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In a message dated 2/2/00 4:00:15 AM Eastern Standard Time, JW@xxxxxxxxxxxx
writes:
<< Over 4 yrs ago Martin Armstrong warned that the Clinton Administration was
making a huge mistake in funding the debt mostly on the short-end.
Armstrong warned that doing so would cause the yield curve to invert and
that the end result would be greater volatility in the financial markets and
a huge vulnerability to the next surge in inflation. Guess what?...
Armstrong was right! As we start a new commodity bull market we are about
to learn why most people don't finance their house on a credit card.
Effectively the govt is doing just that. Over 30% of our debt is funded 1
yr or less; and over 60-70% of our debt is funded 5yrs or less. A more
prudent administration would have taken advantage of lower long-term rates to
lock in most of its financing in 10s & 30s. But not Slick Willy! He knows
he won't be President when the proverbial fit hits the shan! So who cares!
If the Clinton Administration have decided to issue fewer bonds and buy back
off-the-run old bonds, they do so for a reason.
>>
Good morning
I completely agree with above statement
bob gross who is the most admired and successful money mgr. in fix income,
does it the way Armstrong recommends!!
he issues for IBM the LONGEST bonds at the LOWEST interest rates
As a former mm for a major insurance company, in connection with
STATE Street trust and mgt. CO we did the same,,
to raise money for example when we opened a property and casualty CO
we issued debt at an opportune time,, i.e. when rates on the 30 were at 4
year low
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