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Message: More QE for the Euro
I believe what's generally going on with the pressure on gold and the shares is simple: The public is getting snowed on the seriousness of the financial meltdown and all is being done to camouflage it. What's sickening is that banks and hedge funds have inside information as a result of their invites to the Plunge Protection working group meetings in knowing their wishes to handle gold and the related companies. It is strongly believed that crushing the shares, to some degree, influences sentiment for gold.
This whole thing is a political play at our expense in an attempt to save a little face and maintain power. How would anyone expect regulators to act contrary to the boss's orders? Why would China complain about this manipulation when they are a regular buyer exchanging their unwanted dollars for the Real McCoy at cheaper and cheaper prices? The unfortunate thing for us is that we are all caught-up in their fly trap for the moment.
ESM Will Supply Whatever Money Is Needed In Euroland
April 24, 2012, at 10:58 am
by Jim Sinclair in the category General Editorial |
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by Jim Sinclair in the category General Editorial |
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My Dear Extended Family,
The European Stabilization Mechanism Treaty due to pass in July this year will take care of whatever money is required by Spain or any other Euroland nations for effective bailout. It starts with $700 billion in capitalization and has an open call for additional capital infusion with no limit placed on these calls and no further agreements required.
New additional capitalization called on by this treaty is mandatory, not elective and therefore will go to infinity.
The member nations have 7 days to pay up when ordered to by the management of the EMS who are protected against any form of attack or litigation to legislation. It will be backed by the US Fed via swaps while the US publicly denies it is adding any capital to the IMF or this new entity, ESM.
It is the mechanism for QE to infinity in Europe.
QE to infinity, properly understood, is debt monetization on steroids. Denials will be legion, but this debt monetization on steroids will not and cannot be avoided.
The advent of the ESM Treaty establishing the European Stabilization Mechanism is economically Earth shaking and recognized by almost no one out there. It cannot be otherwise, it cannot be avoided. It can de denied but it will occur.
Respectfully,
Jim
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