Yesterday, I finally received my notification from the IRS about our $600 soon-to-be-coming check. The letter said the check would be coming the week of Aug. 13th. I thought, "Oh boy, that's this week!"

Since it was time for a cocktail, I didn't look at the rest of the mail (mostly junk, anyway). Later my wife found the check in a separate envelope. I got my notice and the check the same day. Go figure!

 

So how come you're not upset about getting a notice. I am. This notice was a blatant advertisment for George Bush. I calculate that, even at bulk rates, the postage alone cost over ten million dollars. I'll bet thirty million was spent on this.

BTW, the reason for this "tax relief" was to make sure that the Feds need to continue to borrow money so that interest rates will remain higher than they would be if the Feds paid off debt. Oil guys aren't the only ones getting a Bush payoff. Bankers want theirs too.

Enjoy your "relief." It's coming out of your next car loan or mortgage payment. Hmmm. More efficient than it seems, huh?

 

Reason for more celebrating.

 

At the risk of turning this into a huge debate about economics, paying off the national debt is the worst course of action our government could take. Millions of investors (pension funds, 401Ks, and so on) need risk-free debt. Additionally, until our trade deficit is zero, the rest of the world needs a way to return dollars to our economy.

A couple of years ago Newsweek (as I recall) ran an article by Chris Dyalanis from PIMCO on this very subject. This should be required reading for every Senator and Congressman.

 

[QUOTE]Originally posted by magician
[B]

At the risk of turning this into a huge debate about economics, paying off the national debt is the worst course of action our government could take.

 

I wish my government would send me a nice cheque

 

I'm a little ticked about the letter, but that's nothing compared to what the CA DMV does... See, a few years ago we passed a law that reduced ou auto registration fees by about 25% (we still one of the highest cost states in the US for registration). So, do all of the renewal notices go out with the reduced amount? NO! For almost a full year they went out at the old rate. 3-4 weeks after renewing, you'd get a letter explaining the rate cut, and a few weeks after that you'd get a refund check in the mail. I have recieved at least 2 other letters explaining the reduction in VLF as well - it's just advertising!

 

People are never happy. I would hate to be President. You do something no Prez in a long time has done (lower taxes and kick some money back to the people) and you still get crucified for it by half the citizenry. No matter what course of action he takes in any matter, people are always screaming for his head.

I, for one, am happy about my check (cheque for all you Queen's English people out there) and lower tax rates. Car loans and mortgage payments are at the lowest levels they have been in a damn long time, AND I got some ducats back. Working out for me so far. Now if the stock market would get its shit together.

 

Guess you owed me that one.

I don't think small investors profit from the higher interest rates resulting from investment dollars being tied up in government bonds. Seems to me they lose most back in interest payments. Big investors don't spend as high a percentage on asset financing and may not be aware of this.

And saying that bonds don't affect short term rates confounds me. Investment capital is subject to the same supply and demand forces as the rest of our economy isn't it? Perhaps you can explain this in more detail or in terms a dumb liberal might understand.

 

If not president Bush, who should we thank for this little check?