To achieve those returns, the trusts invested as much as 40percentt of their assets in derivatives known as inverse floaters, whose value sank when interest rates jumped in 1993 and 1994.
If China stops buying U.S. bonds, the dollar would sink, but interest rates would soar and the deficit would mushroom.
"The House budget chairman has defined those stakes well as a generational choice about the role of government and whether America will once again become a growth economy or sink into interest-group dominated decline," The Journal wrote.
More than any other politician, the House budget chairman has defined those stakes well as a generational choice about the role of government and whether America will once again become a growth economy or sink into interest-group dominated decline.
"More than any other politician, the House Budget Chairman has defined those stakes well as a generational choice about the role of government and whether America will once again become a growth economy or sink into interest-group dominated decline," the paper wrote this week.
The current recession will (a) see unemployment reach 8percentt by fall and be blamed on Bush-league economics; (b) end by summer as Dow average booms above 12,000; (c) linger mildly through the winter despite ever-rising deficits and ever-sinking interest rates.
2 world — one involving higher interest rates, sinking global confidence and an inability to meet basic obligations — is itself worlds apart from the one described by Mr. Boehner and his Republican caucus in the House.
Powell implemented the use of the state's sinking fund to pay interest on school bonds, a measure which had passed over Governor Helm's veto, but Helm refused to carry out.
But in many ways the high-interest-rate, sinking currency, boom problem is an easier one to manage than the low-interest-rate, persistent slump morass.Would this actually work in practice?
So why borrow money at 15% to invest at 10%? What's more, the value of the taxexempts could sink drastically if interest rates rise.
