quantitative easing in europe, page-2

Challenging The Wolfpack

Posted: May 09 2010
By: Jim Sinclair

Dear CIGAs,

A nuclear solution to Europes debt problems is simply another way of saying "Quantitative Easing to Infinity."

All national debt will be bailed out. All states of the USA will be bailed out.

Paper currencies are headed to dust.

Regardless of the first knee jerk market reaction, gold is going to $1650 and beyond due to nuclear suggestions of adding more debt to entities failing because of debt. This is the EU Helicopter Drop coming up.

Credit default swaps are herein called the "Wolfpack." About that they are totally correct.

Now that they have challenged the "Wolfpack," whatever additional funds might be required will have to be provided or the "Wolfpack" will slaughter the EU.

The above at http://jsmineset.com/

EU Preps Euro Fund to Fight Wolfpack, Debt Crisis
By James G. Neuger and Meera Louis

May 9 (Bloomberg) European Union finance ministers pledged to stop a sovereign-debt crisis from shattering confidence in the euro as they held an emergency summit to hammer out a lending mechanism that may be worth around $645 billion.

Jolted into action by last weeks slide in the currency to a 14-month low and soaring bond yields in Portugal and Spain, leaders of the 16 euro nations agreed on the backstop yesterday and told ministers to get it ready before Asian markets open. The European facility may be worth around 500 billion euros, said an official familiar with the talks.

We are going to defend the euro, Spanish Economy Minister Elena Salgado told reporters as she arrived to chair todays Brussels meeting. We think we have a duty for more stability for our currency. We will do whatever is necessary.

Europes failure to contain Greeces fiscal crisis triggered a 4.3 percent drop in the euro last week, the biggest weekly decline since the aftermath of Lehman Brothers Holdings Inc.s collapse. It prompted the U.S. and Asia to urge broader steps to prevent a debt crisis from pitching the world back into a recession.

President Barack Obama spoke by phone with German Chancellor Angela Merkelfor the second time in three days, adding to the international pressure Europe has faced since a hurriedly arranged conference call of Group of Seven finance chiefs on May 7. Obama today emphasized the importance of the members of the European Union taking resolute steps to build confidence in the markets, White House spokesman Bill Burton told reporters in Hampton, Virginia.

Wolfpack Behavior

In the night, when the markets are opening, we cannot afford a disappointment, said Finance Minister Anders Borg of Sweden, one of 11 EU nations not in the euro. We now see herd behavior in the markets that are really pack behavior, wolfpack behavior.

European officials declined to disclose the size of the stabilization fund, to be made up of money borrowed by the EUs central authorities with guarantees by national governments. The meeting started just after 3 p.m.

Expectations of decisive action buoyed the euro as trading began in Asia. It jumped more than 1 percent to $1.2897 as of 6:11 a.m. in Sydney, according to pricing from Westpac Banking Corp.

A link was then given to the rest of the article at http://www.businessweek.com/news/2010-05-09/eu-preps-645-billion-fund-to-fight-wolfpack-debt-crisis.html

All the above is from http://jsmineset.com/