Hey IDC Holders
As economists we need to read the current and future state of the global economy and take advantage of the situation by applying simple economic principals, and investing accordingly in order to profit from these events in the coming weeks!
The planets are aligning for IndoChine Mining! This is the best time in 50 years for Mt Kare to begin giving up her gold and silver!
Just as IndoChine Mining is about to complete the most important milestone achievements in the company's history in the next 2-3 weeks! :)
The ECB is days away from activating the single biggest Bond Buying Program in its history with the aim to cap Bond Yields for Spanish and Italian Debt to manageable levels, which has been the cause of the oversold position in markets over the last 6 months.
Even Germany is backing this Bond Buying program by the ECB, since their economy has slowed to a trickle in the last 3 months! How is the ECB going to pay for this program? By printing money!
http://www.bloomberg.com/video/germany-finally-backs-ecb-bond-buying-plans-S~RIErHyRWebRVAzcmrFPA.html
What will that do the price of gold and silver?
Rise significantly!
We have also seen a moderation by Germany towards Greece to give them more time to meet these austerity measures, after months of negative speculation about a Euro Breakup!
Coupled with this we are seeing continued stimulus from China. last night the People's Bank of China, their Central Bank increased the money supply with a massive one off 220Billion Yuan ($34Billion) stimulus. Normally this would be done over a period of 4 weeks. (With a lot more stimulus to come!)
All this stimulus which is currently being released, as well as the hundreds of billions of Euros that will be printed that will be used to buy these Bonds will lift the price of gold well above its current levels!
We can expect to see more and more announcements from govts and central banks with more stimulus in coming weeks, reversing the fall in markets. The Materials and Energy sectors on the ASX will be the main beneficiary of stimulus measures from China, Europe and soon the USA!
We are set for a very exciting time for our ASX in the coming months!
Cheers Nectar
China's PBOC Injects $34.7 Billion Into Money Market
11:15 PM ET on Monday, August 20, 2012
-- PBOC injects CNY220 billion into money market Tuesday via seven-day reverse repo offering
-- Injection adds to CNY916 billion in reverse repos offered over past eight weeks
SHANGHAI--The People's Bank of China injected 220 billion yuan ($34.7 billion) into the money market Tuesday via reverse repurchase agreements offered in its regular open-market operation, continuing efforts to ease monetary conditions and bolster a slowing economy.
The liquidity injection adds to the central bank's CNY916 billion of reverse repos offered over the past eight weeks, and comes after data showed China's gross domestic product grew 7.6% in the second quarter from a year earlier, easing from the first quarter's 8.1%. The second-quarter GDP growth was also the slowest since the first quarter of 2009.
In a statement Tuesday, the PBOC said it offered CNY150 billion of seven-day reverse repos at 3.40%, up from the rate of 3.35% on similar reverse repos it offered last week. The central bank also offered CNY70 billion of 14-day reverse repos at 3.60%, unchanged from the rate on 14-day reverse repos it offered last week.
The central bank carries out regular open-market operations Tuesdays and Thursdays, offering bills and repurchase agreements to control liquidity in the money market.
This week, CNY33 billion of bills and repos and CNY120 billion of reverse repos mature.
Write to Wang Ming at [email protected]
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