Thursday 5 May 2011
New Zealand Dollar Looks For Support, Euro Correction Offers Buying Oppo...
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Forex @ DailyFX - Guest Commentary: Gold & Silver Outlook 05.05.2011
Forex @ DailyFX - Guest Commentary: Gold & Silver Outlook 05.05.2011
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Gold & Silver Outlook – 5 May
Gold and silver continue to fall for the third straight day; let's examine the precious metal market for today, May 5th:
Gold and silver– May
Gold reached yesterday 1,515$ a decline of 1.63%, while silver reached 39.39$ a drop of 7.51%.
During May, silver decreased by 19%, while gold decreased by 2.6%. Notice as seen in the chart below, in normalized terms (100= April 1st) silver declined to a similar level gold are currently at.
As of yesterday, May 4th the ratio between gold and silver rose to 38.47. The ratio could be interpreted as one troy ounce (31.1 gram) of gold is worth 38.47 troy ounces of silver.
The gold to silver ratio rose very rapidly by over 20% during May. This shift in trend is the first one in 2011.
The Effect of the Increase in Silver Margins
CME Group raised the margin requirements on silver trading at the beginning of the week. This was the second margin increase within a week's time. Under the recent terms the minimum amount needed to deposit will be 16,200$ per contract, an increase of 11.6% from the pervious amount needed. The ramifications of that announcement seem very clear as silver, as presented above deseeded very precipitately during the week.
The Fed Chairman's Speech
Ben Bernanke is set to speak today. The title of his speech is "Implementing a Macro prudential Approach to Supervision and Regulation ".
In this speech, he might also refer to the progress of the US economy and the stimulus plan that Fed is implementing. During last week, the news about the US economy's slowdown and the Fed's pledge to continue the quantitative easing plan might have be among the reasons for the rapid increase in gold and silver by the end of last week.
The US dollar
As presented in the monthly analysis about gold and silver, the weak dollar compared to major currencies probably contributed to the rise in gold and silver during April, but the current weakness in the US dollar seem to have taken the back seat in affecting these precious metals' prices. This is due to the rise in the effect of other factors as presented above.
The News on the Demise of Bin Laden
The news on the killing of head of al-Qaida - Osama Bin Laden continues to occupy the news in the following days to come. The initial reaction to this breaking news on the financial markets and major commodities markets dissipated and currently the financial markets seem stabilize and are now being affected by other factors.
Update from Middle East
Currently most of the Libyan fighting takes place in the rebel-held city of Misrata where Gaddafi's forces continue to strike the rebels.
Gold and silver Outlook and Analysis:
The freefall of silver seems to level out today and silver is traded at a moderate rate change which might continue throughout the day. The correction made in silver with the increase in of CME margin might be over as silver price declined to the levels gold price are at in terms of normalized prices as seen above. Nevertheless, gold and silver might continue to decline vis-à-vis the news about bin Laden's demise.
Here is a reminder of the top events and reports that are planed for today (all times GMT):
Today
13.30 – Department of Labor report – US unemployment claims
14.30 – Ben Bernanke, Chairman of Fed, speaks
15.30 – EIA report about Natural gas storage
Tomorrow
12.00 – Canada unemployment rate report
13.30 – US unemployment rate report & non-farm employment change
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Buy The Dip Bullion Potential
http://www.fxstreet.com/technical/market-view/daily-client-note/2011/05/05/04/
Daily Currency Note
Buy The Dip Bullion PotentialThu, May 5 2011, 09:29 GMT
by TheLFB Trade Team - TheLFB
Sentiment towards bullion positions remains mixed after three sessions of trade that dropped gold from 1576, to hold support just above the 20-day Simple Moving Average at 1505. GLD values are holding above the price channel set in the last two weeks of April, with long mid-term trend reads, and mixed momentum mid-term order flows.
The $70 drop in gold bullion futures contract trade is being attributed to an overbought reaction to the $46 move higher on Apr 29 11. The drop lower is in-line with a reversal in silver trade that looks to have been initiated by overbought technical conditions, and massive margin hikes by the Chicago Mercantile Exchange (CME) for opening and maintaining a silver futures contract.
The CME has initiated its 5th margin hike in 8 days, which translate into an initial silver margin requirement of $21,600, which is 11% of the contract value, while the maintenance is going to cost $16,000. At these margin levels it is no wonder that traders are moving towards forex as a vehicle to replicate the bullion moves, at far less margin cost, and with 24-hours a day access to a highly liquid market. Equity, bullion, and oil signals and alerts will normally have a forex alternative that will replicate the moves.
