Body in burned cabin ID'd as Christopher Dorner

(CBS News) BIG BEAR LAKE, Calif. - Remains of a man who was in a burned California cabin on Tuesday have been positively identified as belonging to that of Christopher Dorner, the former LAPD officer who was suspected of killing four people and was the subject of an intense manhunt, officials confirmed.

The San Bernardino County Coroner's office said the positive identification was made through dental records.

The final hours of the manhunt for Christopher Dorner began when Jim and Karen Reynolds opened the door of one of their rental condos.

Police fill in the blanks on Dorner's last day
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"We had come into the living room and he opened the door and came out at us," said Karen.

"He had the gun drawn," added Jim.

A man believed to be Dorner tied them up.

"He talked to us, trying to calm us down," said Karen, "and saying very frequently he would not kill us."

He then took their car. "We listened for probably a minute or two, wanted to make sure he was gone," said Jim, "sounded quiet. And then we started struggling trying to get loose."

They called 911, triggering a chain of events that ended with Tuesday's shootout in which two sheriffs deputies were shot. Thirty-five-year-old Jeremiah MacKay died from his wounds.

The firefight that we witnessed was intense and we were forced to take cover - however, we left his cell phone on. Early in the standoff you could hear officers suggesting burning the suspect out.

One officer can be heard saying, "Burn that ------ out , burn it down, ------ burn this mother-----"

Four more hours would pass before police used high-powered tear gas. The canisters are known to be a fire hazard.

"We did not intentionally burn down that cabin to get Mr. Dorner out," San Bernandino Sheriff John McMahon had said.

Dorner's body was found in the ashes. It's unclear if the cause of death was from the fire -- or a single shot we heard moments after the cabin ignited.

Meanwhile, investigators looking through a trash bin in Irvine, California, where the first two victims were killed, recovered Dorner's badge, a police uniform, and a high-capacity ammo magazine.

CBS News asked San Bernardino County Sheriff's Department about the audio we recorded, and they declined to comment.

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Dorner Confirmed Dead in Autopsy on Cabin Remains

Christopher Dorner, the ex-Los Angeles police officer who declared himself on a killing spree against his former law enforcement colleagues, is dead.

Authorities this evening confirmed that remains found after a fiery standoff at a California mountain cabin Tuesday were, in fact, Dorner's.

"The charred human remains located in the burned out cabin in Seven Oaks have been positively identified to be that of Christopher Dorner," the San Bernardino County Sheriff-Coroner's Office said in a written statement. "During the autopsy, positive identification was made through dental examination."

FULL COVERAGE: Christopher Dorner Manhunt

PHOTOS: Former LAPD Officer Suspected in Shootings

In a 6,000-word "manifesto," Dorner outlined his anger at the Los Angeles Police Department for firing him, and made threats against individuals he believed were responsible for ending his career with the police force five years ago. Dorner was fired after filing what the LAPD determined to be a false report accusing other cops of brutality.

Dorner is suspected of killing four people, including Monica Quan and her fiance, who were found shot to death Feb. 3. Quan was the daughter of former LAPD Capt. Randal Quan, who was mentioned as a target of Dorner's fury in the manifesto.

Christopher Dorner Hostages: 'He Just Wanted to Clear His Name' Watch Video

Christopher Dorner Believed Dead After Shootout With Police Watch Video

Christopher Dorner Believed Dead After Shootout with Police Watch Video

Dorner is also suspected in the shooting death of Riverside, Calif., Police Officer Michael Crain, whose funeral was Wednesday.

San Bernardino Sheriff's Deputy Jeremiah MacKay, 35, a 15-year veteran and the father of two children, was killed in Tuesday's shootout at the cabin.

A second San Bernardino County sheriff's officer had to undergo multiple surgeries after he was wounded in the cabin shootout, and other officers also were wounded in earlier alleged encounters with Dorner.

