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...ranks. That will not be easy. Even Baker was leery. "Every fiber in my political body resonates against a $90 billion deficit," he said. He went so far as to mention the unspeakable, for a Republican leader: "The ultimate tragedy would be if this country, teetering now on the brink of national bankruptcy, slipped over the edge." Declared Republican Senator William Armstrong, a key member of the Senate Budget Committee: "There is close to no chance that Reagan's budget will pass. Very few Republicans would vote for it. I know of no one." Fretted Michel: "The overriding consideration...

Author: /time Magazine | Title: Reagan's Deficit: A Line Drawn in the Dirt | 2/22/1982 | See Source »

...policy fail, the Administration will face some excruciatingly difficult choices. If Duarte should lose out to one of his rightist rivals, does the U.S. withdraw its support and leave the repressive new regime to its own brutal but dwindling devices? More difficult still, if the guerrillas seem on the brink of military victory, does the U.S. send in combat troops? Friendly countries in the region and American allies around the world would almost unanimously oppose deeper, more direct American involvement; the Administration would also have to contend with massive political and popular resistance in this country, based as much...

Author: /time Magazine | Title: Essay: El Salvador: It Is Not Viet Nam | 2/22/1982 | See Source »

...first order of business was to save the nation's banks. The largely unregulated banking system, which Democratic Senator William Gibbs McAdoo of California said "does credit to a collection of imbeciles," was on the brink of total extinction. During the last week of the Hoover regime, $250 million in gold had been withdrawn by frightened depositors. Overall bank reserves now stood at a mere $6 billion against liabilities of $41 billion. Roosevelt decided that he had no choice but to proclaim a nationwide "bank holiday" to last until he could push a recovery bill through Congress...

Author: /time Magazine | Title: F.D.R.'s Disputed Legacy | 2/1/1982 | See Source »

Vinogradov argued that the growing discontent of fundamentalist, right-wing clergymen with Khomeini's policies, together with what he called the "CIA-backed leftists" of the Mujahedin-e-Khalq (People's Crusaders), had brought Iran to the brink of a civil war. Vinogradov told Mousavi that Iran would be ripe for a U.S.-backed counterrevolution. His deal: increased Soviet protection, presumably in the form of arms and technical advisers, in exchange for a formal five-to ten-year "friendship and mutual assistance treaty" between the U.S.S.R. and Iran. The Kremlin would stand ready to defend Iran against "foreign...

Author: /time Magazine | Title: Iran: Moscow Mission | 1/18/1982 | See Source »

...sector of the Russian economy that works well. Should the West boycott trade with the U.S.S.R. and its satellites altogether, a policy favored by some members of Congress, not only would Western Europe suffer if indeed it went along, but the West might push the Soviets to the economic brink. When people have empty stomachs, they are not rational. In these circumstances, thanks to the U.S.S.R.'s well-oiled propaganda machine, the real enemy--the system--is easily camouflaged by a more handy one, the West. Just as the Germans clamored for "living space" during the 1930s, the Russians could...

Author: By Antony J. Blinken, | Title: Mending the Alliance | 1/7/1982 | See Source »

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