Hey IDC Holders
A significant event positive occurred less than 1 hour ago!
The German Constitutional Court approved the ESM Bailout Fund and approved the ECB Bond Buying Program via money printing!
The combination of the ESM, coupled with IMF Backstop where China has already stated they will inject Billions of Dollars is the first step towards a long term solution for the European Union!
The significant event for us Gold exposed investors is the approval for the ECB to print money and buy Italian and Spanish and other nation Bonds on the Secondary market to ensure their yields remain low! Exactly what the US Fed has been doing over the last 4 years, the Bank of England for the UK govt, the Japanese Central Bank for the Japanese Govt!
When both of these economic tools are used together, they are very very powerful! Especially the ECB's power to print money and buy bonds!
All this money printing will significantly lift the price of gold! This is a certainty!
The Central Banks will continue to hoard as much gold bullion to shore up their financial systems while they print money to keep govt bond yields low!
Over the next 24-48 hours we will also hear from the US FOMC whether they announce another Round of QE or Money Printing. If it isnt announced this week it will definitely occur by mid October!
Expect the price of gold to break $2000/Oz over the coming months with all this money printing!
All these macro economic events are occurring at exactly the right time for IndoChine Mining and our Mt Kare project since the value of the gold and silver are significantly higher than they have ever been in history!
As Mr Promnitz' team continues to explore, building the JORC Resource, finding new gold and silver discoveries, complete the PFS, BFS, Mining Leases, continue to work closely with the landowners and locals and "Awakening the Sleeping Giant", we can expect to see a significant rerating for our magnificent company!
We have been invested for a while now, all we need to do is let the market forces do their job as each milestone is achieved.
German court approves bailout fund
Date
September 12, 2012 - 6:27PM
Germany’s top constitutional court has cleared the way for the permanent eurozone rescue fund, rejecting bids to halt German ratification of the 500 billion euro ($630 billion) backstop, while imposing some conditions on its use.
The Federal Constitutional Court in Karlsruhe today dismissed motions filed by groups including a conservative lawmaker and an opposition political party that sought to block the fund, known as the European Stability Mechanism (ESM), and a deficit-control treaty (fiscal pact) championed by Chancellor Angela Merkel.
The court stipulated that a cap of about 190 billion euros be set on German liabilities before ESM ratification, unless parliament decides to back extra funds.
At present, the ESM has 700 billion euros of firepower at its disposal. That would not be enough to fund a full bailout of both Spain and Italy, for example.
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‘‘The review has concluded that the laws that were challenged, with high probability, do not violate the constitution,’’ chief justice Andreas Vosskuhle told the court in comments broadcast live. ‘‘Hence the motions for a temporary injunction were to be rejected.’’
‘‘Some uncertainties’’ about the limit on Germany’s contribution to the ESM and the scope of the German parliament’s say over the fund also flowed into the ruling, he said.
The judges also said that Germany must state when ratifying that it won’t be felt bound by the treaty unless these reservations are efficiently met.
The legal challenge - the biggest-ever constitutional challenge in Germany’s post-war history - to the planned rescue fund highlights bailout fatigue in Europe’s largest economy and delayed efforts by Ms Merkel and other euro-area policy makers to stem the region’s debt crisis.
In the neighbouring Netherlands, Prime Minister Mark Rutte, a Merkel ally, is seeking re-election today.
Relief in markets
Approval of the ESM is a vital part of a European Central Bank plan to defuse the eurozone debt crisis by buying struggling peripheral countries' bonds in the secondary market.
The court's ruling had been expected, but there was still relief in financial markets.
European shares, the euro and the Australian dollar all rose on the ruling. The dollar hit the day's high of $US1.0500, from $US1.0475, the euro hit a new four-month high of $US1.2907, while European stocks extended gains.
"The market was expecting it to be ratified but with some conditionality, which seems to be the case. The conditionally that I've seen so far doesn't come as a great surprise ... It hasn't shocked the market in a negative sense and therefore it allows the market to move forward," Kevin Lilley, European equities fund manager at Old Mutual Asset Management, said.
European equities have rallied strongly since early June, with the eurozone's blue chip Euro STOXX 50 index surging about 25 per cent, lifted by expectations of central bank action to revive economic growth and tackle the eurozone debt crisis.
BusinessDay, with wires
Read more: http://www.smh.com.au/business/world-business/german-court-approves-bailout-fund-20120912-25sfg.html#ixzz26FQsDqbC
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