After Crain's death, police tracked Dorner to the Big Bear Lake area of Southern California, where his burning truck was found in the mountains late last week.

A couple with a cabin in the area were some of the last people to see Dorner before his final encounter with police. Their 911 call to police triggered a chase that concluded with the fiery standoff at the nearby cabin.

The couple, Karen and Jim Reynolds, said at a news conference Wednesday that their ordeal lasted a few minutes but seemed like hours.

The Reynolds believe Dorner, 33, was holed up starting Friday in their unoccupied cabin in Big Bear, Calif., only steps from where police had set up a command center.

"He said four or five times that he didn't have a problem with us, he just wanted to clear his name," Jim Reynolds said. "He said, 'I don't have a problem with you, so I'm not going to hurt you.'"

Dorner tied their arms and put pillowcases over their heads before fleeing in their purple Nissan, the couple said.

Before he fled, the couple said Dorner told them that he had been watching them before he took over their cabin. Dorner told the couple he could tell they were "hard working, good people."

"He had been watching us and saw me shoveling the snow Friday," Jim Reynolds said.

They say they may have left the cabin door unlocked and that could have been the reason Dorner was able to enter undetected.

Dorner remained "calm and meticulous" throughout the harrowing ordeal, the couple said.

The Reynolds walked into their cabin around noon Tuesday when they came face-to-face with Dorner. There was no question in their minds who he was -- the suspected cop killer at the center of one of the largest manhunts in recent memory.

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Obama speech 'relied on amnesia'

STORY HIGHLIGHTS

• Matt Welch: State of the Union featured content-free calls to action for action's sake


• He says governed might want to know what they've gotten in return for ballooning debt


• Didn't we try repairing infrastructure with the stimulus package? he asks


• Welch: Rand Paul spoke to those who think government should get out of way

Editor's note: Matt Welch is editor in chief of Reason and co-author of "The Declaration of Independents: How Libertarian Politics Can Fix What's Wrong With America" (Public Affairs).

(CNN) -- The two most memorable lines of President Barack Obama's fourth State of the Union address were the ad-libbed: "Get it done" (which doesn't appear in the remarks as prepared), and the emotional "They deserve a vote," concerning victims of gun violence.

As exasperated appeals for an obstructionist Congress to get off its duff, the exhortations provided emotional catnip for Democrats. For the rest of us, however, they were sobering reminders of what governing liberalism has deteriorated into: content-free calls to take action for action's sake.

Consumers of national governance are within their rights to ask just what we've gotten in return for ballooning the cost of the stuff since 2000. The answer may lie in not just what the president said, but what he has assumed we've already forgotten.

Matt Welch

"Let's cut in half the energy wasted by our homes and businesses over the next 20 years," said the president, who promised a "Recovery Through Retrofit" three years ago. "The American people deserve a tax code that ... lowers tax rates for businesses and manufacturers that create jobs right here in America," said the man who before he took office vowed to, uh, give "tax breaks to companies that are investing here in the United States."

That "aging infrastructure badly in need of repair"? Well, what happened to the $50 billion from the stimulus package dedicated to precisely that task, or the $50 billion plan 18 months later? Making college "more affordable"? That has been the motivation for continuous ratcheting of government involvement in higher education, which has -- surprise! -- coincided with a several-decade increase in tuition costs and student loan debt.

Greene: In 2013, democracy talks back

Do-something politics works when Americans have amnesia, or are reacting to headline-making tragedies, or when they just want free stuff. But this irresistible force is butting up against the immovable object of a have-nothing U.S. Treasury. Debt service costs will soon overtake defense spending, and baby boomer entitlements are about to transform the federal government into a check-writing program for senior citizens.

Americans know by now that Obama can't possibly believe his own promises that his policies won't "increase our deficit by a single dime," not only because of his poor track record with that particular vow, but because he spends the rest of his time talking about all the various things the government needs to "invest" to create "broad-based growth." It's a conflict at the basic level of vision with those of us who think prosperity is mostly a private-sector affair that is on balance imperiled, not improved, by the exertions of a deficit-spending government.

