News Scrapbook 1985

San Diego, CA (San Diego Co.) Evening Tribune (Cir. D. 127,454)

San Diego, CA (San Diego Co.) Evening Tribune (Cir. D. 127,454)

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vN ation's use of foreign borrowing keeps U.S. economy running strong ByJa?ei'1rwf bl 11" Mih IB d "h. . a pro em at a , says c ae

stable government in the world "We're cranking out high volume deficits and most people around the world are cooperating by underwrit- ing the deficit," he said. But, he added, this leads to a crowding out of business and individual borrowing by government borrowing, since the government can pay higher rates and offer greater security. It is the way federal borrowmg eats up all the money available for borrowing that concerns O'Neil. "Forty years ago government con sumed about 20 percent of net sa\ ings to cover the national debt, O'Neil said. "Now as much as 12 percent of net savings goes to funo ing the national debt." "'It's usually our point of view tha the increase in private debt is a big, ger problem than government debt, Bazdarich said. "It is a greater bur- den on the country's economy - whereas the government just prints money, 1f worse comes to worse. It is also greater problem to cut back pri- vate debt fast It's a greater shock to economy." Busines and personal debt each cu ently stand at $2.l tril~

These figures only measure this year's shortfall, however. The nation- al debt which measures the cumu- lative amount the government owes - now stands at $1.66 trillion, ac- cording to the Federal Reserve Bank. Despite capital inflows from abroad, the percentage of the U.S. debt held by foreigners has fallen steadily ID past four years, Bazdarich pointed out. This is happening because the total amount of the debt is skyrocketing. In 1980, the foreign-held portion of the debt was $129.7 b1lhon, represent- Ing 14 percent of the debt. By 1984 ownership had grown to $175.5 bil- lion, but that fell to 11 percent of the total 'The real issue is are these in- flow (whether they be from foreign or dom tic sources) being used pro- ductively," Bazdarich said. If they are being used invested wisely to create production, then the govern- ment 1s creating the means with which to pay back the debt. "I think one of the old shrewd tatements I recall discovering in econometrics is that everything is connected, " O'Neil explained. ''The trength of the dollar reflects the fact that we've had the highest yiel m history. This 1s mflation-free · er- t, and on top of that we're the most

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I n run 1mphcations are a ht her productivity and a lower of living,' Bazdar h said, part of the product1v1ty will be gomg to pay off the debt we ow to th rest of the world A m J0r cut ID the deficit would take wmd out of gross national prod- uct m a quarter or two, Bazdartch said. "My own view is that it doe n't m an we 11 be controlled by foreign nation ,' Id Robert O'Neil profes- or of economics at the lloivecsity of Sa'.!,U,w.e,"--'1 don't thmk that gomg o happen The Bank of To yo wants bankmg f 1hties in the US so the buy C hform First Banlc, but I don t thmk they are gomg dictate ban mg pollcy o t people who hold debt o~erse couldn't u 1t a a wedge to dictate pohcy. If t cam to that, we could r pud1ate the debt " But I'm certainly concerned about the magmtude of the debt' O' eil said. ''We u ed to ay casually w owe It to ourselves, its not a se- nous pr blem. But that's no longer true" Il IS xpected that the federal bud t def1C1t will total $220 billion tht year, up from $184 b1lhon last year If not curbed, the deficit could xce d 220 billion next year and hit $2.10 billion by 1987. t nd r ' becau

az anc , vice pres1- dent of forecasting at Claremont Economics Institute. "It IS a fortuitous thing, It's true we'll owe money to foreign mterests in future, but it finances current pro- duction. I'd hate to see where we'd be without without the inflow." Impact of the influx of foreign money on U.S. econo- my in the short run means a higher level of economic growth than otherwise would be expected. Because of the new money coming m, interest rates will remain low, the dollar strong and investment here will be high, Bazdarich said. Please see DEBT. A-21

Tribune Financial Editor W HAT'S AL!\'IOST more American than base- ball and apple pie? The national debt. While the majority of the debt is held domestically, money for investment in U.S. government securities is flowing into this country from abroad. Should Americans be alarmed by the rising level of government debt owned by foreign interests? Are we selling our nation's future to a foreign owned "company store" which could take advantage of our indebtedness sometime in the future? Not in the short run, say economists, though eventual- ly the standard of living here co d uced by a high level of borrowing from abroad. Of the $1.66 trillion national debt, $193 billion is held by foreign and international organizations, according to figures supplied by the Federal Reserve Bank in San Francisco. The largest portion of the debt, $290 billion is held by federal government agencies. These include Social Se- curity and the Federal Reserve Banks. Of the rest, $186 billion is held by commercial banks; $146 billion by private individuals; $74 billion by insur- ance co~panies; $26 billion by money market funds; $185 b111ic,n by state and local government and pension funds; $50 billion by non-financial corporations and $355 billion by others, which mainly are savings and loans credit unions, mutual savings banks and other non-bank inancial institutions. The remaining amount represents unds in transit, for which the ownership is not yet known. "I don't see foreign ownership of the national debt as

