It''s said that gold doesn''t pay interest, but it''s the U.S. dollar that doesn''t

a href=http://www.reuters.com/newsArticle.jhtml?type=topNewsamp;storyID=4200365...

By Stella Dawson

DAVOS, Switzerland, Jan. 24 (Reuters) -- Euro zone finance ministers,
worried at the strength of the euro, discussed an interest rate cut
with the head of the European Central Bank this week, French Finance
Minister Francis Mer said on Saturday.

However, ECB President Jean-Claude Trichet gave no sign that a rate
cut was pending, saying there was plenty of cheap money in the euro
zone, and a top International Monetary Fund official said neither ECB
rate cuts nor intervention in currency markets were needed right now.

European finance ministers fear sharp movements in the euro, up more
than 8 percent against the dollar in the past two weeks, could stifle
euro zone growth. Mer was the first policymaker to acknowledge that
a rate cut was a topic.

quot;We discussed this subject,quot; Mer told a news conference at the World
Economic Forum's annual meeting.

The issue came up last Monday at a Eurogroup meeting in Brussels
with Trichet, where euro zone finance ministers discussed the soaring
euro ahead of a meeting of finance ministers and central bankers of
the Group of Seven (G7) most developed economies in Florida early
next month.

European ministers are seeking support from their G7 colleagues for
calming the rapid currency moves -- whether through a G7 statement
stressing currency stability is desirable or a commitment to
intervene if needed. The euro zone's key interest rate stands at 2
percent, compared with 1 percent in the United States.

Politicians cannot dictate monetary policy to the independent central
bank. The ECB's Governing Council is next due to discuss interest
rates on Feb. 5, the day before the G7 meeting begins.

Trichet said on Saturday that by some standards euro zone monetary
policy was easy.

quot;We have today a financial environment which is exceptionally
favourable in terms of historical records,quot; Trichet told a panel at
the meeting of the world's top business leaders and policymakers at
this Swiss ski resort.

Dutch Finance Minister Gerrit Zalm also served to dampen expectations
for a rate cut, saying in an interview with Reuters that a new IMF
study shows the euro zone recovery may be able to weather the impact
of the latest euro strength.

The 12-nation economy is more protected from the ravages of currency
swings than it was before monetary union, according to the IMF study.
quot;That gives some confidencequot; that European growth will not be
destroyed by the current euro level, Zalm told Reuters.

International Monetary Fund first deputy managing director Anne
Krueger told Reuters that policymakers should consider action to
temper currency moves only quot;in the most extreme circumstances.quot;

quot;I know of no evidence as yet that this is the most extreme of
circumstances -- or even close. I emphasise 'as yet',quot; Krueger said.
She said foreign exchange rates should be left to markets and that
the euro was not far from its 30-year average against the dollar on a
real effective exchange rate basis. At its current level -- the euro
was trading at 1.2590 against the U.S. dollar late Friday -- quot;there
is a strong presumption againstquot; currency intervention, Krueger said.

When asked whether a euro/dollar exchange rate of $1.30 would
change her view, Krueger said no.

In his panel discussion at Davos, Trichet reiterated a statement on
currencies issued after the Eurogroup meeting on Monday. quot;We
particularly stress stability and we are concerned about excessive
moves.quot;

Zalm said he hoped the G7 finance ministers would use this wording
as template for a communique on currencies. quot;I hope confirmation
that stability of exchange rates is the best thing for the world
economyquot; will be the outcome of the G7 gathering in Florida on
February 6-7, he said.

----------------------------------------------------

To subscribe to GATA's dispatches, send an e-mail to:

gata-subscribe@yahoogroups.com

To unsubscribe, send an e-mail to:

gata-unsubscribe@yahoogroups.com

----------------------------------------------------

RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS

Free sites:

a href=http://www.jsmineset.comhttp://www.jsmineset.com/a

a href=http://www.cbs.marketwatch.comhttp://www.cbs.marketwatch.com/a

a href=http://www.mineweb.com/http://www.mineweb.com//a

a href=http://www.gold-eagle.com/http://www.gold-eagle.com//a

a href=http://www.kitco.com/http://www.kitco.com//a

a href=http://www.usagold.com/http://www.usagold.com//a

a href=http://www.GoldSeek.com/http://www.GoldSeek.com//a

a href=http://www.capitalupdates.com/http://www.capitalupdates.com//a

a href=http://www.goldenbar.com/http://www.goldenbar.com//a

a href=http://www.silver-investor.comhttp://www.silver-investor.com/a

a href=http://www.thebulliondesk.com/http://www.thebulliondesk.com//a

a href=http://www.sharelynx.com/http://www.sharelynx.com//a

a href=http://www.mininglife.com/http://www.mininglife.com//a

a href=http://www.financialsense.comhttp://www.financialsense.com/a

a href=http://www.goldensextant.comhttp://www.goldensextant.com/a

a href=http://www.goldismoney.info/index.htmlhttp://www.goldismoney.info/index....

a href=http://www.howestreet.comhttp://www.howestreet.com/a

a href=http://www.depression2.tvhttp://www.depression2.tv/a

a href=http://www.moneyfiles.org/http://www.moneyfiles.org//a

a href=http://www.howestreet.comhttp://www.howestreet.com/a

a href=http://www.minersmanual.com/minernews.htmlhttp://www.minersmanual.com/mi...

a href=http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.htmlhttp://ww...

a href=http://www.goldcolony.comhttp://www.goldcolony.com/a

a href=http://www.miningstocks.comhttp://www.miningstocks.com/a

a href=http://www.mineralstox.comhttp://www.mineralstox.com/a

a href=http://www.321gold.comhttp://www.321gold.com/a

Subscription site:

a href=http://www.lemetropolecafe.com/http://www.lemetropolecafe.com//a

a href=http://www.hsletter.comhttp://www.hsletter.com/a

Eagle Ranch discussion site:

a href=http://os2eagle.net/checksum.htmhttp://os2eagle.net/checksum.htm/a

----------------------------------------------------

COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS

Centennial Precious Metals
3033 East 1st Ave.
Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net

Investment Rarities Inc.
7850 Metro Parkwa
Minneapolis, Minnesota 55425
a href=http://www.gloomdoom.comhttp://www.gloomdoom.com/a
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com

Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
a href=http://www.kitco.comhttp://www.kitco.com/a

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com

Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
a href=http://www.milesfranklin.comhttp://www.milesfranklin.com/a
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
a href=http://www.buycoin.comhttp://www.buycoin.com/a
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

----------------------------------------------------

HOW TO HELP GATA

If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.

By check:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA

By credit card (MasterCard, Visa, and
Discover) over the Internet:

a href=http://www.gata.org/creditcard.htmlhttp://www.gata.org/creditcard.html/a

By GoldMoney:

a href=http://www.GoldMoney.comhttp://www.GoldMoney.com/a
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L

Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled quot;GATA.quot;

GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.