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To: E. Charters who wrote (21415)	10/11/1998 9:52:00 PM
From: The Fix	Respond to of 116764

Good Evening Eric. You've presented a very interesting theory! But it will never fly because of the Tax ramifications involved. The I.R.S. and Rev. Canada collect at every level in the economic cycle. The taxman wants to see corporations make profits along the chain. In a perfect world your plan would fly......But this isn't a perfect world. fIXER

To: E. Charters who wrote (21415)	10/12/1998 6:50:00 AM
From: Solon	Read Replies (1) \| Respond to of 116764

From the Financial Post: "Primakov's government is continuing to appeal to the International Monetary Fund, insisting it can't put together an economic plan until the IMF says whether it will release a US$4.3-billion installment of Russia's loan..." And then the threat... "The one possibility is the printing of money," said Eric Kraus, head of the Moscow fixed-income desk at Dresdner Kleinwort Benson. "The question is whether this is going to be money backed with reserves from the IMF, which won't be inflationary, or an unbacked ruble emission, which will be either inflationary of hyperinflationary." And then... "Imports to Russia fell 45.4% in September from August, reducing its food supply, half of which is made up of imports. This year's harvest was the worse since the 1950s, according to officials." (italics mine) Now we hear them talking tough about vetoing the proposed NATO military strike approval. I don't believe these examples of leverage can be viewed in isolation, do you? Now to your comment: "It is a total waste of time and money to loan equipment, services, money and aid of any kind to foreign countries like Russia, Brazil, Korea, Japan and others. What have they ever done for us? What would they do? Their markets are not open. Their cash is worthless because it cannot be spent in their country to further business, only buy product at their advantage" I think you are taking too narrow a view of this. Although I agree with you in large measure, there are pragmatic considerations: I live in a nice part of town and I value safety and property rights very highly. The more gangs and crime we have in other neighborhoods, the more I need to spend to maintain the safety of mine--and the more my piece of mind is intruded upon by a plethora of unpleasant possibilities. Now, in this community we call the world...we ignore poverty, need, and violence at our own peril. The truth is that a lot of people simply do not have a lot of economic value as producers of goods and services...but they always have value as consumers. It is true that they may have very little to trade for their food, lodging, etc. But what they cannot trade for, they can sometimes take by force. Even when they cannot prevail with cunning, deceit, or power...the defense still requires time, money, effort--and eternal vigilance. As for your economic ideas, they have this drawback: they could only be implemented by a benevolent dictator...and I doubt very much that I am up to the task these days! Solon Machiavelli