The Apr 29 11 Silver signal sent to clients, short from 47.50, has hit its two main targets and is now consolidating just above the 50-day SMA area at 38.70. There are no new SLV (ETF) signals forming, and patience is now required as fair value is found. Alerts will be sent directly to clients as price action builds.
TheLFB Silver Futures 1-Hour Chart
There have not been many times this year that bullion markets have failed to get bought on the dip, and as the chart detail above shows, the downside targets will be 36.95 and 35.00 if silver breaks lower.
The long trend and oversold near-term SLV and GLD (ETF) charts are signaling that support may be in place. Alerts will be sent directly to clients as things evolve.
Existing long bullion positions will likely be held, while newly-formed short positions will run the gauntlet of volatile trade over the next 24 hours. The next sustainable mid-term will be dominated the equity and Treasury market reactions to Friday’s Non-farm Payroll report from the US.
TheLFB Gold Futures 1-Hour Chart
There were major buyers in at 1490 on gold during April trade, which is a major potential swing point area. Downside moves through 1490 draw in a test of 1484 and 1464, but as noted above, a new short signal has not yet been confirmed.
Caution is required in expecting a collapse in GLD and SLV values; there has been massive market-wide interest in building the bullish trend, and it will take a lot more than three days of selling ahead of a major news release to reverse the trend.
TheLFB client note updates for near-term moves lower have completed the first leg and positions should be cleared. TheLFB Subscribers will be notified the moment that price action breaks.
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Daily Currency Note
Buy The Dip Bullion PotentialThu, May 5 2011, 09:29 GMT
by TheLFB Trade Team - TheLFB
Sentiment towards bullion positions remains mixed after three sessions of trade that dropped gold from 1576, to hold support just above the 20-day Simple Moving Average at 1505. GLD values are holding above the price channel set in the last two weeks of April, with long mid-term trend reads, and mixed momentum mid-term order flows.
The $70 drop in gold bullion futures contract trade is being attributed to an overbought reaction to the $46 move higher on Apr 29 11. The drop lower is in-line with a reversal in silver trade that looks to have been initiated by overbought technical conditions, and massive margin hikes by the Chicago Mercantile Exchange (CME) for opening and maintaining a silver futures contract.
The CME has initiated its 5th margin hike in 8 days, which translate into an initial silver margin requirement of $21,600, which is 11% of the contract value, while the maintenance is going to cost $16,000. At these margin levels it is no wonder that traders are moving towards forex as a vehicle to replicate the bullion moves, at far less margin cost, and with 24-hours a day access to a highly liquid market. Equity, bullion, and oil signals and alerts will normally have a forex alternative that will replicate the moves.
The Apr 29 11 Silver signal sent to clients, short from 47.50, has hit its two main targets and is now consolidating just above the 50-day SMA area at 38.70. There are no new SLV (ETF) signals forming, and patience is now required as fair value is found. Alerts will be sent directly to clients as price action builds.
TheLFB Silver Futures 1-Hour Chart
There have not been many times this year that bullion markets have failed to get bought on the dip, and as the chart detail above shows, the downside targets will be 36.95 and 35.00 if silver breaks lower.
The long trend and oversold near-term SLV and GLD (ETF) charts are signaling that support may be in place. Alerts will be sent directly to clients as things evolve.
Existing long bullion positions will likely be held, while newly-formed short positions will run the gauntlet of volatile trade over the next 24 hours. The next sustainable mid-term will be dominated the equity and Treasury market reactions to Friday’s Non-farm Payroll report from the US.
TheLFB Gold Futures 1-Hour Chart
There were major buyers in at 1490 on gold during April trade, which is a major potential swing point area. Downside moves through 1490 draw in a test of 1484 and 1464, but as noted above, a new short signal has not yet been confirmed.
Caution is required in expecting a collapse in GLD and SLV values; there has been massive market-wide interest in building the bullish trend, and it will take a lot more than three days of selling ahead of a major news release to reverse the trend.
TheLFB client note updates for near-term moves lower have completed the first leg and positions should be cleared. TheLFB Subscribers will be notified the moment that price action breaks.
