The Press Democrat from Santa Rosa, California on December 22, 1981 · 18
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The Press Democrat from Santa Rosa, California · 18

Santa Rosa, California
Issue Date:
Tuesday, December 22, 1981
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PRESS Tuesday, Decemhe r 22, 1981 usiness Fed policy criticized as recession cause NEW YORK (AP) What keeps interest rates high, worsens the federal budget deficit, adds to unemployment, forces industrial machinery into idleness, thwarts investment and in general impedes economic recovery? The answer, according to one long-time student of such matters, is ... Federal Reserve policy. Yes, Fed policy. But wait. Isnt the Fed. monitor of the nation's money supply, doing its best to get the economy back on track? Isn't it trying to squeeze out inflation and direct savings into productive uses? Isn't it only trying to rein-in an economy that had gone on a wild spending spree? Have it your way, which is part of the accepted rationale for Fed actions, but don't expect John Wright to join you. Wright, whose Wright Investors' Service runs a billion dollar portfolio and advises many individuals and institutions, thinks the Fed's ideas are as damaging economically as agent orange is ecologically. He has his reasons. To begin with current affairs, rather than citing past actions of the Fed, Wright observes that the nearly $400 billion of deficits expected from fiscal 1981 through fiscal 1984 are "so enormous that the sum simply cannot be supported by a viable U.S. economy." Why do such deficits persist despite attempts to lessen them? Because, declares Wright, "the Federal Reserve Board pursues an unnecessarily restrictive monetary policy." Supply-side programs, he continues, have no chance of sucess unless there is a prompt and sizeable drop in interest rates, "which are still substantially higher than the levels which in 1974-1975 caused the worst recession since the depression of the 1930s." The premise that high interest rates and recessions are necessary to stop inflation, says Wright, is false. Recessions, he agrees, do bring down inflation, but only at the price of lasting economic damage, and great human misery. Moreover, they reduce tax revenues, run up welfare costs, and add to the overall cost of unemployment benefits. They waste billions of hours of human and industrial resources, thus subtracting from potential revenues. Because of needlessly high interest rates, he asserts, the federal debt burden soon will become insupportable. .1. ' 4 s. It , if j- 1 7 I i 'Marketing genius' sells to businessmen Richard Thalheimer and one of his catalog items SAN FRANCISCO (AP) Richard Thalheimer smiled, snapped his fingers and the light went on courtesy of one of the gadgets to be found thumbing through The Sharper Image mail order catalog that's made him rich. When Thalheimer. 33, talls himself a marketing genius, it's hard to argue. The switch is one of 170 items available through Thalheimer's catalog business, started in 1977 with first-year sales of $250,000. Sales hit $35 million this year. "It's fun, but it's useful," Thalheimer said about the sound-actuated light switch selling for $34 as a burglar-stopper. And if that doesn't stop them, try a suit of Spanish armor for $2,450, or another new item a lightweight bullet-proof vest that Thalheimer says will stop a .45-caliber bullet at point-blank range. Most of Thalheimer's items, however, are functional and many are electronic like a runner's watch that gives you an instant pulse readout. You can also buy a pillow that looks like a BMW automobile, a cordless telephone or an executive chair modeled after a seat found in imported sports cars. With an average sale of $160, Thalheimer targeted a specific market businessmen between the ages of 25 and 50 with "upscale incomes" between $25,000 and $10,000. This recession-proof slice of the market partly accounts for the vitality of The Shaper Image, he says. Sales more than doubled in the past year, while Thalheimer said other mail order businesses grew 15 per cent. Thalheimer was a Hasting Law School graduate who decided he didn't want to spend 30 years as a lawyer before heading a successful business. "I wanted to have a successful business in five years," he said. After peddling typewriter ribbons door-to-door in San Francisco's financial district. Thalheimer hit on the idea that blossomed into The Sharper Image. He placed a $200 ad for a $29 stop watch in a runner's magazine, an investment that returned a $500 profit. This year's advertising budget was $6 million. Thalheimer keeps the 106-employee operation simple, using his tastes as a guide, tracking