Hey IDC HoldersGet those flak jackets on today while Europe...

Hey IDC Holders

Get those flak jackets on today while Europe finalises a resolution to this problem, China activates their $300+Billion stimulus package and US Federal Reserve commences their next Round of Quantitative Easing!

IndoChine is in the fortunate position of sitting on $10.5million in cash at bank, 86% of our shares sitting with large multi billion dollar institutions.

A gold 1.8million ounce gold and 20 million ounce silver JORC resource valued at $3.4Billion and 7 weeks away from a PFS!

This significant drop in Markets historically has meant a swift positive reaction from Govts and Central Banks. :)

Cheers Nectar

Looks like the ESM has been fast tracked from an initial July 2013 release to July 9th 2012!

The 1 Trillion Euro ($US1.25Trillion)Firewall will be activated in a month’s time, which will allow Spanish Banks to tap into as they recapitalise in the coming weeks.

This will act as a backstop which will help to support the European economies. The longer term goal though is still Eurobonds backed by Gold Bullion.

Every country in the European Commission, France, Italy, Spain etc are all pressuring Germany to announce jointly issued Eurobonds, which will allow the PIIGS to borrow at 3-4% instead of 6-7% interest, freeing up Billions of Euros each year in lower interest payments that they can spend on their own economies. Germany is pushing back, for now, wanting some sort of guarantee that if it takes on this toxic debt, the PIIGS wont continue to spend like there is no tomorrow. As such Germany is calling for a Fiscal Pact where all EU nations get approval from Brusells before they can spend money in their economy.

A little bit of sovereign loss in return for economic prosperity in the EU.


European Union Said to Prepare Start of ESM for July 9
By Rebecca Christie - Jun 2, 2012 8:01 AM ET
The European Union is targeting July 9 as the start date for its permanent euro-area rescue fund, the 500 billion-euro ($620 billion) European Stability Mechanism, an EU official said.
Parliaments across the 17-nation currency union must ratify the fund before it becomes available to counter the financial crisis spawned in Greece. Until it receives 90 percent of its expected capital allotment, officials must turn to the temporary European Financial Stability Facility, a 440 billion-euro fund with 240 billion euros available.
June 1 (Bloomberg) -- Todd Schoenberger, managing principal at BlackBay Group, John Silvia, chief economist at Wells Fargo Securities LLC, and Matthew McLennan, portfolio manager at First Eagle Funds, discuss the European debt crisis and investment strategy. They speak with Betty Liu and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)
The start date depends mainly on the outcome in Germany, where lawmakers may vote as late as the first week of July. Considering the national approvals required, euro officials hope the July 9 target date will hold, said the official, who declined to be named because the planning isn’t public.
The ESM is the centerpiece of Europe’s $1 trillion firewall to stave off financial contagion from the debt crisis that has wreaked havoc on markets and pushed Greece, Portugal and Ireland to seek bailouts. The ESM represents the euro area’s capacity for further aid programs, since the rest of the firewall is made up of 300 billion euros already committed to the rescue effort.
The euro has dropped 6.8 percent against the dollar over the past two months, nearing a two-year low yesterday as investors grow concerned the currency area may splinter. The euro closed at $1.2415 in Brussels yesterday, up from an earlier low of $1.2288.
German Share
Germany will contribute 27 percent of the ESM’s capital, so if lawmakers there vote this month, the fund could be operational by July 1. The ESM will share staff with the existing EFSF in Luxembourg, where hiring and other preparations are under way. Participating countries must hand over the first installments of paid-in capital within 15 days of ESM ratification.
Getting the ESM in place will be an important signal to markets that the euro area continues to support the crisis- fighting plan, said Michala Marcussen, global head of economics at Paris-based Societe Generale SA. So far Portugal and France have ratified the ESM, with parliaments across the euro area slated to address the issue in coming weeks.
“It seems to be taking longer, but they are pushing,” Marcussen said May 29. “There does seem to be a possibility it’s delayed. It’s not a problem practically but it adds to uncertainty revolving around the whole situation and that’s the issue.”
-- With assistance from Zoe Schneeweiss in Vienna, Brian Parkin in Berlin and Simon Kennedy in London. Editors: James Hertling, Jeffrey Donovan
To contact the reporters on this story: Rebecca Christie in Brussels at [email protected];
To contact the editors responsible for this story: James Hertling at [email protected];