Opinion: Obama dares Congress to get the job done

Thankfully, and quite unlike during the 2012 presidential campaign, the competing vision was voiced Tuesday night. Not necessarily by a dehydrated but game Sen. Marco Rubio, R-Florida, who delivered the Republican response to the State of the Union address, but by Sen. Rand Paul, R-Kentucky, who did the honors online for the tea party.

"The path we are on is not sustainable," Paul said, directly. "All that we are, all that we wish to be, is now threatened by the notion that you can have something for nothing, that you can have your cake and eat it, too, that you can spend a trillion dollars every year that you don't have."

Paul dinged Republicans as well as Democrats, targeted military spending as well as entitlements, and spent a good 30 seconds giving a more full-throated defense of wartime civil liberties than the allegedly anti-war candidate Obama ever did.

Most importantly, he laid out a truly alternative vision that speaks directly to the growing number of Americans who feel like the federal government has failed as the engine of economic growth, and needs urgently to take a back seat before it does more harm.

Rothkopf: This time, a president in full

"What America needs," Paul said, "is not Robin Hood, but Adam Smith." As Obamanomics continues underperforming through a second term, it will be fascinating to see whether Ron Paul's kid can get more people to agree.

Follow us on Twitter: @CNNOpinion.

Join us at Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Matt Welch.

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Zuckerberg owns nearly a third of Facebook: US regulators

SAN FRANCISCO: Mark Zuckerberg's stake in Facebook has climbed to nearly 30 percent since the leading social network made its dismal stock market debut, according to a filing Wednesday with US regulators.

Zuckerberg owns 632.65 million Facebook shares as compared with the slightly more than 500 million he held in September when the stock's sagging price prompted a promise he would not sell any for at least a year.

Zuckerberg sold about 30 million shares when the Menlo Park, California-based social network made its stock market debut in May at an opening price of $38.

Shares slid to a low of $17.55 in September but have regained ground, trading at $28.04 at the close of trading on the Nasdaq exchange on Wednesday.

Securities and Exchange Commission filings show Zuckerberg has been building his stake Facebook, the potential of which he contends is underestimated by the market.

One SEC filing showed that Zuckerberg acquired 18 million Facebook shares in mid-December at a price of zero, indicating they were tied to his compensation as chief of the social network.

-AFP/gn

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Body is thought to be Dorner, but guards remain in place

STORY HIGHLIGHTS

• NEW: Radio traffic describes use of gas canisters at cabins


• Slain officer's widow thanks mourners: "A lot of people loved Mike"


• Villaraigosa says police have a "reasonable belief" that Dorner died in a mountain standoff


• Authorities have not conclusively identified the body found near Big Bear Lake

Follow the story here and at CNN affiliates KCBS/KCAL, KABC and KTLA. Anderson Cooper 360º devotes the entire hour to the frenzied manhunt, the final shootout, and the people allegedly killed by an ex-LA cop. Watch "9 Days of Terror: The Hunt for Christopher Dorner" Wednesday at 8 p.m. ET on CNN.

Riverside, California (CNN) -- A "sigh of relief." A widow's restrained sobs. The lingering fear of the targets, waiting to hear whether their pursuer had truly been run to ground.

A day after a man suspected to be renegade ex-cop Christopher Dorner died in a blazing mountain cabin, police from around the Los Angeles area and beyond gathered to bury one of their own Wednesday. A squad of bagpipers led Michael Crain's flag-draped casket through a cordon of blue uniforms into a church in Riverside, the Los Angeles suburb where he served 11 years on the force.

The mourners who packed the church included California Gov. Jerry Brown, his Highway Patrol chief and law enforcement from an alphabet soup of agencies around the region.

