Volume 7, Number 49, December 16, 1980




Congress must control the Fed.

Middle East Report

by Robert Dreyfuss

Why Begin stays in power.

Dateline Mexico

by Josefina Menendez

Is Hank the most popular candidate?

Energy Insider

by William Engdahl

The Halbouty report on energy: recommending a growth perspective.

Science & Technology

by Vin Berg

CT scanner cuts total medical costs.


Thrift Institutions Fight for Their Lives

by Kathy Burdman

A report on the annual convention of the U.S. Savings League.

Documentation: Three interviews with League officials.

International Credit

by Renée Sigerson

IMF sidesteps U.S. Congress.

Domestic Credit

by Richard Freeman

Volcker goes for broke.


by Alice Roth

Reagan’s choice: Friedman or Rueff.


by Susan B. Cohen

Pension funds making a land grab?

World Trade

by Mark Sonnenblick

The Northeast Drought Hoax

by Leif Johnson

While the New York Times twists the rainfall figures, the crisis managers are standing by.

Business Briefs

Special Report

Selling America’s Cities on the Black Market

by David Goldman

An introduction on free banking zones by David Goldman.

Laundering Offshore Funds Onshore

by Kathy Burdman

How hot, and dirty, money would flow through the zones.

What Are International Banking Facilities?

The Economic Future under Free-Zone Banking

Real Estate: Buying Cities Cheap ... with Drug Revenues

by Lydia Schulman and David Goldman

An extract from an extraordinary January 1981 War on Drugs exposé of the biggest real-estate speculators.

‘Hong Kong’ Model for Housing and Jobs

by L. Wolfe

How Heritage Sells the Enterprise Zone Plan

Columbia’s Savas on ‘The Free Market’

Indexing Mortgages To End Rent Control?

New York State Ends Usury Ceilings

The New Battle Over Rent-Control Policy


Soviet Moves in Poland Hinge on Economic Policy

by Vivian Zoakos

The Arab League Summit

Economic and diplomatic results.

Documentation: Excerpts from the final communiqué.

Syria’s Assad Backs Himself into a Corner

by Robert Dreyfuss

Oil Crisis Neutralized?

by Judith Wyer

Italy: Socialist Leader Craxi Attempts To Exploit the Earthquake Crisis

by Mary Sonnenblick

Dortmund Fights Deindustrialization

by Luba George

A report on West Germany’s Ruhr.

Right-left Setup for Reagan on Mexico’s Southern Border

by Dennis Small

A report on El Salvador.

Documentation: Excerpts from a Carter Administration advisory document.

International Intelligence


House Majority Leader: Volcker Bankrupting U.S.

by Barbara Dreyfuss

Democrats Jim Wright, Bill Alexander, and others have issued unprecedented blasts at the Federal Reserve and its policy.

Documentation: Excerpts from statements on the floor of the House of Representatives Dec. 13, and policy attacks from other leading Democrats.

Profiles: Caspar Weinberger and Alexander Haig

by Kathleen Murphy

Kathleen Murphy describes how these two aspiring cabinet members earned respective monickers, “The Knife” and “The Paperclip.”

National News