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...some program that conflicted with his tenets. His persistence was always one of his virtues, part of his political genius: Americans thought he believed deeply in a few simple principles, including low taxes and high defense budgets, a configuration that helped turn the U.S. into the world's biggest debtor. But now that stubbornness, almost a denial of reality, worked toward his undoing...

Author: /time Magazine | Title: The Crash: Who's in Charge? | 11/9/1987 | See Source »

...speech, Alfonsin skirted many problems. He outlined no fresh measures to reduce government expenditures or privatize any of the state's 520 deficit- ridden companies. Although Argentina has been conciliatory to creditors, foreign bankers have been especially leery of debtor nations ever since February, when Brazil stopped paying interest on a large part of its $110 billion debt. That helped lead several U.S. banks to declare record losses. Since a similar default by Argentina would add to the bankers' mounting woes, they are as eager for Alfonsin's new program to work as the President...

Author: /time Magazine | Title: Familiar Tune | 10/26/1987 | See Source »

...bedeviling relationship of foreign creditors with America the Debtor has shown up strongly in recent weeks. Foreign governments have intervened repeatedly to prevent the U.S. dollar from sinking even faster than it has so far. A weaker dollar would make American exports cheaper and imports more expensive -- and that would make the U.S. better able to repay its debts. But America's major creditors, who are also its major trading partners, are not wild about a further rapid slide in the dollar's value: such a precipitate decline would erode the trade surpluses that made them creditors in the first...

Author: /time Magazine | Title: Learning to Love Stocks and Bonds | 9/14/1987 | See Source »

Such writers are frightened--and rightfully so--by our sluggish economy, our losses in international trade, and our rapid transformation from the world's largest creditor to the world's largest debtor in the space of a few years. They have watched the United States' share of the world economy drop from nearly half to close to a quarter. They observe the growing power of the Japanese and Germans, and they say the decline is unstoppable. They chart the failures of our military power in Vietnam and now the Gulf, and they cry "Uncle...

Author: By John C. Yoo, | Title: America's Decline? | 8/18/1987 | See Source »

...Fund in Washington, an organization to which club members also belong. Then, to convince the club that they are truly unable to pay back outstanding loans, petitioners must do a virtual striptease, disclosing their most sensitive financial data. "One of the unwritten rules is that the confidentiality of a debtor country's economic and financial statistics is sacrosanct," Trichet explains...

Author: /time Magazine | Title: In Debt? Ring Up the Louvre | 7/13/1987 | See Source »

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