"I knew that communities would reach out, and I knew a lot of people loved Mike," Regina Crain, the slain officer's widow, told them as she choked back tears. "And I knew that I would have support no matter what. But I really did not realize the sheer scale of this, and how many people are touched by his life. It gives me really great comfort to see that, and I want to thank you all."

Investigators say Crain was shot and killed by Dorner, a fired Los Angeles cop who launched a vendetta against his old department last week. They blame the 33-year-old former Navy officer for the deaths of Crain and a still-unnamed San Bernardino County sheriff's deputy killed in Tuesday's fiery standoff. He is also accused of killing the daughter of a former LAPD captain and her fiance and of shooting three other cops, including Crain's partner. The violence spree began February 3.

Los Angeles Mayor Antonio Villaraigosa said authorities have a "reasonable belief" that the body found in a burned-out cabin in the San Bernardino Mountains late Tuesday is Dorner's. But while the SWAT teams that prowled the city in search of the former Navy officer have stood down, the officers detailed to guard his potential victims remain in place.

"I think we all are breathing a sigh of relief," Villaraigosa said Wednesday. "We do believe that it is the body of Christopher Dorner, but we don't know for a certainty. And until we do, those police officers who were targeted will continue to be protected. That's the least we could do."

'A very trying time' for the LAPD

Authorities say Dorner launched a guerrilla war against the Los Angeles Police Department over what he considered his unfair dismissal in 2009.

It wasn't clear when a formal identification could be made of the charred remains found in the cabin near Big Bear Lake, about 100 miles east of Los Angeles, after a Tuesday shootout with police. Until then, "a lot of apprehension" remains in the ranks of the LAPD, Lt. Andy Neiman said.

"It's been a very trying time over the last couple of weeks for all of those involved and all those families, friends and everybody that has been touched by this incident," he said.

Timeline in manhunt

Meanwhile, questions swirled Wednesday over how the shootout, standoff and fire that led to Dorner's presumed death unfolded.

Investigators began scouring the mountains on Thursday, when investigators found Dorner's scorched pickup. Police, sheriff's deputies and federal agents swarmed into the area, working through a weekend blizzard, but the trail was cold for days.

On Sunday, the San Bernardino County Sheriff's Department said it had scaled back the search. Villaraigosa announced a $1 million reward for information leading to Dorner's arrest and conviction, spurring hundreds of tips.

Then early Tuesday afternoon, California Fish and Wildlife wardens said they spotted Dorner driving a purple Nissan down icy roads near Big Bear Lake. He was driving very close to some school buses, as if using them as cover, said Lt. Patrick Foy. No children were on the buses, Foy said.

'Here comes this guy with a big gun'

The wardens, driving in two different vehicles, chased Dorner, and a gun battle ensued. One of the warden's cars was hit, and Dorner crashed his car and ran, according to authorities. He then carjacked a pickup truck.

Rick Heltebrake, a camp ranger, said he was driving when he saw the crashed purple vehicle -- and then something terrifying.

How authorities identify a burned body

"Here comes this guy with a big gun, and I knew who it was right away," Heltebrake told CNN affiliate KTLA. "He just came out of the snow at me with his gun at my head. He said, 'I don't want to hurt you. Just get out of the car and start walking.' "

Heltebrake said the man let him take his dog and walk away with his hands up.

"Not more than 10 seconds later, I heard a loud round of gunfire," Heltebrake said. "Ten to 20 rounds, maybe. I found out later what that was all about."

Dorner fled to a nearby cabin and got into another shootout, this time with San Bernardino County deputies. He killed one and wounded another, San Bernardino County Sheriff John McMahon told reporters Tuesday evening.

The wounded deputy was in surgery at that time but "should be fine," McMahon said.

Some of the firefight between police and the suspect was captured live on the telephone of a reporter for CNN affiliates KCBS and KCAL. Police in Los Angeles listened live over police scanners broadcast on the Internet, Neiman said.

