THERE ARE FOUR PROBLEMS WITH ALL OF THIS. The first is that bad news overwhelms good. The collapse of one of the Carlyle Group's funds, and rumours of the impending demise of Bear Stearns, trumped Bernanke's announcement.

THE SECOND PROBLEM is that the Fed is a tiny player in the mortgage market. The $200 billion of mortgages Bernanke will be taking on are a drop in the ocean that is the $11 trillion mortgage market. And HE HAS ONLY ANOTHER $400 BILLION IN TREASURY NOTES TO PLAY WITH - if he is willing to have these mortgages make up his entire stock of assets.

THIRD, so long as house prices continue falling, the value of mortgages will continue falling. The Fed can't do much to stop that decline, and WE SEEM TO HAVE A LONG WAY TO GO before house prices reach some bottom, unsold houses are absorbed, and the market turns up.

FINALLY, the Fed might be fighting yesterday's war, when the problem seemed to be a liquidity crisis. The Fed first lowered interest rates to facilitate borrowing. No luck; long-term rates were immovable. It then made funds available to credit markets for very short periods on attractive terms. No luck; credit markets remained frozen. So now we have the offer of $200 billion of high-quality assets to replace those of lesser quality. TUNE IN AFTER A FEW WEEKS TO FIND OUT IF THIS HAS SIGNIFICANTLY EASED CREDIT MARKETS, OR MERELY CREATED A BIT OF EUPHORIA IN STOCK MARKETS.

Meanwhile, THE FED'S CRITICS ARE SAYING THAT THE ENEMY IS NO LONGER LIQUIDITY, BUT THE THREAT OF INSOLVENCY. We have already had billions in write-offs, and hundreds of billions more of such "marking to market" is coming. So steep will these write-downs be that the banks will find they are bust - what they owe to depositors and creditors exceeds the value of their shrivelled assets. UNLESS THEY CAN GET MORE CAPITAL, SAY THE DOOM-MONGERS, THEY WILL HAVE TO SHUT THEIR TELLERS' WINDOWS.

The Palace's blunt retort caused consternation in Downing Street, where a spokeswoman said: "You don't have anything on the record, do you?", before calling back to say that it was a matter for Lord Goldsmith and the Ministry of Justice. ROYAL INSIDERS ALSO ACCUSED LORD GOLDSMITH OF FALSELY IMPLYING THAT HIS REVIEW HAD THE FULL AUTHORITY OF THE ROYALS.

Lord Goldsmith, who left the Government last summer, argued that asking school leavers to pledge an oath of allegiance at passing-out ceremonies would "promote a sense of shared belonging" and "better integrate newcomers to our society". But he infuriated traditionalists by suggesting the HISTORIC OATH TO THE CROWN, as already taken by new British citizens, MIGHT BE REPLACED BY A PLEDGE OF COMMITMENT TO THE COUNTRY or a statement on the rights and responsibilities of citizens.

Critics condemned the oath AS BEING MORE APPROPRIATE FOR A REPUBLIC, such as France or America, than a monarchy. For centuries, members of both Houses of Parliament have been required to take an oath, swearing TO 'BEAR TRUE ALLEGIANCE' TO THE QUEEN AND HER SUCCESSORS. Oaths are also sworn by all new recruits to the British Army and the Royal Air Force, and have become a central part of citizenship ceremonies.

The current holder of the 658-year-old post, Lieutenant General Sir Michael Willcocks, is being forced to quit the job two years earlier than expected - and his successor will have only half his powers. The job will still include ceremonial responsibilities, but day-to-day running of the Lords' offices will be switched to a corporate-style "director general of facilities".

The decision has led to a behind-the-scenes battle - with claims it is revenge for Sir Michael's row with Tony Blair over the Queen Mother's funeral in 2002. Mr Blair made an official complaint after The Mail on Sunday revealed he tried to steal the limelight at the Queen Mother's lying-in-state. He was forced to climb down after Black Rod said the story was true.

A Conservative peer said: "LABOUR HAVE NO RESPECT FOR TRADITION AND WANT TO TURN THE LORDS INTO LITTLE MORE THAN A COUNTY COUNCIL." The post of Black Rod was created in 1350. He is responsible for security at the Lords and the State Opening of Parliament, when he bangs on the Commons door three times with his mace to summon MPs to hear the Queen's Speech.

