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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (10516)	12/8/1997 5:14:00 PM
From: Defrocked	Read Replies (3) \| Respond to of 18056

Mohan, regarding the projected supply tightness in US Treasury debt, I personally believe that the Treasury should continue to borrow heavily from all unsuspecting creditors.<g> The proceeds should be lent to the IMF on a formula basis or in return for complete control of that organization. This would allow the US Treasury to reap the currently huge credit spreads from Government bailouts.<g> The profits from this credit arbitrage could go to reducing our total US indebtedness. And if any government fails to pay us back we simply foreclose and take over!<g> Financial hegemony....gotta love it!<g> Korea, Thailand, Indonesia and soon Brazil, Russia and the former Eastern Bloc,wow! It'd be like owning a whole side of a Monopoly board, including hotels!<g> Now, of course, the Japanese and Chinese know what we're up to, so we have to be very careful not to tip our hand.<g> Don't tell anybody, okay? Or the Japanese may just dump all our bonds so we can't get away with it.<g> PS:I'd shouldn't have had that double expresso this afternoon.Whew.

To: Cynic 2005 who wrote (10516)	12/8/1997 8:14:00 PM
From: tekgk	Read Replies (2) \| Respond to of 18056

>>1997 budget deficit was estimated at around $22 billion September 30, 1997 $5,413,146,011,397 September 30, 1996 $5,224,811,939,135 Increase $188,334,072,262 I don't see why the article worries about a shortage of bills bonds and notes. 188 billion in new debt was issued when the federal government claimed a 22 billion dollar deficit. Since the economy will grow at least 1% slower in 98 than 97, thanks to SEA, a shortage looks like the least of our problems. Someone will have to come up with 57 billion for the IMF just for Korea alone. If China's real estate continues it's current slide, China will be happy too sell lots of US paper to anyone who is worried that there might be a shortage (200+ billion). Then there is Japan (800+ billion) with it's woes and Europe who will dump some dollars if the Euro is even mildly successful (many hundreds of billions if they capture 15% of the worlds reserves). I am not saying that someone will dump, but if one of these major players does and there are losts of reasons why they might, then others must dump or they will have to watch their investment go down the toilet. The real deficit is actually about double this number since social security funds for the future are being spent as general revenues and don't even appear in these numbers (they appear as special notes in a fund rather than as treasury paper). If the government was forced to report deficits like real businesses and account for future claims for social security as the population ages ... forget it dumb idea -g-