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...President declared himself "frustrated" by the lack of progress but stopped short of holding the summiteers in Washington during the August recess to complete the job. Now, with the threat of a recession heightened by a leap in oil prices triggered by the Persian Gulf crisis, Bush and Congress have only 20 legislative days left before the Gramm-Rudman-Hollings deadline falls. If no agreement can be reached on paring the deficit to $64 billion by Oct. 1, across-the-board spending cuts -- the so-called sequester -- will go into effect, closing airports, canceling children's vaccinations and forcing federal...

Author: /time Magazine | Title: A Deficit of Guts | 8/13/1990 | See Source »

...need to draw a line in the sand," says Les Aspin, chairman of the House Armed Services Committee. General George Crist, who directed U.S. planning for defense of the Persian Gulf until he retired in 1988, agrees: "We have to show Saddam Hussein he can't take another step." The question is how. Freezing Iraqi and Kuwaiti assets and officially deploring Saddam's behavior are sensible first steps, but largely pro forma. More pressure will be required for Saddam to feel the bite...

Author: /time Magazine | Title: Can the U.S. Turn Off Iraq's Oil? | 8/13/1990 | See Source »

...officials believe that the only truly effective course would be to keep Iraqi oil bottled up at the well. This could be done by cutting off the three outlets through which Iraq exports its crude: two pipelines through Saudi Arabia, another leading to Turkey, and ships in the Persian Gulf. Oil-industry and academic experts say Iraq would collapse under such pressure in a few months or a year...

Author: /time Magazine | Title: Can the U.S. Turn Off Iraq's Oil? | 8/13/1990 | See Source »

With hindsight it looks so obvious, so wickedly brilliant. There sat Kuwait, fat and ripe, bulging with enormous reserves of oil and cash, boasting an excellent port on the Persian Gulf -- and utterly incapable of defending itself against Iraq's proficient war machine. Saddam Hussein, hungry for money but greedier still for regional dominance, knew before the first of his soldiers crossed the border that it would be a walkover -- and it was. In 12 hours, Kuwait...

Author: /time Magazine | Title: Iraq's Power Grab | 8/13/1990 | See Source »

...misbehaves. A loner, he has rarely if ever been told no -- probably because the few who tried to do so tended to wind up dead. So no one can be very sure what, if any, message will derail his ruthless drive to be the paramount power in the Persian Gulf. Fortunately, Saddam has few friends around the globe, and his truculence is knitting unlikely partners into a broad-based opposition...

Author: /time Magazine | Title: Iraq's Power Grab | 8/13/1990 | See Source »

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