R. A. Hettinga wrote:
> ...as the so-called risk-free investment, how are we going to do our Net
> Present Value calculations?
> ;-).
> Cheers,
> "Next thing, a synthetic numeraire?"

Maybe. 'cause who needs T bills?

Gold is money. There is a big gold banking industry out
there. It's on the secretive side so I can't give you 
numbers. Like any money or currency, it has it's interest
rates. In gold's current case they are called lease rates.
What's the matter with the 30 day gold lease (interest) rate?

It has a yield curve (currently inverted, did you 
notice the current price pop?) just like US government 
debt has. Although maturities go out to 10 years instead 
of 30.

If history and human nature are any guide, and they're big
ones for me, the 30 day lease rate should replace the 30
day T bill rate some day.

Almost all of the world uses non backed fiat currency. The
world has never seen this before Brenton Woods in 1971. Fiat
currencies are fraud and theft. How long do you think this 
can go on, on such a massive scale? And the current Yen carry 
trade, too.

> -------
> http://www.nytimes.com/2001/02/27/politics/27BUDG.html
> February 27, 2001
> Bush Alters Debate on U.S. Debt
> WASHINGTON, Feb. 26 - In his address to Congress on Tuesday night and in
> the budget plan he will unveil on Wednesday, President Bush will seek to
> put the nation on a course to pay off $2 trillion of the national debt over
> the next 10 years, 

The really funny thing about this is that no recessions are allowed
for in the GAO's estimations.

<big snip>

> White House officials said their position is not the result of a political
> or a policy decision, but a reflection of the fact that a portion of the
> debt in the form of a variety of bonds is not easily redeemable,

Right. China owns about .4 Trillion of US government debt. That's
a club they're holding over the head of the US government. Can you
imagine what would happen to interest rates and economic growth,
not just in the US, if China started seriously dumping that stuff
on the market? 

> "They're talking about raiding the Social Security trust fund to fund

> privatization in part," said Senator Kent Conrad of North Dakota, the
> senior Democrat on the Senate Budget Committee. "We say, `No, no raid on
> the Social Security trust fund.' "

See? More legalized fraud speech. There is no SS trust fund in the
US. Both political parties do this. 

Ponzi must be wide eyed at the scale governments have taken 
his scheme to. http://www.mark-knutson.com/

Don't you think it's funny that neither party or the mass media
mention that in the US, unfunded liabilities are growing between
1-1.5 Trillion per year, depending on definition?

The GAO's estimates are popycock. They're just politico
beaurucrats working for politicians. 

And, there's Japan (second largest economy in the world) still 
pushing on a string (after 11 years of recession) with yesterday's 
lowered overnight rate of 0.15%. At one point they had negative
rates (probably to be seen again).

This pay down the debt thing doesn't amount to a hill of beans
in the whole scheme of things.

The USD's purchasing power record:


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