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To: Jim Willie CB who wrote (5117)	12/17/2003 1:23:26 PM
From: isopatch	Read Replies (2) \| Respond to of 108556

Agree. Total meltdown & disaster is the only thing that can engender the kind of day and night media pounding necessary to awaken the public to the grim reality that only a tiny percentage of the population currently realize is rapidly approaching. From a practical, nuts and bolts, real world, professional money managers perspective? The only question is: How long can Asian buyers continue to gobble up larger and larger helpings of new US government debt? IMO, they don't even have to stop. All that has to happen is for their current frenetic pace of buying to slow down. Of course, all that matters to those in positions of financial and political power is reelecting the corrupt incumbents - of both parties - next November. Billions have been invested over many successive reelection cycles to own their votes by foreign AWA US interests. And that foreign financial interest (via the billions spread around Congress from various foreign lobbies) may be what keeps the game going a bit longer than some of us might think. Remember, one of the largest lobbies that has invested heavily in US government officials for the past 10-15 years is the Chinese. Well, back to work for me. Will have to let you carry the ball on this issue. My posting time is very limited. So, can't hold forth very often (at length) about such things. Best regards, Isopatch

To: Jim Willie CB who wrote (5117)	12/17/2003 1:26:18 PM
From: Ruffian	Respond to of 108556

Dollar Falls to New Low Vs Euro Wednesday December 17, 11:55 am ET By Manuela Badawy NEW YORK (Reuters) - The dollar fell to record lows on Wednesday in a broad sell-off as low U.S. interest rates and record deficits continue to weigh on it. The euro, already moving higher against the greenback, was given a final boost to a record high against the dollar after a report circulated through the market citing unnamed European Central Bank (ECB) sources saying that the bank would not intervene unless the euro rose above $1.35, analysts said. ADVERTISEMENT "Things were relatively quiet this morning until this story came out suggesting from ECB sources that they did not see the need for any intervention unless the euro got to $1.35, and of course, whenever you put a number out there the markets get very excited," said Robert Sinche, global head of currency strategy at Citibank in New York. Market News International reported an unnamed source from the ECB saying that the bank is not concerned by the strength of the currency and could not predict any discussion of intervention unless the exchange rate rose above $1.35. Reuters was not able to confirm the veracity of this report with the ECB. There is some concern among some European firms that the strength of the euro could hinder any budding economic recovery. The U.S. currency dropped to hit record lows versus the euro to $1.2391(EUR=) according to Reuters data, before holding around $1.2371, down 0.55 percent from Tuesday's New York close. "It is the same trend but there is also a story about the ECB not intervening until the $1.35 level. It is an old theme but that just helped to explain the break. The bottom line is the euro is still in an uptrend, as we approach the $1.25 level there are going to be orders that will slow the move down," said Margaret Browne, currency strategist at HSBC in New York. With interest rates in the United States seemingly stuck at a 45-year low of 1 percent for the time being and record current account deficits pulling demand away from the greenback, the negative economic fundamentals lined up against the dollar remain firmly in place. In addition, as the end of the year approaches, the market tends to become illiquid so any market move could jolt the currency, analysts said. The dollar fell to a seven-year low against the Swiss franc in thin pre-holiday market to a low of $1.2540 francs (CHF=) a loss of 0.40 percent. The Sterling climbed for a second straight day to an 11-year high to $1.7628 (GBP=) against the dollar. The dollar fell to a fresh one week low against the yen to 107.27 (JPY=) a 0.2 percent low. Market players expect Japanese authorities to continue to intervene in the market, though some see the possibility of the yen eventually rising to the 105-yen level -- or even the 100-yen level -- as not out of the question. Government sources told Reuters on Wednesday that Japan was set to bolster its borrowing limit for its foreign exchange account -- the war chest it uses for yen-selling intervention -- from 79 trillion to 100 trillion yen for the fiscal year to next March. In addition, the Norwegian crown fell to a six-week low against the euro and also dropped against the dollar on Wednesday after the Norwegian central bank delivered a surprise rate cut. Norges Bank cut rates by 25 basis points to a record low of 2.25 percent. It also signaled a shift to an easing bias for interest rates from neutral. The Norwegian crown had fell as low as 8.2668 per euro (EURNOK=) from a pre-announcement level of around 8.20. Against the dollar it fell to 6.7061 (NOK=) from around 6.6534.