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Commodities Prices - Jim Rogers: Oil Price Will Keep Rising; Silver to Fall - CNBC
Commodities Prices - Jim Rogers: Oil Price Will Keep Rising; Silver to Fall - CNBC
Published: Thursday, 5 May 2011 | 5:40 AM ET
Oil prices are likely to continue rising because the world's oil reserves are dwindling, but silver is likely to come down because it rose too fast, famous investor and commodities bull Jim Rogers told CNBC Thursday.
In March, Rogers predicted that crude prices will rise over the next decade.
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Getty Images Jim Rogers |
"Where is the oil? I still want to know where is the oil? You know why the price of oil [CLCV1 107.94 
-1.30 (-1.19%)] is going up? Because there is no oil," he said.
-1.30 (-1.19%)] is going up? Because there is no oil," he said.But if the price is going too high, the race to find the last drops of crude will accentuate, before the search for alternative energy resources yields results, according to Rogers.
"At $300 a barrel they would be drilling for oil under Buckingham palace," he said.
The International Energy Agency "has come to the conclusion that the world's oil reserves decline by six percent a year," and that is an argument for the rising price of crude, Rogers said.
"Say they don't decline by six percent, say they decline by four percent. That means in 25 years there's no oil at any price," he said, adding that rising oil prices will "hurt some people very badly" and some companies will go out of business.
"We will certainly have dips (in oil prices), we will certainly have consolidation, I hope we do. If oil goes into a spike, if it goes parabolic, you have to sell it," Rogers said.
The world uses 86 million barrels of oil every day, he pointed out, adding: "we found some big oil fields in Brazil and let's say the bull estimates there are correct, that's still only two years worth."
Silver Has to Come Down
He did not comment on market talk that the firm of George Soros – his former colleagues at the Quantum Fund in the 1970s - has been selling gold [XAU= 1506.40 -9.25 (-0.61%) 
], which rose from around $1,345 in late January to more than $1,500.
-9.25 (-0.61%) ], which rose from around $1,345 in late January to more than $1,500."I have no idea, that was 31 years ago, you might as well ask me about my first wife, I haven’t seen her either," Rogers said.
"I do know that silver [XAG= 38.17 -1.17 (-2.97%) ] went up 25 percent in a month and that can’t last so that’ll have to come down," he added.
-1.17 (-2.97%) ] went up 25 percent in a month and that can’t last so that’ll have to come down," he added."I hope we have a pull-back, I hope it goes down for a while, it’ll be good for the market," Rogers said. "In 1987 stocks went down 30 to 40 percent, smart people went in a bought more. If it goes down I hope I’m smart enough to buy move silver."
He reiterated his view that some countries in the euro zone are "just bankrupt" but said he owns the euro and is not looking to sell, due to the European Central Bank's policy of fighting inflation.
"I own the euro [EUR=X 1.4849 
0.0024 (+0.16%) ], I’m not thinking about selling the euro for fundamentally good reasons the ECB is dong a much better job than the US central bank," Rogers said.
0.0024 (+0.16%) ], I’m not thinking about selling the euro for fundamentally good reasons the ECB is dong a much better job than the US central bank," Rogers said."Nobody has ever been better off for debasing your currency and America is doing a terribly wrong thing. Britain debased its currency for decades and it didn’t help," he added.
"I as an investor would be even more bullish on the euro if the central bank takes action," Rogers said.
The Fed and Election Cycles
He reiterated his criticism of the Federal Reserve and of Chairman Ben Bernanke, saying he was not impressed by his first news conference.
"All he said was that he didn’t know much about anything. When he was asked about currency movements I nearly fell off my chair," Rogers said.
“What does he know about? He doesn’t know about currency movements, he doesn’t know about anything but he does know about printing money, he built his entire intellectual career around printing money and the government has given him control of the printing presses," he added.
The Fed will likely stop the second round of quantitative easing – asset-buying to keep interest rates low – in the summer, but it will step in again when the economy starts slowing down again, especially since 2012 is an election year, Rogers said.
“The Fed has always been aware of election cycles and tries to make the economy good ever since the 1980s; I don’t say that with admiration, I say that with scorn," he added.
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.CNBC Stock Market News — China's 'Facebook' Renren Surges on First Trading Day — CNBC.com Stock Blog - CNBC
CNBC Stock Market News — China's 'Facebook' Renren Surges on First Trading Day — CNBC.com Stock Blog - CNBC
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Renren shares rose in their market debut Wednesday after the company priced its initial public offering at the top of an expected range.
Shares traded up 37 percent at $19.20 in morning trading while the broader markets edged lower.
