🚀 go-pugleaf

On 23 Aug 2006 21:01:51 -0700, "lein" <boomer_the_cat@my-deja.com>
wrote:

>
>Don Homuth wrote:
>> On 23 Aug 2006 13:37:43 -0700, "lein" <boomer_the_cat@my-deja.com>
>> wrote:
>>
>> >
>> >Paul J. Berg wrote:
>> >> What if Oregon could enjoy the fastest economic growth rate of any state
>> >> over the next five years? What if, over the next two years, Oregon could
>> >> build a rainy day fund in excess of $2 billion to help cushion
>> >> inevitable economic downturns?
>> >
>> >A rainy day fund isn't necessarily a good thing.
>>
>> Depends on what you do with it.
>>
>> >  It would allow a
>> >government that becomes bloated and unresponsive to maintain status quo
>> >and avoid necessarily reorganizations.
>>
>> No reason to assert that would necessarily follow.  A cash pool
>> doesn't require that outcome.
>
>There is no incentive to reform and regain efficiencies.

There are insufficient incentives, I'll grant you, but hardly the case
there are None.  Bonuses and Promotions oftimes follow suggestions for
efficiencies, but by and large they are difficult to provide because
there are some folks who believe they are undeserved with public
employees.

>> >Also, a pot of $2 billion just sitting there will soon become a pot of
>> >$2billion worth of IOUs.
>>
>> First off, it won't just sit there.  That would be a Really Stupid Way
>> to manage any large cash pool.  It will be held in banks as a part of
>> their reserve, and from which they will loan money, but they will be
>> required to redeem the loan from the State on demand.
>>
>> Modern cash pool management techniques are probably unknown to you,
>> but they do exist, to the general benefit of taxpayers.
>
>Actually I'm quite aware of large cash pool management techniques and
>politicians.  The Feds call it social security.   It's AlGores lock box
>that holds billions in IOUs.

No -- that is not the case.  And you're the greater fool for saying
so.

Oregon, for example, does a rather sophisticated form of Cash Pool
Management that regularly results in a net return of >$60M/annum back
into the general fund, from the interest that the cash pool draws.

The reason the cash pool exists at all is because expenses are
"smooth" and revenues are "lumpy" in gubmint finance.

But since you clearly know from Nothing about what a real Cash Pool
is, trying to explain it to you is pearls before swine.