DECLINE OF THE U.S. DOLLAR

The world price of gold, like the world price of oil, is expressed in US Dollars. Therefore when the value of the dollar declines the price of gold (and oil) increases. The price of gold also generally trends up when buyers and sellers of gold believe that the value of the dollar is likely to decline in the future.

From the end of 2001 to January 2004 the dollar fell 30% percent against the euro and 19% against the yen. There is widespread belief among economists, investors, and others that over the next several years, with ups and downs, the dollar will continue its downward trend. (Gold industry executives also expect the dollar to decline, and some mining companies are therefore withholding a portion of their production from the market, to sell at a later time, when they expect the price of gold to be higher. Within limits, this tends to be a self-fulfilling prophecy; withholding gold drives the price up.)

WORLD READIES FOR NEW YEAR'S PARTIES

 SYDNEY: The first of an expected 1.5 million New Year's revelers pitched tents and opened picnic baskets in Sydney on Thursday to get one of the world's biggest parties started, bidding farewell to a tough year and welcoming a new decade.  The annual fireworks extravaganza over the city's landmark harbor bridge and opera house are the centerpiece of Australia's celebrations, and generate some of the most striking images from a night of revelry across the globe.  Smaller fireworks displays and partying are planned across Australia and the South Pacific, the first region to greet each new day because of its proximity to the International Date Line.

In New Zealand, dance parties, bands and fireworks were planned in the main cities, and live entertainment in many holiday spots, including the southern tourist spot of Queenstown. In the capital, Wellington, celebrations will include a display by world unicycle games competitors.

Asia will be partying, too, though probably not as hard as most of Europe and the Americas. Pyrotechnics displays were planned to illuminate Hong Kong's crowded skyline, high-glitz parties were planned in Singapore and thousands were expected to gather at Indonesia's national monument in the capital, Jakarta, for a fireworks show.

Millions of Japanese will welcome the new year by flocking to shrines to pray for good fortune in 2010. In Tokyo, the Sensoji temple was draped with banners greeting the new year in preparation for traditional new year's day ceremonies when thousands of people come to pray for good fortune. Shoppers mobbed a city, stocking up on seafood and other items. The celebrations will mark the end of a year many may be glad to put behind them.

The global financial crisis bit hard in 2009, sending economies around the world tumbling into recession and causing millions to lose their jobs and house foreclosures to rise. Signs of recovery emerged late in the year, giving hope that 2010 would bring better times.

In Sydney, crowds defied gray skies and drizzling rain in the middle of summer to line parks and public places along the harbor foreshore. High-rise apartments with water views prepared for toney parties. Revelers were asked to wear something blue, the color chosen to match the fireworks show's theme: Awaken the Spirit. "Sydney has an amazing spirit -- soulful, sexy and sophisticated and we want to celebrate and awaken her spirit for the new year ahead," artistic director Rhoda Roberts said. 

In other cities such as Melbourne and Adelaide, revelers sweltered in 100 F-degree heat (38 C degree heat).  Thousands of police were deploying across Australia to guard against alcohol-fueled misbehavior, with commanders warning that troublemakers should stay home or face jail.

BEIJING - Chinese President Hu Jintao urged maintaining steady and relatively fast economic development in a New Year address broadcast Thursday to domestic and overseas audience via state TV and radio stations.

Chinese President Hu Jintao delivers a New Year address broadcast to domestic and overseas audience via state TV and radio stations in Beijing on Thursday, December 31, 2009, the 2010 New Year Eve. [Xinhua]

He said in 2009, in the face of global financial crisis, Chinese people of all ethnic groups united together and firmly adhered to maintaining steady and relatively fast economic development as the primary task in economic work.

"People's life continued to improve and the society was kept harmonious and stable," said Hu in the address, titled "Jointly Create A Beautiful Future of World Peace and Development," broadcast by China Radio International, China Central Television, and China National Radio.

Hu said that the year 2010 is the last year of the country's 11th Five-Year Plan period and the country will continue to implement a proactive fiscal policy and a moderately easy monetary policy.

Hu added that the country will stick to the guidelines of "one country, two systems", "Hong Kong people governing Hong Kong", "Macao people governing Macao" and a high degree of autonomy to maintain long-term prosperity and stability of Hong Kong and Macao.

He said the policy of "peaceful reunification and one country, two systems" will be adhered to and exchanges and cooperation across the Taiwan Strait will be enhanced to bring more benefits to people on both sides.

"I'd like to solemnly reiterate that China will hold high the flag of peace, development and cooperation and firmly adhere to the foreign policy of maintaining world peace and promoting common development," Hu said.

He said China will develop friendly cooperation with all other countries on the basis of the five principles of co-existence and continue to actively participate in international cooperation on issues such as coping with the international financial crisis and climate change.

"We will work with people of all countries to jointly promote the construction of a harmonious world of lasting peace and common prosperity," said Hu.

He said at this moment, there are still people in the world who are suffering from war, poverty, disease and natural calamities. The Chinese people are deeply sympathetic and will continue to do all they can to help them.

An article by Hu on Party building in a new situation will be published in Qiu Shi (Seeking Truth), an official magazine of the Communist Party of China Central Committee, on January 1, 2010.