Re: IRS may be in deep trouble

Michael Lorrey (
Thu, 18 Sep 1997 21:11:27 -0400

Keith Elis ('Hagbard Celine') wrote:
> Yes, indeed. The IRS is (as the French say) fucked.

I love it. Now to benefit from it. Anyone have a good idea of what will
happen on the financial markets? What will the Feds do? Will they have
to finance the budget completely by bond issues? If so, expect interest
rates to go thru the roof to soak up that much new debt on the market.

So here are some tips:
Get out of any Adjustable Rate Mortgages you are in, and try to
consolidate as much of your debt as you can in gov't backed loans, just
so you can default easily when the banks call in older low interest
debt. Get out of stocks in late 1998 and into cash. Cash in your own
safe, not in a bank, CD, money market, etc. In late July thru Oct. 1999,
as bond prices are dirt cheap and interest rates are sky high, start
buying bonds. Despite the fear mongering, the gov't will not default. It
will however rack up astounding amounts of debt that will trigger a wave
of deflation. Money will become worth something again, however the gov't
will likely react by printing more of it than normally needed, else the
draw on the money markets will cause a depression worldwide. After
everything sorts out several years later, there should be a whole new
generation of Banker Barons who made it on the bond rollercoaster.

			Michael Lorrey
------------------------------------------------------------	Inventor of the Lorrey Drive
MikeySoft: Graphic Design/Animation/Publishing/Engineering
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