San Diego, CA (San Diego Co.) San Diego Bu lness News (Cir. 2xM. 3,500) AY • ll.llM '• p C B I '

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San Diego, CA (San Diego Co.) Daily Transcript (Cir. D. 7,000)

San Diego, CA (San Diego Co.) Evening Tribune (Cir. D. 127,454)

by Courtney Davis Ilana (. Cha ~Jr.Jo111cJ JR\\ 151 ProJuct Div1 1011 a director of wafer fabncal on ark 1. Hennen ha been named a prmc'pal of 1 mil, '>chult, & Wold . pcciali 15 in labor relation law for construction industry employer, ~h,·ldon Krant;, Dean of USU\J,chool of law, ha been given a Sarf"D1ego Count> Bar ocrallon a ard for "out landing senice 10 legal education " Oid, endenh,ill, the cngm r for hr t Inter- late l'la,11, rL-cei>ed rccogmlion for out tand- tng p rformance in the Advanced O"ners Program traming course on the Honeywell DI l I 1000 omputer ystcm ( 11llu tu~ ulisio joined Pyropower Corp. as technical ad\l er for the ,timp.iny's utility group Pat Perin ha been namcd the nc" bminess m nager ofG orgia's, lnL ., a tcmporar help and p rrnanent placement personnel sen1cc r r c ounung and book keeping personnd faria aui as ck ted a counl manager lor dia !'er onnel erH.:e . Mark H. 'iilke amJ t.l a P, llt han,najoincd ar h11 ,l Dornm}/I arson ( rpenter as pr ,,I m,magcr Ru rll II. homa, ha been appomted pro- gr rn d1rcclor Titan Centaur at the General Dv•1am1cs Space S} tern D1\ 1s1on. George ,Jillkh joined i... , Construction ( omp 1ny a supcrintendenl for the Steven's ,en olfice buildmg for I omas Santa Fe. ris till r Joined Fou d rs Title Co. as 1110 a c-:i nl manager for the Ii sion V liey arc . D.. nna Jo \ oder has been promoted to ac-

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!..E,l;i ~lliamson, head of t~#,"u&ation Studies Depart- ment at the Uni'ie~iego in Linda Vista, has been voted 1985 Teacher of the Year by the Student Alumni Association and the class

-~_oo_u'lt e~ecut1ve at Bet kman & Damels

San Diego, CA (San Diego Co.) Evening Tribune (Cir. D. 127,454)

MAY 2O1985

AY 2 2 1985

.JI.Um'• Pc. e 1,, 1sR~ ~TJislf.GSe,,.whitcomb of ,Mission ii~ ~sl:J art professor and also director .~rsity design and cu- rator of its 1.500-piece art collection has been selected as the 1985 recipi'. ent of t Lowell Davies Award for Faculty Achievement. Whitcomb was chosen by a Deans' Council com- miltee made up of her peers.

Est. 1888 ~\~~Jght loss program begins <' S01..ANA BEACH - Katy James, MSN, RN, health analysis and discussions

on planning for special occasions, managing thinking, and the use of tactics to change nabits to im- prove healthstyle. The group will be limited to 10 participants and will meet week- ly at 7p.m. in the Lomas Satna Fe Medical Center, in Solana Beach. For reservations and informa- tion, please call the office of Pro- fessional Weight Management at 481-2750. Kathy James is a family health nurse with a Masters degree in Nursing from the University of San Diego who is currently working with adolescents in the SHAPEDOWN program.~--

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educator and director of Profes- sional Weight Management will offer an eight week weight management program beginning Wednesday, May 22. The pro- gram is designed for adults who want to lose weight or control their eating and for those who are interested in prevention of weight problems . Group participants will learn self-management skills for pro- blem solving and weight loss. The sessions will include a com- puterized nutrition analysis of current eating habits, a person- alized dietary plan, body fat

rkers told to help motorists l 'f1-. trandcd moton ts mg out of ga olme on a San Die o street m the early morning hours g The other ca e involved a wo~an County cmplu; ec dnving the fleet who was allegedly raped by a man of 1,3 0 rad1orqmpp d vehicle, are ofkring help. m tructed to contact police or . In additon to county sheriff's depu- h1ghway patrol to report stranded Iles. affected county departments dn~er \\ho appear to need would IDClude the departments of a I tanc ammal control, the mar hal's office Two tranded women motori t and park and recreation. have been \ 1cttmtze--.:....:=e.!~~~~..!!!!!l'~~~ b~eL,rr;QCQUtred during the busiest hours, ;;;~:;~ 0 ~: t~i I tance u~ler a pol upcrvl ors mornmg Y county

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