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Originally posted by raghar
Are you guys talking about that 150 km ranged missiles, that are rumored to be able to go 180 km - without guidance system?
I forget. Are we believing Iraq or the UN when it comes to arms declarations, especially with Blix saying that Iraq lacks credibility?
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Below is a link to a 1997 article on the Fed's Open Market operations where the author ends up, see the paragraph on page 16 just above the summary, recommeding paying interest on required deposits to offset the continuing effective decline in reserves due to an increasing use of "sweep" programs.
The author also notes that the failure to pay interest on deposits is an implicit tax on deposits incenting the trend.
So actually, Duncan and Frogger may be right. Paying interest may have the effect of increasing reserves.
Ned : you still want to go to war with France, Germany and Belgium because these countries are a "much bigger menace" than Iraq ?
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Originally posted by Spiffor
Ned : you still want to go to war with France, Germany and Belgium because these countries are a "much bigger menace" than Iraq ?
Spiffor, No and Yes. It is clear we are be jobbed by Chirac and I just don't like it. But I guess the French do not have a reputation for being masters of diplomacy (and deceit) for nothing.
Obviously, we Americans are trying to read between the lines and determine what it is that Chirac is after. He may be after votes in France. But, that is what most say about both Clinton and Bush, don't they. Wag the Dog.
No, I think Chirac has a long term strategy. Certainly his game iin the UN has no made him de-facto leader of the anti-Americanism world. He and France now have a lot of influence. Maybe he planned this outcome.
Maybe we could charge them for keeping their reserves
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Actually, if you take a look at the article, it clearly shows how dramatically the total reserves shrank during the 1992-2000 timeframe as banks switched wholesale to moneymarket sweeps. This reduction in reserves fueled an expansion in the money supply, and undoubtedly lead to the "good times" of the '90s. But, at some point, the party had to end. The point now is how to get the party started again. We can no longer reduce reserves to fuel expansion - and paying interest on reserves may have the effect of increasing them, just as you predicted.
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