As most everyone can recall, President Bush stated his 1990 State of the Union Address that his spending plan "balances the budget by 1993 with no new taxes." There have been new taxes, however, and the federal government will end fiscal 1993 some $330 billion in the red.

As James Grant, editor of Grant's Interest Rate Observer, reported Friday, the monetary base of the United States has grown by 11.2% this year and M1 has leapt by 14.2%. Short-term interest rates are close to their lowest levels in 25 years.

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