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...steady stream of gases, mostly hydrogen and helium, from its larger companion. As the gases spiral toward the neutron star, they heat up, reaching such high temperatures (up to 10 million°C) and densities that the atoms of hydrogen smash into each other and fuse. This causes a runaway thermonuclear explosion that spews a torrent of X rays. During the period of calm after the explosion, ranging from a few hours to a few days, enough fresh material piles up on the surface of the neutron star to fuel another giant blast...

Author: /time Magazine | Title: Science: Nature's Own H-Bombs | 8/15/1983 | See Source »

...That runaway expansion is forcing the Fed to make delicate decisions. Volcker could push interest rates up sharply to slow money growth, but that would risk aborting the seven-month-old recovery. A big jump in credit costs could also cripple the ability of such borrowers as Brazil and Mexico to repay their U.S. bank loans. "We're going through the moment of truth," says Republican Congressman Jack Kemp of New York, a leading critic of tight-money policies. "What the Fed does now will determine the fate of the economy for the rest of the year, perhaps longer...

Author: /time Magazine | Title: Paul Volcker Superstar | 7/25/1983 | See Source »

...economy gradually got out of control. Government spending became too lavish. Subway systems under construction in Rio de Janeiro and São Paulo, which have absorbed $2.1 billion so far, are the most expensive per mile in the world. Runaway deficits led to more and more foreign borrowing and fueled relentless inflation, which already averaged 20% a year in the early 1970s. When the global energy crisis hit in 1973, Brazil was overextended and vulnerable. Over the next six years, the country had to pay $35 billion, all of it borrowed, for oil imports...

Author: /time Magazine | Title: Rainy Days in Brazil | 7/25/1983 | See Source »

...another five-party center-left coalition that may turn out to be as fragile as its predecessors and lack the cohesion to impose the economic rigor the country needs. Inflation is at 16% while unemployment, at 10%, continues an upward march. More urgent is the necessity to slash runaway public spending to reduce a threatening $60 billion 1983 budget deficit. The prospect of a series of weak coalition governments is already stirring speculation about the need for new elections in a year or two, when the Communists might do even better. Said a Western diplomat: "Once again the Italians...

Author: /time Magazine | Title: Italy: Once Again at the Brink | 7/11/1983 | See Source »

Ultimately, the TIME economists agreed, the runaway U.S. budget deficit will have to be restrained before a full recovery can proceed. As long as annual deficits remain at the $200 billion level, the threat of renewed outbreaks of high interest rates will hang over the economy. On the other hand, if the deficit can be reduced, TIME'S economists foresee the U.S. and other Western economies setting off on the road to a strong, low-inflation recovery...

Author: /time Magazine | Title: Beginning to Build Up Steam | 6/6/1983 | See Source »

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