The Fed meeting is expected to result in yet another cut in the target Fed Funds rate; a half-percentage point cut would take the rate to 2.50%, the lowest level since February 2005. The FOMC continues to take liquidity actions to deal with credit market deterioration, by reducing rates and providing new sources of funds to struggling depositary institutions and investment banks.

While the stock market jumped after the Federal Reserve said it would help primary dealers (investment banks), it gave back some of the gains one day later, and then reacted negatively on news of emergency actions to deal with liquidity issues at Bear Stearns. The focus shifted to liquidity since financial institutions are generally more vulnerable to liquidity pressures than credit pressures.

Those events lead directly to this coming Tuesday's meeting which, before Friday's emergency Federal Reserve action, had already been deemed critical.

While common throughout the Middle East and in Muslim communities, the new anti-Semitism is not confined to those populations, said the report, prepared by the office of the special envoy for monitoring anti-Semitism. For example, the report cited frequent requests to the United Nations to commission investigations of reports of alleged atrocities and other human rights violations by Israel.

Unremitting criticism of Israel is mounting, the report said, and Israeli policy is sometimes likened to the Nazis. At the same time, the report to Congress said, there is a failure to pay attention to regimes guilty of grave violations. This has the effect of reinforcing the notion that the Jewish state is one of the greatest sources of abuse of the rights of others "and thus, unintentionally or not, encourages anti-Semitism," the report said.

While Israel's policies and practices must be subject to criticism and scrutiny to the same degree as other countries', "those criticizing Israel have a responsibility to consider the effect their actions may have in promoting hatred of Jews," the report said.

The report singles out Iran's President Mahmoud Ahmadinejad as a Holocaust denier whose government practices official anti-Semitism against its Jewish minority, and the Syrian government as routinely demonizing Jews. In Belarus, state enterprises produce and distribute anti-Semitic material, and in Venezuela, President Hugo Chavez has publicly demonized Israel and used stereotypes about Jewish financial influence and control, the report said. Government media in Venezuela, Saudi Arabia and Egypt have become "vehicles for anti-Semitic discourse," the report said.

JP Morgan Chase will provide the money to Bear Stearns for 28 days with the Federal Reserve of New York's backing. JP Morgan is also trying to get long-term financing for the struggling bank. Bear Stearns' problems stem from the global credit crunch and the worry is that other lenders may also have major funding problems, analysts said. The bank is Wall Street's fifth largest investment bank, and has been at the centre of the US mortgage debt crisis. Recently, speculation had intensified that it was struggling to fund its daily business.

The bank's creditors have become progressively concerned about Bear's exposure to mortgages, said BBC business editor Robert Peston. "The rescue of Bear Stearns demonstrates that the worst of the global credit crunch is not yet behind us," he said. He says that if the bank had been allowed to collapse, it could have put the whole financial system at risk.

Speaking on A-Shams radio, Salah, the head of the northern branch of the Islamic Movement, said he would not appear for questioning because he is afraid he will be attacked by Jews in retaliation for the murder of eight young yeshiva students in Jerusalem last week by an Israeli Arab terrorist.

During his speech last year, Salah announced, "The time has come for an Arab-Muslim intifada for Jerusalem and the Al-Aksa Mosque."

Also found was a seal that bears an inscription in ancient Hebrew which reads: [belonging] to Netanyahu ben Yaush. Remains of a magnificent colonnaded street from the Late Roman period (2nd century CE) were uncovered that appears on the mosaic Madaba map and is referred to by the name - the Eastern Cardo. The level of the Eastern Cardo is paved with large heavy limestone pavers that were set directly on top of the layer that dates to the end of the First Temple period. Thus the Roman road "seals" beneath it the finds from the First Temple period and has protected them from being plundered in later periods.

This is actually the first time in the history of the archaeological research of Jerusalem that building remains from the First Temple period were exposed so close to the Temple Mount - on the eastern slopes of the Upper City. The walls of the buildings are preserved to a height of more than 2 meters.

