Oregon daily emerald., June 04, 1982, Page 3, Image 3

Bob Pack wood
Photo by Erich Bcekelheide
Interest rates could decline
by year’s end, senator says
By William Kogut
Ot th» Emmrmkt
Long-term interest rates could drop drama
tically by the end of the year, but civilization as
we know it may not last long enough to enjoy
the fruits of tumbling rates
That was the theme of Sen Bob Pack
wood's, R-Ore., mid-day speech to 30 Eugene
20/30 Active Club members and their wives at
Bev's Steak House Thursday.
Interest rates will drop if the House enacts a
federal budget already passed by the Senate in
late May, Packwood said
"The Senate budget cuts military spending
more than Pres Reagan might like and raises
taxes more,” Packwood said ‘But the result is
that deficits will decline over the next three
years, whereas under the original Reagan
budget deficits would have increased ”
Smaller deficits would mean less govern
ment borrowing, which would in turn reduce
upward pressure on interest rates, he said
Lower interest rates would revive the housing
market and Oregon's timber-dependent econ
omy, he added
Packwood dismissed the concern of many
economists that the Senate budget, in contrast
to most past presidential budgets, does not
project a balanced budget in the near future.
"Past presidential budget projections may
have shown budgets balancing after three
years, but they were based on unrealistic
expectations of inflation and unemployment,
while the Senate budget is based on realistic
figures," he said
Of course, all bets are off if the world ends.
Packwood said the danger of “civilization as
we know it" ending has increased along with
the chance of an "irrational country” gaining
control of an atomic bomb
"Iraq is a country I would class as not
rational," the senator said. "When the Israelis
bombed the Iraqis' reactor, I asked the CIA
about it They said the reactor was too big for
research but too small for generating elec
tricity. In other words, Iraq was going to build a
bomb."
The Israelis were therefore right in taking out
the reactor because a nuclear-armed Iraq
could have touched off a nuclear holocaust,
Packwood said
"Israel took care of the the problem of
(nuclear proliferation) in the Mideast for the
time being, but in the long run, we can't
depend on them,” Packwood said. “I don't
have a solution, but I’m willing to listen to what
you (the public) have to suggest."
Also, regarding the housing industry, Pack
wood reiterated his support of Sen. Richard
Lugar's, R-Ind., bill subsidizing 12 percent
mortgages for new homes.
“The big question about the bill, now that it
has been passed by both the House and Sen
ate, is whether the president will sign it,"
Packwood said “If he vetoes it, we will have
the votes to override him."
Book Buyback
is Back Again
With the Best Deal
in Town.
June 7—12
When you sell your books back to the University
Bookstore, realize you are getting the best deal in
town Remember our policy:
We buy books that the faculty has ordered for next
term at 50% of our current selling price.
That's the best deal in town.
Other textbooks, not needed on this campus, will be
bought from you at a price determined by used
book wholesalers. Whatever the books are worth
the Bookstore will pay cash for them. Recycle
your books and help keep future book costs as low
as possible. Sell your books back to the University
Bookstore, June 7-12.
The University Bookstore: Believing in
Higher Education not high prices.
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