EURO LEADERS COMPLAINING EURO IS TOO STRONG AND THREATENS EURO-ECONOMY

NYTIMES/REUTERS: EU Leaders Warn on Euro

The European Commission may cut its growth forecast for the euro zone economy this year, Luxembourg's prime minister said on Saturday, as other EU leaders voiced concern about the euro's strength.

Speaking on the sidelines of ceremonies to mark Malta's January 1 entry into the euro zone, French EU Minister Jean-Pierre Jouyet said the euro had rallied too fast.

Jouyet came close to renewing French criticism of the European Central Bank's interest rate hikes last year by suggesting the Eurogroup of EU finance ministers should "see if the (ECB's) inflation target is appropriate in the euro zone."

Jouyet's latest comments mark an adaptation of earlier calls from French President Nicholas Sarkozy to make growth part of the ECB's mandate -- proposals that fell on deaf ears in Europe and met with a particularly strong rebuff from Germany.

EVEN ITALY'S SOCIALIST PM AGREED THAT THE EURO IS TOO STRONG - AND THAT IT'S BECAUSE THE ECB RATES ARE TO HIGH AND EURO SUPPLY TOO SMALL:

Italian Prime Minister Romano Prodi made comments implying he urged against further rate rises when he met ECB President Jean-Claude Trichet in Malta, despite a surge in energy and food prices that has pushed euro zone inflation above the ECB's target ceiling.

"There is great uncertainty. There could even be falls (in prices) but the dominant feeling is the uncertainty of the markets," Prodi said. "In a situation of uncertainty, it is clear that central banks must act with caution to minimize risks."

• ALL THIS REINFORCES WHY CALLING THE DOALLR "WEAK" IS A MISNOMER;
• THE DOLLAR ISN'T WEAK; IT'S GOTTEN CHEAPER THAN OTHER CURRENCIES AND THAT HELPS THE US ECONOMIES IN WAYS THE US ECONOMY NEEDS HELP:
• BY MAKING OUR GOODS AND SERVICES CHEAPER TO EXPORT -
• AND THIS MEANS WE WILL INCREASE OUR PRODUCTION AND PROFITS.
  
• THIS IS ESPECIALLY GOOD AS OUR DOMESTIC HOUSING MARKETS ARE NOT PERFORMiNG VERY ROBUSTLY AT THE PRESENT TIME.
  
• AND IT CREATES A HUGE INCENTIVE FOR ALL THOSE EXPATRIATED DOLLARS TO COME HOME NOW, TOO.
  

THE "WEAK"/CHEAPER DOLLAR IS GOOD FOR THE USA; THE "STRONG"/EXPENSIVE EURO IS BAD FOR THE EU.

THE FED IS NOT TAKING STEPS TO "STRENGTHEN" THE DOLLAR - THAT'S GOOD.

THE ECB IS TAKING STEPS TO FURTHER STRENGTHEN THE EURO - THAT IS GOOD FOR THE USA AND BAD FOR THE EU.

AND BIZARRE.