Another impressive artifact that was found in the salvage excavations is a seal that was apparently inlaid in a ring. The scarab-like seal is elliptical and measures 1.1 cm x 1.4 cm. The surface of the seal is divided into three strips separated by a double line: in the upper strip is a chain decoration in which there are four pomegranates and in the two bottom strips is the name of the owner of the seal, engraved in ancient Hebrew script. Translated, it reads: [belonging] to Netanyahu ben Yaush.

In addition to the personal seal, a vast amount of pottery vessels was discovered, among them three jar handles that bear LMLK stamped impressions. An inscription written in ancient Hebrew script is preserved on one these impressions and it translates:[belonging] to the king of Hebron.

These finds, as well as the numerous fertility and animal figurines, are characteristic of the Kingdom of Judah in the latter part of the First Temple period - the end of the 8th century BCE to the destruction of the Temple in the year 586 BCE.

The call came this week during a meeting of a special commission on China created by Pope Benedict XVI. Among the participants at the meeting was the Hong Kong Cardinal, Joseph Zen, an outspoken champion of religious freedom who at times has drawn the ire of Beijing authorities. The Vatican said in a statement that participants focused on issues concerning the life of the Catholic Church in China. The pope, who has made improving relations with China a priority, is keen to restore diplomatic relations with Beijing.

Beijing broke ties with the Vatican in 1951 after the communists took power in China. Millions of Chinese belong to unofficial congregations that are loyal to the pope and risk harassment. The pope sent a letter to Catholics in China last year, praising the underground church but also urging reconciliation with the official church.

"In line with the indications expressed by the pope in his letter, the will for a respectful and constructive dialogue with the authorities was reiterated," during the meeting, the Vatican statement said. Catholic clergy in China have at times been jailed and worship is allowed only in state-backed churches, which appoint their own bishops in defiance of the Vatican.

They are allowed to claim a total of £22,000 for a range of items ranging from a £200 food processor and a £750 high-definition TV to £10,000 for a new kitchen and £6,000 for a bathroom. The secret list of 38 items MPs can claim back from the taxpayer for their second homes was revealed last night under the Freedom of Information Act after the authorities fought to keep it under wraps.

The "John Lewis" list is so called because it is based on prices at the upmarket department store, which specialises in top-of-the-range goods. It will heap further pressure on MPs who are already under attack for the long list of perks they have awarded themselves, including help with mortgage costs and travel expenses.

The revelation that MPs can claim for luxury entertainment systems caused fury last night. Former anti-sleaze MP Martin Bell said the payments were "abuses" and that public trust in politics would plunge to "below rock bottom". They can claim up to a maximum of £22,000 - and many do. Limits include £1,000 for a bed, £250 for a coffee table, £600 for a dining table, £500 for a dressing table and £550 for a fridge-freezer.

Carpets and wood flooring can be bought at £35 per square metre. Not all the items are essential. Comparing the list with the John Lewis website shows MPs may claim a free high-definition TV set, costing £749, a £249 home cinema system and a Kenwood classic food mixer at £199. Rugs can be bought for £300, which could include a luxury hand-knotted Pakistan Bokhara rug from John Lewis, described on the website as "soft and velvety". The list also reveals that dry cleaning for clothes and household items is permitted "within reasonable limits".

Mr Walker told the Information Tribunal last month that most costs associated with their second residence can be claimed back even if they are not exclusively work-related. They can also claim up to £400 a month for shopping without receipts.

Gold climbed as high as $1,000.45 an ounce yesterday as mounting credit-market losses spurred demand for bullion as a haven from the sagging dollar and equities. This is up 37 percent since the Federal Reserve began cutting borrowing costs in September, sending the dollar tumbling.

"Gold strength has been mainly driven by the weak dollar, strong crude and increasing fear of recession," Stephan Schlatter, executive director for metals markets in Asia at UBS AG, said from Singapore today by e-mail. "Assuming that the situation will not change over the next few weeks there is still a high probability that it will show continuing strength."

The dollar again hit record lows Friday and, after coming off 12-year lows, slipped below 100 yen for the second day in a row. The euro bought a record high of $1.5651 before settling back to $1.5558 in early trading. The euro was$1.5625 on Thursday.

