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according to THE resource on the 1979 incident:
ronpaul 2012Zivney is the authority on the ?79 case and has written extensively on it. The lapse was blamed in part on problems with word processors.
This time, Zivney says: "I think it's a real shame because we're saying because we disagree on what we're doing going forward, we're going to put the debt we agreed to on hold. I blame the president here because leadership is lacking in terms of setting priorities."Comment
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this is another thing i hate about politics.. this whole flip flop shit..
people arent entitled to change their minds?
now, there is a difference between changing ones mind and just lying to satisfy the moment, but i think people get too hung up on this term and of course the media and the politicians love to rub each others nose in it...
just another broken cog in the wheel...
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ron paul flip flops because doing so keeps him in office, not because he learns more/becomes more enlightened about the topic and reverses his stance.this is another thing i hate about politics.. this whole flip flop shit..
people arent entitled to change their minds?
now, there is a difference between changing ones mind and just lying to satisfy the moment, but i think people get too hung up on this term and of course the media and the politicians love to rub each others nose in it...
just another broken cog in the wheel...
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takes a lot of shenanigans to stay in office for 35+ years all while being an obstructionist who points his finger at the very establishment he work within.
more from zivney on the 1979 incident
good idea ron! let's add more to the debt via a voluntary default.The U.S. did default, in 1979, he says. There was a brief lapse in 1979 on $122 million dollars. We paid a .6 of a percentage point penalty, and that little lapse cost the U.S. billions of dollars in the first year alone.Comment
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abstract on the 1979 incident:
Because of severe technical difficulties, the U.S. government was unable to repay investors in Treasury bills (T-bills) in late April through early May, 1979. This incident led to a 60 basis point increase in T-bill rates at the initial occurrence of the default. Unlike other information effects of that era, such as Henry Kaufman's predictions or Paul Volcker's ?Saturday night special,? this increase in rates was not offset by a subsequent decrease in rates after the Treasury cured the default. The default apparently warned investors that Treasury issues were not completely riskless, which translates into a $12 billion annual increase in federal interest payments as a result of the 60 basis point permanent increase in interest rates.
so based on this, ron paul concludes a voluntary default is a good thing.
i see.Comment
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Lets take a quick look at what happened in this 1979 instance.
The government ?forgot? to pay small bonds holders (individuals as opposed to nations etc) a total of about 120 million dollars ? by accident. This by no means represented a significant portion of the Treasury?s total debt (which was close to 1 trillion dollars at the time). It did however raise interests rates ? but only by 6 tents of a percent.
Not bad shall we say? Not so fast.
In fact, according to Prof. Zivney, this 120 million dollar mistake cost the U.S. about 6 billion dollars in interest. The new, raised interest rates applied to the entire debt that the U. S. owed at the time. In addition, the rates showed no sign of going back down by the end of Prof. Zivney and Marcus?s study.
So, by not raising the debt ceiling and allowing our nation to default, we would be in effect piling our children with exponentially more debt then if we handled this ?in house? (and raised the debt ceiling) in addition to a bad reputation in the international financial community (loss of confidence in U.S. bonds, etc).Last edited by dyna mo; 07-29-2011, 06:54 AM.Comment
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yup.
and they continued going up to 20%, doubling in ~1 year.
June 19, 1979 11.50
July 27, 1979 11.75
August 16, 1979 12.00
August 28, 1979 12.25
September 14, 1979 13.00
September 21, 1979 13.25
September 28, 1979 13.50
October 9, 1979 14.50
October 23, 1979 15.00
November 1, 1979 15.25
November 9, 1979 15.50
November 16, 1979 15.75
November 30, 1979 15.50
December 7, 1979 15.25
February 19, 1980 15.75
February 22, 1980 16.38
February 29, 1980 16.75
March 4, 1980 17.25
March 7, 1980 17.75
March 14, 1980 18.50
March 19, 1980 19.00
April 2, 1980 20.00Comment
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The Mortgage rate run up was in 1982, Ronald Reagan was president ...
http://www.freddiemac.com/pmms/pmms30.htm
these are the Freddiemac rates Conventional loans were more
** 18.45% 2.3pts 10/81 was the peak *correctionLast edited by Barry-xlovecam; 07-29-2011, 07:19 AM.Comment
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The Dow Jones Index may drop below 12,000
http://quotes.ino.com/chart/index.ht...&t=&a=&w=&v=d3
Monday is Aug 1 ...
So, let's let the shit hit the fans ...
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dyna mo:
http://www.anorexiahelp.net/
get some help man. we want to see you well. im here for you brother.
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