"It was horrifying to listen to that firefight," he said. "To hear those words, 'officer down,' is the most gut-wrenching experience you can have as a police officer, because you know what that means."

'Maintain your discipline'

A law enforcement source told CNN the cabin caught fire when police tossed smoke devices inside. The cabin was fully ablaze within minutes and burned for hours as authorities waited at a distance.

Devices such as "flash-bang" grenades and tear gas canisters designed to disorient and disable suspects can cause fires, CNN contributor Tom Fuentes, a former FBI assistant director, said Wednesday. But it wasn't clear exactly how the fire started.

Audio from a Los Angeles television station captured the sound of someone early in the standoff shouting, "Burn it down ... burn that goddamn house down. Burn it down." It's not clear who used those words.

But the order to use smoke canisters -- "burners" -- didn't come for another two hours, according to San Bernardino County sheriff's radio traffic.

"Seven burners deployed, and we have a fire," one officer reported at 4:16 p.m. (7:16 p.m. ET).

Five minutes later, a single gunshot was reported from inside the house. A senior officer ordered units around the cabin, "Stand by. Maintain your discipline." About a minute after that, officers reported ammunition exploding inside.

After initially saying that no body had been found, sheriff's investigators finally confirmed overnight that they had found charred human remains in the ashes.

Dorner cheered in some quarters

Dorner had vowed to kill police officers to avenge what he called an unfair termination. He was fired after accusing his training officer of kicking a suspect during a July 2007 arrest -- a complaint the LAPD determined was unfounded.

Talk Back: Does the Dorner case teach us anything about guns?

The department accused him of lying to superiors and to internal affairs investigators and forced him out in January 2009. Dorner challenged his dismissal in court but was unsuccessful.

Dorner was first named a suspect in two shooting deaths on February 3: Monica Quan, the daughter of his police union representative, and her fiance, Keith Lawrence.

Police say he killed Crain and wounded Crain's partner in an ambush on their patrol car Thursday. They say he also wounded an LAPD officer who chased him in the suburban city of Corona, California.

In a manifesto explaining the reasons behind his rampage, Dorner said nothing had changed in the LAPD since its scandals of the 1990s, the Rodney King beating and the Rampart police corruption case. Those allegations have struck a chord with some who say that despite being named as a suspect in four killings, Dorner was seeking justice.

Shadowed by that history, LAPD Chief Charlie Beck announced Saturday that the department would re-examine its proceedings against Dorner. The review is "not to appease a murderer," but "to reassure the public that their police department is transparent and fair in all things we do," he said.

During the manhunt, LAPD officers guarding one of the people named in Dorner's manifesto opened fire on a truck in the Los Angeles suburb of Torrance last Thursday, wounding two women inside. In a television interview over the weekend, Beck called that a "tragic, horrific incident."

CNN's Miguel Marquez, Paul Vercammen, Stan Wilson, Casey Wian, Kathleen Johnston, Alan Duke, Lateef Mungin, Chelsea J. Carter, Michael Martinez, Holly Yan and Michael Pearson contributed to this report.

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American, US Airways set to clinch merger

(MoneyWatch) American Airlines and US Airways (LCC) are set to announce a merger that would create the world's biggest carrier.

Under the deal, which is expected to be unveiled Thursday if the timeline isn't moved up sooner and there are no last-minute snags, the combined airline would keep the "American" name. It would still require federal approval, although that is virtually ensured. US Air CEO Doug Parker is expected to lead the combined company.

A merger of US Air and American would surpass a 2010 tie-up between United Airlines (UAL) and Continental and a 2008 deal joining Delta (DAL) and Northwest. The merged American would be the largest carrier and sport a market valuation of roughly $10 billion.

