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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (190293)	6/27/2006 3:55:51 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 281500

Your stuff about increasing debt on purpose seems a bit far-fetched. Maybe so.. but I think the theory is sound. Had Bush continued to maintained an effort to preserve a balanced budget, there would not have been sufficient PUBLIC government debt available to absorb the outflow of money from the equity markets (domestic and globally). And thus, 10 year note yields would have dropped even more (same supply, increased demand equates to lower rates). We also had the advantage of KNOWING that Japan and China were essentially "trapped" into purchasing US government debt in order to preserve their currency advantage (and thus, preserving their trade surplus). If they actually DID that then I'd like them to allow my grandsons to take their grandsons OUTSIDE in 20 years to dicuss it. Maybe your grandsons might care to take Clinton and Gore's offspring to task since they were the ones who try to sell the "lock box" snake oil. They tried to convince us all that surplus social security revenues would be placed in a "lock box" and not spent. But they forgot to mention that the only financial instrument the SS Trust Fund can invest in is Government debt. So when they run a surplus over an above actual SS annual expenditures, that additional revenue is "given" to the government and IOUs placed in the SSTF as part of the government's "private" debt (called intergovernmental holdings). These are the "unfunded" liabilities you're referring to. publicdebt.treas.gov So running a surplus in SS is just another means of increasing the overall governmental budget. Hawk