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

To: GST who wrote (47302)	12/14/2005 12:26:13 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 110194

So we're in agreement. -g- Lynch the politicians, get rid of government and return to an anarchist society of smaller feudal states. Personally, I'm willing to desolve SS and medicare today. I'd do better investing the money they steal from me. I'd rather pay for/take care of Mom & Dad on my own.

To: GST who wrote (47302)	12/14/2005 12:51:17 PM
From: GraceZ	Read Replies (2) \| Respond to of 110194

It's more complicated than this. When someone asks me whether they should borrow or pay for an expense out of their savings or income I have to ask them a whole host of questions to solve the problem. The first question is what will you use the money for? If the use is an investment with a future return, what is the difference between the cost of borrowing and the opportunity cost of using savings? etc etc etc Governments have to answer the same questions that an individual has to ask themselves. If a government can borrow at a low rate, reduce taxes and this results in their economy expanding at a much higher rate than the debt will be paid by a much bigger economy in the future, the cost shrinks relative to the GDP. This can be demonstrated in history by taking two different administrations, one that emphasized lower taxes/higher growth and one which emphasized higher tax rates and reduced borrowing. If you compare the tax receipts and economic growth between the 8 year terms of Reagan and Clinton you can see that Clinton was very good at increasing the amount of Federal income tax receipts than Reagan was. During Clinton's term income tax receipts grew 105%, during Reagan's term tax receipts only grew 60%. But the kicker here is that under Reagan the GDP almost doubled with a growth of 92% and under Clinton the GDP growth was 42%! What happened is not coincidental, taxes directly effect the growth rate of an economy.

To: GST who wrote (47302)	12/14/2005 2:01:10 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

U.S. import prices fall 1.7% in November Wednesday, December 14, 2005 1:45:14 PM afxpress.com WASHINGTON (AFX) - Prices of goods imported into the United States fell 1.7% in November, led by an 8% drop in the price of imported petroleum, the Labor Department said Wednesday. It was the largest decline in import prices since April 2003. Petroleum prices fell the most in almost a year. Imported crude oil prices dropped 6.2%. The 1.7% drop in import prices exceeded the expectations of economists surveyed by MarketWatch. Analysts were predicting a 0.7% decline ================================================================ Obviously this is deflation No I am NOT serious. But every rise is not inflation either and anyone that says so should be calling this deflation, calling the drop in corn deflation, calling soybeans at historic lows deflation as well. Mish