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...dark side. But last week the Administration showed the first signs of concern about the disruption of domestic oil production. Speaking to reporters on Monday, Energy Secretary John Herrington laid down a warning to Saudi Arabia, the country that helped start the current price war by drastically boosting its output. The kingdom's strategy has "created severe problems for the American petroleum industry," Herrington said, and could have "political implications" for the Saudis if they continue...

Author: /time Magazine | Title: Cheap Oil! | 4/14/1986 | See Source »

...prices whipsawed upward later the same day when Vice President George Bush, a former Texas oilman, seemed to imply that he would try to persuade the Saudis to throttle back their output. At a press conference Bush gave as he prepared to leave on a trip to the Middle East, the Vice President said, "My plea will be for stability of the marketplace." But a senior White House aide quickly denied that the Administration would depart from its free-market philosophy, "even if it means the oil price drops to $1." The seemingly conflicting comments generated jitters...

Author: /time Magazine | Title: Cheap Oil! | 4/14/1986 | See Source »

...third of the South American cocaine entering the U.S. Mexico is also grabbing larger shares of the U.S. markets for heroin and marijuana. Partly because of Mexico's economic woes, struggling farmers have boosted their crops of opium poppies and marijuana plants. U.S. consumer demand for their output has increased as well. Mexico's illicit heroin- refining labs have upgraded their equipment so that their product, previously a crude substance dubbed "Mexican brown," now competes with purer varieties from Southeast Asia. At the same time, Mexico's marijuana has made a comeback with bargain-minded smokers; it costs only...

Author: /time Magazine | Title: Buried By a Tropical Snowstorm | 3/17/1986 | See Source »

...promises. At a 1961 party congress, Nikita Khrushchev unveiled a program predicting that Soviet citizens by 1980 would enjoy free transport and housing, the end of manual labor and living standards that exceeded those of any capitalist country. Instead of placebos, Gorbachev's 15-year plan sets targets: industrial output and national income will double by the end of the century, and labor productivity must grow by 130%. To meet those goals, the economy is supposed to expand at a 4.7% annual rate, about twice the pace of the past decade...

Author: /time Magazine | Title: Soviet Union the Reformers Lead the Way | 3/3/1986 | See Source »

...Soviet Union's disastrous agricultural program, which Gorbachev headed during part of Brezhnev's years, is now being scrutinized and reorganized. Another serious problem facing the country is oil. Petroleum output, which provides more than two-thirds of foreign currency earnings, had begun to decline even before the petroleum glut, and lower market prices will further diminish income. Said Jan Vanous, a Washington-based analyst of the Soviet economy: "The decline in oil prices represents the most serious external challenge to the Soviet Union since World...

Author: /time Magazine | Title: Soviet Union the Reformers Lead the Way | 3/3/1986 | See Source »

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