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To: Haim R. Branisteanu who wrote (72391)	2/7/2010 3:34:04 AM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 74559

G-7 Leaders Try To Tamp Down Anxiety Over Global Recovery (Updates with comments on Greece by the Canadian finance minister in fourth paragraph and details about financial regulation and currency imbalances in paragraphs nine and 10) By Nirmala Menon and Nathalie Boschat Of DOW JONES NEWSWIRES IQALUIT, Nunavut (Dow Jones)--Group of Seven financial leaders Saturday tried to tamp down continued anxiety about the global economic recovery, with officials promising continued stimulus efforts and European leaders pledging to address public debt problems. The debt crisis in Europe, triggered by ongoing problems in Greece and other euro-zone countries, placed a brighter spotlight on the G-7 meeting here, prompting European leaders to say they are aggressively monitoring and addressing the debt situation. "We expect and are confident that the Greek government will make all the necessary decisions," said Jean-Claude Trichet, the European Central Bank president. Trichet added European members of the G-7 will "continue to monitor closely the implementation of these stability measures." Canadian Finance Minister James Flaherty lent the Europeans a hand, saying Greece's economy was of relatively small size. "So in global terms it's not of intense concern," he said. G-7 financial leaders also said they will continue providing support to their economies until the financial recovery has taken firm hold. "We are committed to maintaining support to the economy," U.K. Chancellor of the Exchequer Alistair Darling said. "We are confident that we are going in the right direction although we remain cautious." The G-7, which represents the major European and North American economies and Japan, said the global economy has improved but the financial recovery remains tentative. U.S. Treasury Secretary Timothy Geithner said European financial leaders were clear with the G-7 that they would manage the Greece situation with great care. He struck an optimistic tone about the economic recovery, despite mixed signals about the U.S. recovery. "The recovery came more quickly and stronger than expected," he said. The G-7 also discussed financial sector regulation and how to have the banking sector help pay costs stemming from the financial crisis, but disagreement remained on exactly how, officials said. Geithner, who came peddling a U.S. proposal to assess fees against financial firms, said G-7 leaders are committed to overhauling financial regulation "in ways that don't undermine prospects for recovery." Jean-Claude Juncker, chairman of the group of euro-zone finance ministers, said the G-7 agreed to leave unchanged their assessment of world currency markets. He added that the G-7's statement on currencies in its Oct. 3 communique released in Istanbul--a document that directly addresses China's manipulation of its currency--remains valid. The G-7 has recently become overshadowed by the larger Group of 20, which also represents large emerging economies such as China, India and Brazil. G-7 financial leaders said they will continue meeting despite being supplanted by the G-20, but will do so in a more informal fashion that won't regularly include the release of cooperative statements. Flaherty, the Canadian finance minister, said G-7 nations remain powerful players in the world economy that can act as "first responders" during a financial crisis. But leaders were careful to underscore the continued importance of the entity even as questions of its relevance swirl. The G-7 meeting in Canada's northern territory 1,300 miles north of Ottawa was decidedly different. Police presence was low-key. Security personnel at the Frobisher Hotel, where some of the delegations were staying, stood guard alongside native Inuit who were selling seal brooches and stone carvings to hotel visitors. Around town, locals put on igloo demonstrations while children played in the snow near G-7 meeting facilities, some of them jumping off 20-foot cliffs into snow drifts. Japanese Finance Minister Naoto Kan delayed his closing press-conference Saturday so he and his aides could go dog sledding on frozen Frobisher Bay. And unlike other meetings of world leaders, protestors did not make their way to Iqaluit, which is located on isolated Baffin Island and can only be reached by air in the winter. -By Nirmala Menon and Nathalie Boschat, Dow Jones Newswires; 867-222-2658; mark.anderson@dowjones.com (Meena Thiruvengadam, Andrea Thomas and Mark H. Anderson contributed to this article.)

To: Haim R. Branisteanu who wrote (72391)	2/7/2010 2:08:33 PM
From: Maurice Winn	Read Replies (3) \| Respond to of 74559

Geitner promises to return US$ to $300 an ounce from $1100. <Geithner also stood by a U.S. commitment to maintain a strong dollar. > Look out you gold bugs. On the other hand, he might be telling fibs and they have no intention or means to return the US$ to a "strong dollar". Or, he might simply mean compared with the desperately diluted state-run fiat fantasies of Japan, Britain and the rest who are in a currency race to the bottom, hoping to head off Zimbabwe which is in the lead. The US$ has been irredeemably weakened by the look of it, with umpty$trillions splattered from horizon to horizon. Mqurice