Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Greenspan, Rubin & Co - the Most Irresponsible Team Ever?? -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (40)	1/15/1999 9:06:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 309

MB: I've been staring at some interesting numbers on the national debt, interest-rate payments on the national debt, the market cap of the stock market, and foreign sales of bonds (probably from Japan). *The increase in stock market cap is proportional to the national debt* ...that is, it appears that Greenspan is simply monetizing the debt that comes back from Japan rather than raising interest rates, as he wants to drive rates down not up...he can't afford to make the interest payments....and gets predatory-priced components in the CPI to drive inflation down...he legally only has a charter to pay the interest on the debt and maintain price stability. If he can show price stability and the surplus monetized debt goes into the system to increase tax revenue, that's great (the bubble). The problem is that there's no way to pay down the debt since the majority of that money is going into Social Security and Medicare...he can't even meet the payments on the debt unless he somehow increases tax receipts (without offending the masses).... The numbers are scattered at several different sites...I'll try to dig them out and put them in one place. He really has a HUGE problem. The crystal ball is clear...anybody with enough money to pay taxes on their IRA income will not get Social Security. Of course, the Clinton Administration would never stand for a reduction in the size of the government payroll.... Are my glasses in focus?