8 - Wedn.sday, May 15, 1985 - North Shore News

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Recovery at
what cost?

Dear Editor

The present surge in the
value of the American dollar
is a direct result of Paul
Volker’s decision to refuse to
monetize a substantial por-

“tion of the U.S. deficit. By

refusing to monetize the

. debt, which is the technical

.term of printing money to
pay its deficit, the U.S. is not
printing enough money to
make up its fair contribution
to the world supply of
icapital, The U.S. is instead
financing its deficit fro:
"foreign sources of capital. As
ithe U. S. has the best credit
tating iu the world, it has no
_ trouble borrowing, thus
creating’ large inflows of
oi the drive the dollar

The U.S, aiso gains a

-benefi it in that by engaging in |

“expansionary domestic fiscat
“policy, through which the

‘deficit is created, U.S.

employment - therefore falls.

‘The. U.S..is therefore using

the rest of the world’s money

to finance its own recovery. oY

can afford the large foreign
borrowing we might be able
to keep up with the U.S, The
tragedy for the world is that
they cannot afford to keep up
anc they are paying dearly
with inflation because most
of their prices are measured
in U.S. dollars; thus when
their currency falls they pay
more for most goods like oil.
Also since the Americans are
draining off such a large
amount of the world supply
of capital, there is Jess
available to the rest of the
world to finance their
recovery. Other countries,
therefore, suffer under
higher interest rates as their
economies stagnate.

The question then remains,
what gives the U.S. the right
to be so gluttonous with the
world supply of capital when
this creates massive
unemployment and inflation
for the rest of the world? If
they would. instead finance
their recovery by monetizing

their debt they would be only

risking minor inflation, if
any, instead uf revovering at
he expense of everyone else.

i Retrigerator oo ‘
cluding 8 cu. Mt

With a Bank of Montreal

HOME EQUITY LOAN

Son

Washer has 3 cycles,
' 5 wash/rinse temps,: :
+2 speed design & more.
. Timed Dryer has’3: cycles,
” 3 heat temps, procelain.
~ enamel drum, & more.”

Warehouse/Showroom:
PEN TO TI
2": PUBLIC -
_ bhkg behind the Avalon)
1075 Roosevelt Cres., N. Van

C : on PEON
pe

iY ‘ Buy
ou “8 ind
HOME FURNISHINGS ery aire

120, 985-8738

of Montréal Home Equity Loan: Plan. .

fe'used the equity ir in our ‘home’ to .
finance.our:new pool with.a Bank:

Now our monthly. Payments are more :
manageable. as .

‘MORE: MANAGEABLE MONTHLY
PAYMENTS. |

A ‘Bank of. Montreal Home Equity Loan.
can make:your monthly payments. lower:
than a regular instalment loan: By using the
equity in:your home you can amortize your

_ loan up to a period of 25 years, and take

advantage of lower interest rates. This

-could cut your monthly payments almost

in half. For example, payments ona $20,000
instalment loan carrbe as high as $475.80"
Payments on our:$20,000 Home Equity
Loan could be as low as $240.767*  -

WIDE CHOICE OF TERMS.

A Bank of Montreal Home Equity Loan
Plan also features a wide range of terms,
including the choice of a 5-year term.

‘Ani j you: can get f flexible orépayment
-alternatives-These options can allow you:
- to make’ prepayments: on the; ‘Principal:
— with no Penalty... :

BEST RATES OF ANY BANK

Home Equity: Loans offer lower fates”
than most regular instalment loans: And”
‘Bank of Montreal:-has the lowest Home”

‘ Equity Loan rates of any major bank.”
‘The Home Equity Loan Plan, from Bank’
of Montreal. It can be used for any worth- -..

while purpose. Home improvements. Anew -

cottage. A sailboat or recreational vehicle:
Debt consclidation. Or for investment *

. financing.

To find out more, come in to any
branch. of Bank of Montreal:

"15% interest, calculated monthly, 5 year term.
and amortization.

**14% interest, calculated monthly, 5 year term, 25 year

amortization.
Alldetails accurate as at Mar. 20, 1985, Subject to change :

without notice.
The borrower willbe responsible for: any costs involved

in arranging security.

| i Bank of Montreal
Doing more for you.

Pacey

—