The debt bomb ticks away.

"Consumer debt has more than doubled in the past 10 years to record levels, making it hard for many families to cope," reported CBS News on January 6. "Consumer debt hit a record $1.98 trillion in October 2003, according to the most recent figures from the Federal Reserve. That debt--which includes credit cards and car loans, but not mortgages--translates to some $18,700 per U.S. household."

During the first half of last year, the nation's savings rate dropped to just 2 percent, meaning that "many people lack the means to deal with financial emergencies, much less their eventual retirement." In addition, for the poorest one-fifth of the population, the percentage of income devoted to paying off debt increased from 14.9 percent to 17.7 percent during the same period.

Meanwhile, the euro continues to post new highs against the dollar. On January 6th, noted COMTEX wire service, "The euro pushed to a new high against the dollar ... rising above US$1.27 for the first time in a continuing rally paced by concerns about the U.S. budget and trade deficits." The weakness of the dollar reflects, in large measure, the Federal Reserve's determination to keep interest rates low as a means of encouraging the same consumer profligacy that has primed the household debt bomb.