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To: fishweed who wrote (3075)	11/12/1997 1:32:00 PM
From: PaulM	Respond to of 116865

U.S. can't lower already existing debt payments (the return on already purchased bonds) by lowering interest rates. Lowering interest rates now will lower the return on bonds purchased subsequent to the decrease. In times of inflation, or when dollar denominatd securities are otherwise less attractive, continued govt borrowing requires rasing interest rates (rasing the return on the bonds). On the other hand, inflation is a way of reducing in real terms debt already owed (purchased), except for inflation adjusted bonds.

To: fishweed who wrote (3075)	11/12/1997 2:24:00 PM
From: Bobby Yellin	Respond to of 116865

devaluation wipes out personal debt if the individuals get higher wages...they pay off old debts with new money and as you said start a new cycle.. also if IMF starts giving money away to these SE nations..wouldn't you think that that would stimulate infrastructure development and create more of a demand than having money just flow into stock markets and vaporize? wonder if stipulations are being made as to where the money would go..that again could create a new cycle for multinationals in construction and engineering if strings are attached to the bailouts.. getting dizzy..from all the cycles