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Show Tuesday, October nl nauuiiai 2, 1990 The Daily Herald, Provo, Utah Znrp m.3 xA,. oil barrels almost as scary as loaded Empty - NEW YORK (AP) For global economies, an empty barrel of oil can be as scary as the loaded barrel of a gun. No shots have been exchanged yet in the Persian Gulf, but war jitters have nearly doubled the price of crude oil to almost $40 a barrel since Iraq's Aug. 2 invasion of Kuwait. In New York, the stock market fell 15 percent to its lowest point in 16 months before rebounding somewhat Monday after the federal budget compromise was reached. The Tokyo market is even worse, d ana' plummeting about reaching a level below that of the 1987 crash before regaining part of the loss today. In London, stocks are down about more than 10 percent. So what happens if the real thing breaks out and bullets start flying in the world's richest oilfields? What if Iraqi missiles strike pipelines, pumping stations, oil ports or tankers in Saudi Arabia? What if poison gas or germ warfare scatters oilfield workers? "It is not just thousands of lives that are at stake in a shooting war. one-thir- There is a risk of a real cataclysm for the global economy," said Christopher Flavin, vice president of research at Worldwatch Institute, a policy research organization. WorldWatch's projected casualty list means worldwide gas rationing, the financial collapse of developing countries, outrrht failure of the economic reforms in Eastern Europe and a severe shock to the world banking system. Many experts believe doomsday anxieties are unfounded because Iraq is unlikely to knock out Saudi PTnnrts. The Iraais repeatedly tried but failed to cripple Iran's Kharg Island loading terminal in an eight-yea- r war, and Iran had nothing resembling the U.S.-lehigh-tec- h shield protecting Saudi Arabia. But Iraq has vowed to fight "the mother of all battles." The Strait of Hormuz could become choked with mines, terrorists could unleash hit squads and kamikaze pilots could fly missions against oil terminals or tankers. And even though Iran fought a bloody war with Iraq, Iranians are again shouting "Death to America," so who knows what they might do? Grab the financial flak jackets. The World Bank estimates a shooting war would boost oil prices to $65 a barrel. Worldwatch said war could bring $80 prices, and the former Saudi oil minister among others said it might even hit $100. d, Superexpensive oil would trigger a financial chain reaction. The immediate spike could mean gas pump prices of $2.50 a gallon or higher, soaring electric bills and higher airline fares. Prices would climb on products such as plastics, pharmaceuticals, synthetic clothing and asphalt. There would also be the likely double whammy of recession. The United States, "the world's biggest oil user, has 6 percent of the world's population and 3 percent of its oil reserves but consumes 26 percent of its oil. In a pinch, people are less likely to make major purchases such as cars, houses, major appliances and discretionary clothing. ' 1 Regan says deregulatory S&L policies not to blame - Briefs House resolution backs Bush policies - The WASHINGTON (AP) House has voted to support President Bush's moves in the Persian Gulf crisis, but in a carefully worded resolution that emphasizes the need for diplomacy to resolve the standoff. The resolution, adopted Monday on a 380-2- 9 vote, avoids any mention of future steps in the crisis. "This resolution most assuredly does not represent a blank check," said Rep. Lee Hamilton, chairman of the Foreign Affairs Middle East subcommittee. "It does not support future actions except those actions that continue present policy." Hamilton and committee chair- man Dante Fascell, said it is the responsibility of lawmakers to demonstrate furmaiiy how they feel about Bush's policies in the Middle East. "This is the most significant decision of the Bush administration with regard to foreign policy, and Congress ought to speak its mind on it," Hamilton said. Opponents said the resolution ab- dicates Congress' responsibility and gives Eush to many loopholes to wage a war. aircraft being seen in West Odd-shape- d WASHINGTON - Several (AP) d quiet, triangular aircraft of unknown origin have been spotted in the air near large, wing-shape- Air Force bases in California and elsewhere in the West, reports Aviation Week and Space Technolog- week's edition that became available Monday, says the triangular aircraft are possibly prototypes of the Air Force B-- 2 or Navy 2 A-1- aircraft. different aircraft whose engines produce a loud roar that The 2 is a new fighter under development, which has not been displayed. The B-- 2 is the "stealth" bomber, which has been displayed, and its shape is also has been spotted, the magazine said. The Air Force declined to confirm or deny that the sightings were of new warplanes. The publication, the current Aviation Week published what appeared to be pictures of the 2 without explaining whether they were actual aircraft in flight, artists' conceptions, models or something else. A-1- y- A well-know- n. resembles heavy rocket engines WASHINGTON (AP) The deregulatory policies of the Reagan administration helped contain the savings and loan crisis, former Treasury Secretary Donald T. Regan is telling skeptical congressional Democrats. "I think the thrift industry would have gone into the tank sooner and may have never emerged," Regan told the House Banking Committee at the first in a series of hearings on the causes of the S&L mess. Regan, who was Treasury secretary from 1981 to 1985, said that after interest rates soared in the early 1980s it became clear that a financial business confined to taking deposits from savers and lending the money to home buyers could not survive. He said he had favored giving thrifts the same investment powers as commercial banks, but had opposed the broader deregulation in some states that had given thrifts k powers. non-ban- The committee also heard on Monday from Richard T. Pratt, who served as the nation's top thrift regulator from 1981 