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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (28380)	1/12/2012 8:59:55 PM
From: robert b furman	Respond to of 222721

Nah, Cuz if they did we'd sell it to em. I suspect in the fullness of time - those buying 30 year tresuries at 3.00 % will not be holding auctions to bidders wanting to pay above face value. If so - I will be Way wrong !! Bob

To: sandeep who wrote (28380)	1/12/2012 10:13:56 PM
From: Sam	Read Replies (1) \| Respond to of 222721

Say, we sell all the debt we are going to need for the next 10 years at low rates and not issue any debt again for the next 10 years. That would be nice if it would happen that way, but we're not going to "sell all the debt we are going to need for the next 10 years." Bills and notes come due, they will need to be rolled over, and even in a best case scenario, we will be generating new debt. Plus, you can be absolutely certain that if by some miracle as happened in the late 90s we get to a point where the budget is balanced, there will be new screams that we are being over-taxed and we "need" yet another tax cut. Plus the social security fund won't be generating a surplus in a few years as baby boomers retire (it barely does now, in fact it may not with the reductions in the payroll tax that are being used to try to pump the economy and avoid recession). And these older people will be using Medicare more and more. If the Republicans do manage to win the both the executive and legislative branches next year, they will be primed to privatize medicare. But if they stick to a variation of the so-called "Ryan Plan," they will allow people over about 55 or 60 to stay in Medicare. That will be disastrous. More and more people will be in the program but fewer and fewer people will be contributing to it, hence it will generate still more deficits. The Ryan Plan is completely nuts from a fiscal POV. Not to mention the fact that Republicans want to reduce taxes over and beyond even the Bush tax cuts, and are on record as saying that reducing taxes don't require any offsets. Like magic, reducing taxes and regulations will lead to a booming economy and higher tax receipts, they claim.