money printingby ecb boe boj & soon us fed :)

Hey Guys

Its all about the quality of GOLD in the Ground!!!

The ECB is about to crank up the printing press again! We received an early Christmas present late last year from Mario Draghi where he offered a zero interest to the European Banks 489Billion Euros which filled the European Banking System with liquidity, which was required because they didnt want another Lehman's moment.

Now we have money Printing Session II coming this week.

It is expected that the European banks will take advantage of ultra low interest rates and request between 200Billion to 1Trillion Euros worth of cash, and this is in addition to the previous 489 Billion Euro pump priming late last year!

This will be required to help the banks that have taken a beating because of the Greek debt losses, to make serious profits from onlending the near zero cash to govt debt, corporate debt,etc etc!

In 9-12 months time these same banks that have struggled recently making significant profits, lifting the FTSE, DAX and CAC late this year!

This cash will be lent out to companies to expand, which will then stimulate demand for goods and services and grow the economy!

The Germans approved the loans last night, soon the Dutch, Belgians will follow suit. Then G20 will then approve payments to the IMF to increase the "ESM/IMF EU Govt Debt Insurance Fund" to between 1Trillion to 2 Trillion Euros!

This will push down Yields on European Debt and lift markets.

It is all about the Gold in the Ground, the quality and quantity! And IDC has both!

:)

Cheers Nectar


ECB Loan Program May Set Euro Path

Article
Comments


By ANUSHA SHRIVASTAVA

NEW YORK—The outcome on Wednesday of the European Central Bank's discount loan program for banks will likely determine whether the euro can build on last week's gains.

The common currency hit a three-month high against the dollar Friday, trading at $1.3487 after Greece's approval of a debt-bolstering bond swap and successful Italian bond auctions.

The ECB's first so-called long-term refinancing operation in December, where banks borrowed €489 billion in three-year loans at low interest rates, is widely credited with stabilizing financial markets. That bought time for Greece and its creditors to agree on a plan to restructure the country's debt, which boosted the euro last week.

Estimates of how much money euro-zone banks will borrow from the central bank this time range from €200 billion to up to €1 trillion. If loans total at least €400 billion, it would boost confidence in the Continent's banks and be positive for the euro, analysts say.

However, if the amount is so large—close to €1 trillion—that it expands the ECB's balance sheet substantially, "it might potentially weigh somewhat on" the euro's exchange rate against the dollar, Citigroup analysts wrote in a note.

The central bank's program offered support for the banking system by reducing the fears surrounding bank funding and refinancing needs. It also "appears to have successfully restored some confidence that even at this point in the crisis it is still possible to buy more time," RBS analysts said in a note.

This is positive for the common currency even as attempts to resolve the debt crisis in Greece are ongoing.

Finance ministers from the Group of 20 nations were meeting over the weekend in Mexico, where participants were expected to pressure European officials to take additional steps to resolve the Greek debt crisis. One topic of discussion was expected to be increasing funds at the International Monetary Fund to eventually help Greece get another bailout package.

European leaders will decide by the end of March whether to enlarge the euro zone's rescue funds, German Finance Minister Wolfgang Schaeuble said Saturday, adding that "no decision" has been made. "March has 31 days," he said, speaking at a news briefing, and indicating that a decision isn't necessarily to be expected at the forthcoming European Union summit on Thursday and Friday. Speaking at the same briefing, Bundesbank President Jens Weidmann repeated his concern that rescue funds "only really buy time," which countries must use to improve their competitiveness and restore investor confidence.

Greek cabinet ministers approved the details of a debt restructuring Friday, after its parliament approved legislation to implement a €100 billion write-down on the country's debt, all preconditions to securing another bailout from international agencies and neighbors.

Among the first to vote on the Greek bailout package is Germany, whose parliament will take it up Tuesday.

Heads of state from the European Union will discuss additional measures to resolve the Greek crisis at their summit later in the week. These include potentially finalizing a new fiscal treaty and expanding the lending capacity of the European bailout facility beyond the €500 billion already agreed. Germany has already opposed such a move.

Thursday's releases of manufacturing output from China and the U.S. are the week's data highlights. In addition, Sweden reports fourth-quarter and final gross domestic product on Wednesday. Switzerland and Canada follow suit Thursday and Friday, respectively. In the U.S., jobless-claims data will be released Thursday, along with data on manufacturing, construction and consumer spending.