European Stars and Stripes (Newspaper) - November 11, 1991, Darmstadt, Hesse Monday november 11, 1991 the stars and stripes b Page 17 Money matters today s tip trans world airlines said its third Quarter losses More than tripled a result of the recession and persian Gulf War aftermath. Twa said it lost $51.3 million on revenues of $1.01 billion compared with a loss of $14.7 million on revenues of $1.34 billion for the same period in 1990. For the first nine months of the year Twa reported a gain of $197.5 million mostly because it sold $676.6 million in assets including Choice routes into London a Heathrow Airport that went to american airlines. Twa also was Able to write off some of its debt and make accounting changes that contributed to the gain. Twa showed an operating loss of $257.7 million for the nine month period on revenues of $2.75 billion. For the first nine months of 1990, Twa had lost $54.3 million on revenues of $3.59 billion. Twa said the latest losses were explained by a the unprecedented reduction in airline traffic and related passenger yields arising from the effect of the persian Gulf War and the economic recession along with the Short term Impact of reallocating twas Fleet from the London routes to other conversion rates London up . Dollar to other _ a fridays rates for the a a a a currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $354.25 an ounce Silver at $4.03. British Pound. German Mark French franc. Dutch gutted or. Belgian franc. Italian lira Swiss franc. Greek drachma. Turkish lira. Saudi arabian Nyal. Spanish peseta. Portuguese escudo Canadian Dollar. Austrian Schilling. Norwegian Krone. Danish Krone. Nov. 7 nov. 8 1 7780 1.7690 16350 1.6420 5 5058 5.6285 1s375 1.8545 33.74 33.89 1,22850 1,238.45 1 4450 1.4515 .184.33 185.67 4,897.40 4,921.90 3 7502 3.7502 .102.90 103.60 .140.62 141.56 1 1225 1.1226 .11.5075 11.58 64180 6.4570 6.3435 6.3795 these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.61 through monday based on fridays noontime Price fixing. Nasa suspends ties with firm Cedar rapids Iowa apr Nasa has suspended business with a Rockwell International corp. Division that was indicted on charges of padding Bills for work on the space shuttle. The space Agency on Friday barred Rockwell Scollins commercial avionics division from further bidding on government business until Nasa reviews Collins contract performance. Rockwell has denied wrongdoing in its dealings with the National aeronautics and space administration. The indictment was handed Down oct. 31 on 15 counts including conspiracy mail fraud wire fraud and filing false claims. Deeper . Interest rate cuts would lift Economy experts say by Teresa Simons Robinson United press International Washington a although official Washington can t agree on what to do about the nations ailing Economy Many economists say the solution is relatively Clear. To boost consumer spending they believe the Economy needs even deeper interest rate cuts a perhaps bringing the Federal Reserve s Benchmark discount rate As far Down As 3 percent or 4 percent. . Consumers traditionally have been vital to any economic rebound because they buy two thirds of the nations goods and services. Economists say the feds reduction of the discount rate to 4.5 percent last week will Likely be ineffective. A the fed has been asleep at the switch. They be done too Little too late a said Jack Albertine who Heads a Washington d.c., economic forecasting firm that bears his name. A to really help revive the Economy the Central Bank will have to Cut some More a a said Allen Sinai chief economist for the Boston co. In new York. Many economists also prescribe a minimal dose of help from the government. That could include extended unemployment benefits a social Security tax Cut for the poor and Middle class and somewhat higher spending on roads and Bridges. Normally economists say they would suggest far More help from the government. But after significant deficit spending in the 1980s, the government has blown its wad. Big spending now would get everyone worried and Likely Hurt the Economy More than help it economists say. But even with modest government action there a a rub any plan to Cut taxes or boost government spending is Likely to take months to Clear Congress. Hence economists look to the Federal Reserve to get the nation out of recession. Many economists reject the argument a now popular in Washington a that the fed is limited in its Power because consumer Confidence is so Low. True Consumers Are saddled with a higher debt Load than they were a decade ago. But said Robert Dederick chief economist for Northern Trust in Chicago a past experience suggests it a rate Cut will be economists note that the fed still has room to move. Past Federal Reserve governors often have reduced the discount rate and other key interest rates below the rate of inflation at the end of a recession. But the discount rate now is 1.5 percentage Points above inflation which is running at about 3 percent. The fed has been concerned that too Many rate cuts would cause an inflationary spiral and lower the value of the Dollar in foreign markets. Economists say inflation is Well under control however. And if the value of the Dollar goes Down foreign companies May not invest As much in the United states but . Products will be More competitive in world markets. Here a a closer look at what economists say Washington could do a Congress could authorize a mild boost in Federal spending for roads and Bridges a perhaps $10 billion or $20 billion. That would do wonders for the de key interest rates the Federal Reserve lowered its key Bank lending rate from 5.0 percent to 4.5%, an 18-year Low. That prompted major Banks to lower their prime lending rate to 7.5%. That a the rate Bankers use to calculate a Range of consumer and business Loans such As student Loans Home equity Loans and some types of car Loans. Discount rate interest the Federal Reserve charges commercial Banks for Loans. I prime rate the rate Banks historically charge their Best customers. Chart shows general Industry rate. 1986 1987 1988 1989 1990 1991 pressed construction Industry and also would increase the efficiency of the nations private sector. Or Congress could simply order that authorized projects be seeded up so that Money would be spent now instead of later. Economists say the extra spending would Pale compared with this years projected $350 billion Federal deficit or the nations $5.5 trillion Economy. However Laurence Meyer who runs a St. Louis economic forecasting firm that bears his name advised a if you re going to raise the deficit make sure it creates a a a tax Cut is Dicey because it leads to political wrangling about where taxes should be Cut which can take forever to Settle. But most economists still say a Small tax Cut a not a budget Buster a would help if directed at the poor and Middle class where spending is More Likely to result. Social Security taxes May be a Good a Martha p. Hernandez place to Cut. A that tax is so regressive and we have a huge surplus in the social Security Trust funds a said the Boston Sinai. A Cut in the capital gains tax on the profits from sales of stocks Bonds and real estate also would provide some stimulus economists said but it would he of a More Long term nature. A finally most economists still stand behind an Extension of unemployment benefits for the Long term jobless a a practice that never has been used so Little As in this past recession according to Gary Burtless a Brookings institution economist. A a it Sok to make those benefits More generous because ultimately go away when we get Back to full employment so they wont increase the structural deficit a Meyer said. He said president George Bush made a a mistake when he vetoed a jobless benefits Bill. Now sensing that Bush is eager to erase his image As a Scrooge democrats Are expected to be tougher in negotiations for a new Bill