to 1982. Pratt defended his decision to allow S&Ls to hide their losses with accounting techniques. Pratt said when he took office, neaily every S&L in the country The amount is based on a comwas technically insolvent because plex formula that considers the soaring interest rates had drastifund's earnings over the previous cut the value of their five years. The recent doubling of cally fixed-rat- e mortgages. oil pFiCcsbeCSUsc ufuifr PeFSr&n- sT strategy was W close Regulator Gulf crisis did not affect this year's the worst institutions and to buy dividend. time for the others until interest rates fell, as they did, he said. Announcement of the dividend Panel members pressed Regan, amount is widely anticipated in who was chairman of Merrill Alaska, where merchants hold Lynch before becoming treasury "dividend sales" and car dealers secretary, on his involvement with accept the checks as down paybrothe development of ments. In the state's poor, rural kered deposits. areas the dividend is a major st Such deposits, source of personal income. placed by Wall Street brokerage houses, usually in amounts just under the $100,000 deposit insurance limit, are blamed for fueling the explosive growth in risky inPhysicians. vestments at many S&Ls. "Basically the American Medical Regan, however, said he had Association and the American himself from any polidisqualified of are Family Physicians Academy cy matters affecting brokered deassociating with people who murder 400,000 Americans a year, in posits because of his connection to order to save a possible 35,000 or Merrill Lynch. He said the firm did not deal in them extensively until 40,000 because of lowering choleshe left. after of Blue Brent Dr. said terol," "I want a blood test as far as Jackson, Wyo., a member of the being the father of brokered deposfamily physicians' academy. in no way, shape or its. I am not The doctors' organizations have fashion," he said. allowed their names and symbols Rep. Joseph Kennedy, to appear in newspaper and magazine supplements supported by countered that Regan allowed his subordinate, Deputy Treasury SecFleischmann's, a maker of marcholesterol-fre- e and a egg retary R.T. McNamar, to forcefully garine advocate their use. substitute. A-1- Alaska will pay every resident $952 - AlasJUNEAU, Alaska (AP) kans will get more than $950 each from the state this year as their annual share of earnings from the h h2bnnuir-uii-"weaitsavings account. The $952.63 dividend announced since Monday is the second-largethe state began the Alaska Permanent Fund in 1982. It is $79 more than the 1989 dividend. For a family of four, this year's dividends will total about $3,810. They are paid to virtually every man. woman and child residing in Alaska, regardless of income. st - lower Americans' cholesterol and reduce their risk of heart attack. "It's a pathetic use of a medical organization for the commercial ends of a tobacco and food conglomerate," said Dr. Alan Blum, a family physician and chairman and founder of the group DOC, or Doctors Ought to Care. Blum is a member of the two doctors' organizations, the American Medical Association and the anti-smoki- American Academy of Family $1,918 80386SX Processor 16 MHz 40 EPSON . Monochrome Monitor Epson's one year limited warranty MCni''L':Q ...TTTt EQUITY"0 MB Hard Drive 386SX Epson is a V I v 4 --- - 45 1 a i i m k w i , m w s i ;. s aw mm x e m. 300 X Free 65-in-O- 300 - The sources, who spoke on condition of anonymity, said Bennett's report establishes crucial links between the timing of contributions by Keating to Cranston, Riegle and DeConcini and actions they took on Keating's behalf. WASHINGTON (AP) The Senate Ethics Committee is summoning five senators to explain their assistance for Charles H. Keating Jr. at a time his Lincoln Savings and Loan was plummeting toward a massive collapse. The senators will appear over the next two weeks, the committee announced Monday, after which the panel will act on recommendations from its special counsel. Congressional sources said counsel Robert S. Bennett has recommended that the investigation go forward for Democratic Sens. Alan Cranston of California, Donald W. Riegle Jr. of Michigan and Dennis DeConcini of Arizona. Bennett, also recommended that the investigations of Sens. John and John Glenn, McCain, be dismissed, the sources said. Continuation of any of the cases could mean trial-lik- e hearings would Lc scheduled probably next year." as "The conclusion was there no connection between the contributions and actions" of Glenn and McCain, one source said. The links were instrumental in Bennett's recommendations, said another source, who added Bennett's conclusions are not based on a single factor but on a pattern and practice of behavior by each senator. ne "Under our existing practices, the committee must give each sen-atunder investigation the oppor . SPECIALS S X n . Kinsmen. MEXICAN RIVIERA From $rQr DTD SOUTHERN CARRIBEAN From $AQr OVO (cruise only) Nathan Brown rM, k :V flfZ. V ln y' Pam TAKE ADVANTAGE OF OUR PRICE THRU OCT. 30 Eichelberger And R Rusty Chambers, Owners FOR CLEANER, SAFER, MORE EFFICIENT WOOD BURNING HURRY! 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The five senators received a total of $1.3 million from Keating and his associates for their campaigns and causes, and intervened with U.S. banking regulators on behalf of the former head of Lincoln Savings and Loan of Irvine, Calif. The federal government seized Keating's thrift in April 1989. It could cost taxpayers more than $2 billion to cover the losses from the collapse Glenn and McCain are scheduled before the ethics panel this week, sources sa.i. It was not known when the other senators will testify. to appear Shopsmith's Bandsaw, DPI v Ethics pane! to quiz 5 senators Jointer. Belt Sander, Scroll Saw (MARK V mounted). Strip Sander, or the Lathe Duplicator as your FREE ACCESSORY! But that's Affordable, Easy to use Laser Printer... fca The Senate Ethics Committee will interview these five senators about links to Charles Keating. 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