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<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'>As most people know who have been paying attention, the <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> economy is
the huge turd sinking to the bottom of the toilet bowl. Former Fed chairman,
Alan Greenspan, says the <st1:country-region w:st="on"><st1:place w:st="on">United
States</st1:place></st1:country-region> is on the “edge” of a
recession. I say we are full blown in the middle of one now. Current Fed
chairman, Ben Bernanke, is talking another rate cut. These rate cuts are merely
Curads on a hemorrhaging arterial wound. This economy is going to bleed out.
The wealthy, as usual, will not be affected, but the rest of us poor slobs will
see the price of everything go up and our wages either remain stagnant or go
down. You can thank our corrupt <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
government and their idiotic mantra of letting the market regulate itself for
this fiasco. Also, Alan Greenspan should be taken out and horse whipped to
within an inch of his miserable life for seeing this shit on the horizon and
doing nothing about it.<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'>Kris<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><st1:place w:st="on"><st1:PlaceName w:st="on"><span
class=newsstorytitle><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Dollar</span></font></span></st1:PlaceName><span
class=newsstorytitle> <st1:PlaceType w:st="on">Falls</st1:PlaceType></span></st1:place><span
class=newsstorytitle> Against Euro on Speculation Fed Will Cut Rates<o:p></o:p></span></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>By Lukanyo Mnyanda<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Feb. 15
(Bloomberg) -- The dollar fell against the euro, headed for its biggest weekly
loss this year, on speculation the slowdown in the <st1:place w:st="on"><st1:country-region
w:st="on">U.S.</st1:country-region></st1:place> economy will prompt the
Federal Reserve to keep cutting interest rates. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> currency
traded near a one-week low against the euro before a report economists say will
show consumer confidence dropped last month. The dollar declined after Fed
Chairman Ben S. Bernanke yesterday signaled the central bank may lower interest
rates again to avert a recession. The yen weakened after stocks in Asia
rallied, boosting demand for higher-yielding assets purchased with loans made
in <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region>.
<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>``The
market has taken on board Bernanke's bleak assessment of the <st1:country-region
w:st="on">U.S.</st1:country-region> economy,'' said Jeremy Stretch, senior
market strategist in <st1:City w:st="on"><st1:place w:st="on">London</st1:place></st1:City>
at Rabobank Groep, the third-biggest Dutch bank. Traders ``have scaled up
expectations of rate cuts'' and the currency may fall to $1.48 to the euro
today. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The <st1:country-region
w:st="on">U.S.</st1:country-region> currency fell for a second day and traded
at $1.4685 per euro by 7:18 a.m. in <st1:State w:st="on"><st1:place w:st="on">New
York</st1:place></st1:State>, from $1.4643 yesterday. It has lost 1.3 percent
this week, the most since the period ended Dec. 28. The dollar was at 107.71
yen, from 107.87. The U.S. dollar index traded on ICE futures in <st1:State
w:st="on"><st1:place w:st="on">New York</st1:place></st1:State>, which tracks
the currency against six major counterparts, fell to 75.99, the lowest since
Feb. 5. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The yen
earlier fell against 13 of the most-active currencies, dropping the most
against the South African rand and Australian dollar, favorites of the carry
trade. It traded at 158.15 versus the euro, from 157.95. <o:p></o:p></span></font></p>
<p><st1:place w:st="on"><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Rand</span></font></st1:place> Strengthens <o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The
dollar also fell the most against the South African rand and headed for its
first weekly loss this year against the currency of <st1:place w:st="on">Africa</st1:place>'s
largest economy. The rand benefits from its interest rate of 11 percent and
from rising gold and platinum prices. The dollar dropped to 7.65 versus the
rand, from 7.70 yesterday and was down 0.6 percent at 90.73 U.S. cents per
Australian dollar. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> currency
declined after Bernanke said yesterday the Fed ``will act in a timely manner as
needed to support growth.'' The world's largest economy is ``clearly on the
edge'' of a recession, former Fed Chairman Alan Greenspan said in <st1:City
w:st="on"><st1:place w:st="on">Houston</st1:place></st1:City> yesterday. The
economy is at ``stall speed'' and the odds of a contraction are ``50 percent or
better,'' he said. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The
Reuters/University of <st1:State w:st="on"><st1:place w:st="on">Michigan</st1:place></st1:State>
index of consumer sentiment probably dropped to 76, from January's 78.4
reading, according to economists polled by Bloomberg. Another report today may
show international buying of <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
financial assets slowed in December, according to a Treasury survey. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Rate Bets
<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Futures
on the Chicago Board of Trade show 36 percent odds the central bank will lower
its target for overnight lending between banks by 0.75 percentage point to 2.25
percent by March 18, compared with a 30 percent chance yesterday. The remaining
odds are for a 0.5 percentage point reduction. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The yen
fell after the Bank of Japan voted unanimously today to keep interest rates
unchanged at 0.5 percent, as expected by all 42 economists in a Bloomberg News
survey. Governor Toshihiko Fukui told reporters after the decision that
inflationary risks are low and the global economic outlook is becoming more
uncertain. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>``We're
seeing large swings in global stock and currency markets because of a high
aversion to risk,'' <st1:City w:st="on"><st1:place w:st="on">Fukui</st1:place></st1:City>
said. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The
Japanese currency also declined as stock markets in <st1:place w:st="on">Asia</st1:place>
advanced, boosting demand for higher yielding assets. The Morgan Stanley MSCI
Asia Pacific Index rose 0.4 percent today, pushing its gain the last two days
to 4.3 percent. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>``Things
are calming down and people are moving money to higher yielding assets,'' said
Michelle Joubert, a trader in <st1:City w:st="on"><st1:place w:st="on">London</st1:place></st1:City>
at Currencies Direct Ltd., which manages foreign-exchange transactions for
corporate clients and wealthy individuals. ``The carry trade is weighing on the
yen'' and the Japanese currency may trade as low as 115 to the dollar in the
next three months. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>In carry
trades, investors buy higher-yielding assets with money borrowed in countries
with low interest rates. The strategy is considered risky because currency
fluctuations can erase the profit between borrowing and lending rates. <st1:country-region
w:st="on"><st1:place w:st="on">Australia</st1:place></st1:country-region>'s
benchmark rate is 7 percent. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>To
contact the reporter on this story: Lukanyo Mnyanda in <st1:City w:st="on"><st1:place
w:st="on">London</st1:place></st1:City> at <span class=httplink><a
href="mailto:lmnyanda@bloomberg.net">lmnyanda@bloomberg.net</a></span> <o:p></o:p></span></font></p>
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style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
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