this?? PIMCO is going to lose a lot of business if this gets out. My kids know more about this stuff than this author and my oldest is only 10 9. Targeted protective tariffs if needed. Yeah, protectionism worked so well leading up to 1929. Sure, let's repeat history. 10. Renegotiate WTO. Maybe but is it really necessary? 11. Prohibit the Fed from purchasing bonds from foreign holders of U.S. debt. Oh sure, lets make it impossible to have a basket for for sterilization. Yep, OK, now I am sure, this guy is definitely a moron. Is there a way to short PIMCO?? All of the above measures are of great and equal importance and need to be implemented as a package. Piecemeal implementation violates the requirement that all participants must contribute to the readjustment of the global economy. Category I initiatives need to be followed by a second set of policy measures that we will call Category II. These initiatives are crucial to the long run political-economic stability of the U.S. economy. 1. Increase U.S. defense spending. Idiot idea. The multiplier on defense spending is low. If we are going to try to spur growth through govt spending, why not use tax funds to build roads, bridges and better multiplier projects? 2. Develop incentive-based programs for youth, education and health. Take funds from programs for elderly. Apparently he has never heard of the AARP. No way any Conressman would touch taking away from the elderly and end their career. 3. Reduce minimum wage in U.S. by 50%. So they can all starve to death? Minimum wage is not as much of a drag as people think. The drop in consumption would be greater than any savings. How about instead, we cut the salaries and options awards for the CEO since the spread between the top and bottom tiers is greater now than at any other time in history. 4. Repeal regressive Prop 13 in California. Good Idea! 5. Tax prosperous countries that have benefited from prior IMF bailout recipient Tax them just as they are finally getting on tier own feet? Dumb and Dumber!! I think this is the first time Brazil hasnt' been in a 5 year crisis cycle. 6. Proceeds disbursed to IMF "equity" holders. No opinion 7. Tax holders of Iraqi debt for invasion "appreciation" and ultimate "occupation" appreciation value. 8. U.S. Treasury needs to extend average maturity of the debt issued. Good idea!!! I never understood why we decided to get rid of the 30 year just as rates were at their lowest in decades. Why not lock in low rates for the long term on our massive debt? OK, I agree with him on this one but he is still an idiot Finally, a few additional measures are necessary to help safeguard U.S. national interests. These measures include: 1. Conflict of interest disclosure by any person providing policy advice. Obvious good idea 2. Prohibit consulting contracts for any public official leaving office for two-year period. Why not 5 years? Good Luck, Lee