The British pound slipped to $2.0273 from the $2.0292 it bought in New York late on Thursday. The dollar, which on Thursday fell below 100 yen for the first time since late 1995, fell as low as 99.85 yen Friday before recovering somewhat to 100.55 yen. Economic woes in the U.S. have fed expectations that the Federal Reserve will continue to lower interest rates. Lower interest rates can jump-start a nation's economy, but can also weigh on its currency as traders transfer funds to countries where they can earn higher returns.

The European Central Bank has taken a tough anti-inflation stance and has shown no inclination so far to cut rates for the 15-nation euro zone. On Friday, the EU reported a new inflation high of 3.3 percent in February, dousing almost any hope that central banks would budge.

The dollar dropped below 100 yen earlier today for the first time since 1995 and declined to a record low against the euro. Investors looking for higher returns have flocked to commodities. Oil surged 90 percent over the past year as the Standard & Poor's 500 Index dropped 4.4 percent.

"Energy trading continues to be dollar dominated," said John Kilduff, senior vice president of energy at MF Global Ltd. In New York. "The reverberations from the credit markets and U.S. economic policies are creating an inflation wave in hard assets and traditional inflation havens."

Gold traded above $1,000 an ounce for the first time in New York today on the sliding dollar. Silver, platinum and palladium also advanced. The U.S. currency fell against a basket of six major trading partners to the lowest since the index began in 1973. The Dollar Index traded on ICE Futures in New York declined as low as 71.795.

He's complained that churches can't be built in many Muslim countries. He warned of a mass exodus of his ancient Catholic flock from places like Beirut and Bethlehem. Now, the Pope has a martyred Iraqi bishop to lament. Chaldean Catholic Archbishop of Mosul, Paulos Faraj Rahho was kidnapped on Feb. 29. On Thursday, his body was recovered. Almost immediately, the Pontiff released a blunt statement, declaring: "the most resolute condemnation of an act of inhuman violence that offends the dignity of the human being."

Several Catholic priests and seminarians have been killed in previous attacks and kidnappings over the past three years in Iraq, but Rahho is the first bishop to perish after being caught up in that country's cycle of violence. The body of the bearded 65-year-old, who was known to be in poor health, was found after his abductors called Rahho's church to say that he'd died and been buried. His corpse was found in a shallow grave just outside Mosul. The cause of death was not immediately clear.

Still, there is little doubt about the religious motivation of last month's brazen abduction, in which Rahho's driver and two bodyguards were slain. Even if criminal elements were involved in the kidnapping - and ransoms were reportedly sought - the victim was clearly targeted for his prominent role in the Church.

Apart from furnishing concrete evidence of the changing of the guard in the global economy, it also demonstrates the economic value created by the commodity boom. The common thread running between these unrelated trends - the decline in the U.S. dollar.

The United States continues to dominate the ranks of the world's biggest companies, but to a much lesser degree than it did even a decade ago. It now accounts for nine of the Top 25, followed closely by Europe with eight. In 1998, the United States accounted for as many as 18 of the Top 25 companies, followed by Europe with five.

What does come as a surprise, however, is the number of corporate juggernauts spawned in recent years by the BRIC (Brazil, Russia, India, China) powerhouses. China has four companies in the global Top 25, while Brazil and Russia have one company apiece. So the BRIC group (excluding India, which has no representation on the list) collectively accounts for about a quarter of the world's Top 25, a remarkable feat considering that most of these titans are relatively new entrants to the global equity marketplace.

Ten years from now, the Top 25 ranking may look very different, and one of the factors driving this transformation will undoubtedly be the direction of the U.S. dollar. Currency moves can play a huge part in determining the global corporate hierarchy. Witness the case of Japan. In 1996, a year after the yen peaked at about 80 to the U.S. dollar, Japan had eight companies in the Top 25; by 1998, with the yen having tumbled 40 percent from its peak, only two Japanese companies remained. Ten years later, Toyota Motor is the sole representative from Japan, despite the yen having gained more than 20 percent over the past decade. In the battle to become the biggest, lost ground is exceedingly difficult to make up.