Although airlines tout such consolidation as a way to cut costs and expand service amid intense competition, whether industry mergers raise fares is an open question. Many analysts say yes because reduced competition in any business often results in higher prices. One study found that ticket prices went up more than 20 percent between Detroit and Atlanta after Delta bought Northwest. Fares went up more than 30 percent on routes between Chicago and Houston, as well as Newark to San Francisco, after the United-Continental deal.

In seeking to run more efficiently, merging airlines also often cut capacity and eliminate routes. 

Play Video

American close to merger with U.S. Airways

Other analysts are more optimistic about the potential benefits to travelers. They say the three largest U.S. airlines still must compete with discount carriers such as Southwest (LUV), which has flourished for years by offering low-cost flights and no-frills service.

The consolidation trend is largely blamed on the price of fuel. Oil now costs so much more per barrel than it did 10 years ago that one analyst says the margin of profit on many flights has shrunk to the value of a single seat. That means an airline can lose money if it flies with one single empty middle seat. The days of elbow room are over.

American Airlines has been operating under court supervision since declaring bankruptcy in November 2011.

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Ship Stranded: Love Boat to Horror Honeymoon

A Texas couple's fantasy wedding quickly turned into a nightmare honeymoon when the fire-damaged Carnival Cruise ship carrying them became stranded in the Gulf of Mexico.

Rob Mowlam, 37, and Stephanie Stevenson, 27, of Nederland, Texas, got married on the Carnival Triumph on Saturday. The four-day cruise was meant to be back to shore on Monday, but was left disabled by an engine fire on Sunday.

The ship is being slowly towed to shore and is expected to dock in Mobile, Ala., on Thursday if weather permits. The vessel is without air conditioning, many working toilets and some restaurant service. Passengers, many who are sleeping in tents on deck, have told ABC News the smell on the ship is foul.

That is the honeymoon setting for Mowlam and Stevenson.

"[Rob Mowlam] had been with his girlfriend, or fiance, for a long period of time and they just took the next step," Mowlam's brother James Mowlam III told ABCNews.com. "The captain is the king of the world when they're on the boat and he hitched them up."

James Mowlam said he was shocked when he heard about the stranded boat and the increasingly dire conditions on the ship.

"It is an atrocious scene to be subjected to," he said.

Mowlam said he has not been able to communicate with his brother, but that his father has had sporadic communication with him.

"It would be my guess that this would probably not be on anyone's great list of memorable wedding experiences," Mowlam said with a laugh. "Although, my mom told him that she was hoping they had a memorable wedding and I think this would classify as a memorable wedding experience."

Lt. Cmdr. Paul McConnell/U.S. Coast Guard/AP Photo

Carnival Cruise Ship Making Its Way to Port Watch Video

Carnival Cruise Ship Stranded for Third Day Watch Video

Carnival Cruise Ship Stranded off Yucatan Peninsula Watch Video

The bride's brother, Justin Davis, told ABCNews.com that his sister works for a doctor's office and the cruise was a gift from the doctor to the staff.

Davis has not been able to speak to Stevenson but said that her two young sons are being cared for by her mother. He said his sister is tough and he guesses she's probably not scared.

"She might be a little aggravated at the situation, but I'd say she's [probably] handling it really well," he said.

Others on the ship do not seem to be handling the situation so well.

Elderly and disabled passengers aboard the ship are struggling to cope with the worsening conditions, according to at least one passenger.

"Elderly and handicap are struggling, the smell is gross," passenger Ann Barlow text-messaged ABC News overnight. "Our room is leaking sewage."

The head of Carnival Cruise Lines said the British-U.S.-owned company was working hard to ensure the thousands of passengers stranded on the disabled ship were as comfortable as possible while the vessel was being towed to a port in Alabama.

"I need to apologize to our guests and to our families that have been affected by a very difficult situation," Carnival Cruise Lines president and CEO Gerry Cahill said at a news conference Tuesday evening.