down products, writing the ads and even answering the phones. Gold lacks luster as investment NEW YORK (AP) Gold has lost its glitter to many investors. Even heightened tensions this week in Poland and the Middle East, the type of events that in the past have sent nervous investors scurrying to bullion as a safe haven for their funds, failed to change analysts' bleak outlook for the course of gold prices. "Gold is a neglected investment for good reason," says James E. Sinclair, a partner in Sinclair Securities Co.. a bullion dealer in New York. Even long-time holders of gold "are getting tired and bored," he adds, saying the outlook for the precious metal "at best is neutral." After a martial-law regime was created in Poland on Sunday, gold bullion shot up to $430 a troy ounce at the start of trading in Hong Kong, a gain of nearly $22. But by the time Hong Kong markets closed, the gain had been reduced to $13.43 a troy ounce, and at the end of the trading day in New York, gold was up just $6 50 an ounce from the previous session, at $413 25. Not that long ago, gold prices would have taken off for a sustained rally on the heels of developments such as the Polish crackdown on the independent labor movement and the Israeli annexation of the Golan Heights. For example, gold prices soared from be low $380 a troy ounce in early November 1979 to a record $875 an ounce during trading on Jan. 21. 1930, as Soviet troops moved into Afghanistan and Iranians seized U.S. hostages in Tehran. But during that peri- k I 117 1923. bigTALIshort ItGUtAt WIN art Ki vzn ir W"5 M Moo St 30-6 (41S) W1I7I !?5 m P. If M 13S5Pet. EIyINo. PCTAIUMA PAINT CO. CUSTOM TINTS 763-2795 od, inflation was also spiraling. with no relief in sight. While interest charges , , dim tl , , UJ " nm make it costly to buy f A gold on credit, the pre- fStf cious metal provides no f J D jHJV,VTVi French Continental Restaurant 1 "-j fcl 1 1 tl 521-525 College Ave., Santa Rosa I, Vlj j I,,,,, j ,1 I I 1 ojg- sJiPiO July vfi.t-r j-- ' i- r Joseph Keller and Helmut Pauer wish jfi.;i T'twi.'"- j t . ,. eur faithful customers a ! fe J - '4 Merry Christmas and Happy New Year! "' Irt-SS.. Tj JJ-?-5-'; LUNCH 7, r, DINNER , U-'"! ' X C' ''0T:'X RMWTiUonj Suoffj Phone 5264233 HJ-JS " ' 'Jii "T ' , If you would like to personally operate your own business and t-your own bo. consider Chick-fil-A.. a unique dimension in the fat-fod chain industry jver the country, pt-fipie are buin; Chic k-fil-A's tasty hone- lec breast of chicken and ich M-red on a hun or in a box lunch Completing the fast service menu i a ariety of salads, home made lemon pie. soft ice cream, fre nch fries, frc-h lemonadi-and standard bt-verasre Chick-fil-A curnTtly has over 230 units m op-ration and i- ex-pandir.g to prime shopping mail locations at rs the nation Put your U hef in hard work and jour entrepreneurial skill-' to work Lr jou in building your own business with Chick-fil-A Only t; ix'f) vsr.rkiny capital is required to Utome a partner and p-r-ate a ("hick-fil-A Candidate- should have three ears roilere or equivalent bu-ines- experif nte in retailing and or surx rvi-irv management - ' restaurant or food srue experience not required . You will receive formal training, a minimum $12,000 yearlv income plus a " V) profit split 'afte r upe-nM- and fe-e-s to ( hic k-ftl-Ai. incentive programs, protection of your S j.(j0 operating capital and a continuing assistance program from rhirk-f.I-A. Inc every thing you need for a grip on ucre A Chick-fil-A mall restaurant will N opt-ning soon at Santa Rona Mall in Santa Roa. California. If jou are interested in this loration or i-h to move to one of many new (hick HI A Wa-tions. call or send a resume t j Huic-H Woods Din-ctor f II jman R-rfurce! ( hick r,!-A. Inc Virginia Avenue H.ip- ille. Cfeorgia 30Tt tOI'Tt.VW)3 Those days, saving money on car insurance is as close as your nearDy JCFnney store Wnere JCPt'nne Au!o Insurance is now for sae To f nd out exactly how much you ma be able to sa'e with our insurance . cJoo by the Insurance Center and speak to one of our' representatives bu II soon see our low rates could save you as much as $50 or $60 a year from the mmute you insure with us Besides wfxch, after driving with a JCFnney Insurance Bolcy for three straight years without causing an accident, even if you do cause one after that, v.e won't raise the ra'es on tha! policy because of it. So the next time you're out for a drive, see if you can save yourself some money on car insurance Come to the Insurance Center at the JCftnney store in Ft'ta'uma Penney-Wise Protection, insurance for the smart driver. Petaluma Plaza, 763-1 1 22

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