Liverpool look towards the new year knowing that glory is there for the taking.

They have left their mark on the best of the Premiership in an unforgettable week that has seen them not only secure a stunning win at Manchester United, but then return to Anfield to take Arsenal apart.

Manager Gerard Houllier, who has had to withstand criticism of his rotation policy and insistence that all his England strikers must forget about egos and accept they are players in a squad, could hardly have had a better Christmas present.

Arsenal were sent to their heaviest league defeat of the season - significantly with both Michael Owen and Robbie Fowler on the scoresheet.

The pair have been battling for a first team slot lately, but their goals set the seal on a dramatic victory that Houllier will claim vindicated his whole policy.

Owen's was his first league goal for three months, while Chelsea-target Fowler added his first Premiership strike since early November in a compelling display.

Houllier said: "That was a great Christmas present for the fans, and it doesn't get much better than beating United and Arsenal in a week.

"Not many sides put four past Arsenal, having beaten United and not conceded a goal in either game.

"It has been produced with a character, commitment and spirit that has been phenomenal."

Much has been said about Liverpool's youth and inconsistency but Houllier can now see substance, character and sheer will to win in his side.

Arsenal are an intimidating, physical side, and to beat them as convincingly as this, you have to win the battles before the war.

And this is where Liverpool were most impressive. They stood up to the hard, demanding challenges that Arsenal give any side, and emerged still capable of producing a cutting edge that tore the heart from Arsene Wenger's team.

At their heart were youngsters Steven Gerrard - who eventually limped from the fray with a knee injury - and Igor Biscan, who reduced Patrick Vieira to the role of also-ran. Not many teams do that.

And up front Emile Heskey frightened the life out of defenders of Martin Keown's quality, and did as much towards the victory as any of the goalscorers.

Wenger looked cold, angry and maybe even a little stunned at the end. He said: "I was not happy with the performance or the scoreline. When they went two ahead we were not able mentally to fight back."

That smacked of a manager who was surveying a broken side, as much in spirit as anything else.

They could not subdue Liverpool as they would have expected, and any chance of closing the gap on Manchester United was swept away by a team who must be looking towards 2001 with great anticipation.

To win the title now after so many error-strewn matches earlier in the campaign is probably beyond Liverpool but it will be to a trio of cup competitions that they will look.

The UEFA, Worthington and FA Cups must now be Houllier's objectives, and if they continue this level of improvement, anything is possible.

Houllier, while trying to play down the significance of the victory, couldn't help himself when he said: "We will grow stronger in the second half of the season, and I am just frustrated that we have lost so many points earlier in the season.

"I can't see Manchester United losing 10 points in the second half of the season, and I can't tell you how Arsene must be feeling. Probably as bad as I did when we lost at Highbury at the beginning of the season."

No-one can predict a Liverpool title win with six defeats already this season, but the way this young side are starting to fly, Champions League qualification is definitely on.

Boys are becoming men. The goals started to flow a early as the 10th minute when Gerrard lashed home from the edge of the box after Heskey had nodded down Markus Babbel's long throw.

Arsenal, with Thierry Henry swift and mobile, created chances and asked questions of Liverpool's defence. This time they were answered emphatically.

Nobody wilted. Not the ocassionally worrying Sander Westerveld, not Sami Hyypia, and certainly not youngsters like Jamie Carragher, Gerrard, Biscan and Danny Murphy.

Arsenal upped the tempo in demanding spells each side of half-time. It was tense and not short of conflict and it is fair to say that Liverpool were hanging on when they broke to grab a crushing second.

Wenger said: "At two down we never looked like getting back into the game. I felt until then we were unlucky, having created the better chances, but our problems are there again.

"We don't score enough, we have barely scored twice in away games this season, and it has been like that from the start."

Liverpool are not finding goalscoring difficult. Their second came when Heskey turned and outfought Keown down the left before lashing in a shot that Alex Manninger pushed out only for Owen to force his way past Silvinho to stab the ball home.

Vladimir Smicer's clever invention from midfield had just been introduced from the substitutes' bench, and his neat through ball after 71 minutes allowed Nick Barmby to time his run to perfection before lifting the third over an exposed Manninger.

Next into the fray was Fowler, who has had to accept a few facts of life at Anfield.

And he made his mark when in the last minute he ran onto a Barmby pass to guide the fourth past Manninger.

Arsenal were broken long before that. As for Liverpool, if they do not build on this week and begin to add consistency to the bubbling skills, there will be more than a stewards inquiry at Anfield.

Teams:

Liverpool: Westerveld, Babbel, Hyypia, Henchoz, Carragher, Barmby, Biscan, Gerrard (McAllister 76), Murphy (Smicer 62), Heskey, Owen (Fowler 80).

Subs Not Used: Arphexad, Vignal.

Booked: Carragher, Babbel.

Goals: Gerrard 11, Owen 62, Barmby 71, Fowler 90.

Arsenal: Manninger, Dixon, Keown, Luzhny (Pires 45), Silvinho, Parlour, Vieira, Grimandi, Ljungberg (Wiltord 67), Bergkamp (Kanu 73), Henry.

Subs Not Used: Stepanovs, Lukic.

Att: 44,144

Ref: P Durkin (Dorset).