It was the first time since a fire erupted in Triumph's engine room Sunday, knocking out its four engines, that a company representative had spoken publicly. The Triumph, with roughly 4,200 people on board, was left bobbing like a 100,000-ton cork for more than 24 hours. Giant sea-faring tugboats then hooked up to the ship and began towing the nearly 900-foot-long ship to land.

Carnival spokeswoman Joyce Oliva told The Associated Press Tuesday that a passenger with a pre-existing medical condition was taken off the ship as a precaution. Everyone else will likely have to weather conditions such as scarce running water, no air conditioning and long lines for food.

Back on land, passenger Barlow's 11-year-old twins told ABC News Tuesday they are worried as more passengers continue to talk about living with limited power and sanitation.

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Was euro ever 'about to collapse'?

By Ramy Inocencio, for CNN

February 12, 2013 -- Updated 0948 GMT (1748 HKT)

STORY HIGHLIGHTS

• Former European Central Bank chief says euro was never going to collapse


• In 2012, critics predicted at least partial breakup of 17-member eurozone


• Euro plunged to 25-month low against U.S. dollar in July 2012


• Currency war fears prevail in run-up to G20 finance ministers meeting this week

Hong Kong (CNN) -- Less than six months ago, eurozone watchers had been predicting the breakup of the 17-member bloc of nations as the euro plunged to a 25-month low against the U.S. dollar last July.

Even as recently as November, Warren Buffett, the famed CEO of Berkshire Hathaway, said of the eurozone's future that "it's hard to tell exactly how it comes out."

But since then, the euro has appreciated nearly 11% as its member countries battled to contain sovereign debt crises, rising unemployment and social unrest. The euro now stands at a 13-month high against the greenback.

And flying in the face of last year's critics, former European Central Bank chief Jean-Claude Trichet told CNN's Nina dos Santos that the euro "was never about to collapse" and that its viability as a currency is solid.

"The euro as a currency has never been put in question," asserted Trichet, while at the same time admitting the euro area's financial stability and credit worthiness had been tested.

As for the euro, he said it "is certainly reliable and credible."

Yet, the euro's gains over the past seven months is a mixed blessing. Arguments have long-existed for and against a stronger currency. Appreciation means investors are more confident in the euro but eurozone exports become more expensive when sold overseas; devaluation makes the bloc's exports more competitive globally, which many eurozone officials would prefer.

But if the world's major economies devalued their currencies to make exports more competitive and to spur their economies to growth again, it would be chaos, says Trichet.

"If the reasoning is the same in all constituencies you have nothing but...a 'beggar-thy-neighbor' policy which is a recipe for catastrophe."

That catastrophe could take the form of an all-out currency war. And this week, the world's leading banks called on the G20 group of richest nations to avoid such an outcome.

"We believe major central banks should focus on enhancing their cooperation...to guide market expectations and thus help avoid a disorderly interest rate adjustment process and undue exchange rate volatility," the Institute of International Finance wrote in a letter to Russian Finance Minister Anton Siluanov, who is chairing the G20 finance minister's meeting later this week.

But with the eurozone in recession for the second time in four years, the desire to devalue the euro may be strong. The European Central Bank in December cut its 2013 growth forecast, with a best-case growth rate scenario of only 0.3%.

"It is no time for complacency," warned Trichet who added that the central banks of the United States, Japan and Europe as well as their private sectors should get their "house(s) in order."

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17 gunmen dead in Thai military base attack

 

BANGKOK, Thailand: Scores of heavily-armed gunmen stormed a military base in unrest-plagued southern Thailand, an army spokesman said on Wednesday, in a major assault that left at least 17 militants dead.

"Some 100 fully armed militants stormed the base, where there were 60 marines," Colonel Pramote Promin, southern army spokesman, told AFP.

He said the attack, one of the most ambitious in several years of violence in Thailand's three southernmost provinces, had left at least 17 assailants dead. No military casualties were reported.

- AFP/de

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Hear suspect's gunfight with cops

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