A reduction in young stock reduces the roughage requirements but contributes little to the reduction of the nutrient surplus.
Thus, even if a rise in the return on investment reduces the level of domestic savings it will not lead to a reduction in the surplus of such savings over investment.Andrew SmithersSmithers & CoLondonHouston, you have a problemSIR – Enough hype about Houston ("The blob that ate east Texas", June 23rd).
With the two parties having agreed to dedicate to debt reduction the part of the surplus generated by Social Security -- $2.5 trillion over the next 10 years -- it is possible that the money available for debt reduction will exceed the level of redeemable debt starting as early as 2006.
–Erdogan is also interested in encouraging foreign investors to increase their stake in Turkey, particularly to assuage anxieties that the recent reduction of the primary fiscal surplus target and the expiry of the current International Monetary Fund standby accord next year may give way to a premature relaxation of fiscal discipline.
The trade-off between debt reduction and other uses of the surplus "appears no longer an issue," Mr. Greenspan said.
Democrats have instead endorsed small, targeted tax reductions to use some of the surplus for Medicare and Social Security.
Mr. Kasich's goal, Republican aides said, is to make sure as much money as possible is locked away for debt reduction, while still leaving enough of the surplus available next year to enact the $483 billion, five-year tax cut proposed by Gov. George W. Bush of Texas if Mr. Bush should be elected president.
Democrats would like to direct a larger share of the surplus toward debt reduction.
Thus the Republicans' plan only commits $42 billion in new funds -- or about 16percentt -- of the surplus for debt reduction.
And among Democrats, dedicating much of the surplus to debt reduction is popular in part because it leaves that much less money on the table for Republican tax-cutting plans.
The economy's recent strength has been underpinned by big budget surpluses and reduction of the national debt.