The company is raising about $743.4 million from the sale of 53.1 million American depositary shares at $14 each. One ADS is equal to three ordinary shares of the company.
Renren [RENN 18.01 4.01 (+28.64%) ], which runs an online social network in China, indicated in a regulatory filing that the offering was expected to price between $12 and $14 per ADS.
4.01 (+28.64%) ], which runs an online social network in China, indicated in a regulatory filing that the offering was expected to price between $12 and $14 per ADS.The Beijing company is offering about 42.9 million ADSs, while selling shareholders are offering approximately 10.2 million ADSs. The company will not receive any proceeds from ADSs sold by the selling stockholders.
Renren is giving the underwriters a 30-day option to buy up to an additional 8 million ADSs to cover any excess demand.
The company said in the filing that it plans to use net proceeds and concurrent private placements to invest in its technology and research and development; to expand its sales and marketing operations and for general corporate purposes such as potential acquisitions and investments.
Renren reported a loss of $64.2 million in 2010 on revenue of $76.5 million.
Renren is listed on the New York Stock Exchange under the "RENN" ticker symbol.
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Bob Chapman on Discount Gold And Silver Trading 04 May 2011
gold and silver looking for a bottom now ,this is a definate attempt to rig the market ... you will see silver run back up next Monday ,...we are living in a corporate fascist society run by a bunch of Nazis , our government and Wall street are full of Nazis says Bob Chapman of the international forecaster they want virtually untouched profits free gain with no regulations no anti trust laws they want to do anything they want to do and as a result of that they create monopolies
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Gold Prices: Silver Falls After COMEX Margin Hike - CNBC
Gold Prices: Silver Falls After COMEX Margin Hike - CNBC
Published: Wednesday, 4 May 2011 | 9:36 PM ET
http://www.cnbc.com/id/42907613?__source=RSS*tag*&par=RSS&utm_source=twitterfeed&utm_medium=twitter
Spot gold [XAU= 1517.89 2.24 (+0.15%) ] was little changed at $1,516.29 an ounce, after falling for three sessions straight.
Silver Falls After COMEX Margin Hike
http://www.cnbc.com/id/42907613?__source=RSS*tag*&par=RSS&utm_source=twitterfeed&utm_medium=twitter
Silver prices fell 1 percent on Thursday to a one-month low, after the CME Group hiked margin requirement on COMEX silver again, while gold held steady.
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Thomas Northcut | Photodisc | Getty Images |
2.24 (+0.15%) ] was little changed at $1,516.29 an ounce, after falling for three sessions straight. COMEX gold futures [GCCV1 1517.50 2.20 (+0.15%) ] edged up $1.30 to $1,516.60.
2.20 (+0.15%) ] edged up $1.30 to $1,516.60. COMEX silver futures [SICV1 39.00 -0.383 (-0.97%) ] fell 1.2 percent to a one-month low of $38.91.
-0.383 (-0.97%) ] fell 1.2 percent to a one-month low of $38.91.Spot silver [XAG= 39.08 -0.26 (-0.66%) ] fell by 1 percent to $38.92.
-0.26 (-0.66%) ] fell by 1 percent to $38.92. The CME Group [CME.O 287.23 -4.49 (-1.54%) ] set successive hikes on COMEX silver futures margin, pushing margin up 84 percent in just eight days.
-4.49 (-1.54%) ] set successive hikes on COMEX silver futures margin, pushing margin up 84 percent in just eight days.As COMEX silver tumbled under the weight of surging margins, the iShares Silver Trust [SLV 38.271 -2.309 (-5.69%) ], the world's largest silver-backed exchange-traded fund, experienced a near 5 percent fall in its holdings.
-2.309 (-5.69%) ], the world's largest silver-backed exchange-traded fund, experienced a near 5 percent fall in its holdings.Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.
Weak economic figures heightened stock investors' anxiety over the extended rally, knocking U.S. shares lower for a third day on Wednesday.
The euro hovered near a 17-month high versus a droopy dollar early in Asia on Thursday as markets braced for more hawkish rhetoric from the European Central Bank after its policy meeting later in the day.
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Silver Manipulation Escalates as Desperate Banksters use CME to Drive Pr...
WEDNESDAY, MAY 4, 2011
Banksters use CME to Drive Silver Prices Down
Silver Manipulation Escalates as Desperate Banksters use CME to Drive Prices Down , a great opportunity to buy the dip , this opportunity may never present itself again ... CME raises silver margin requirements for 4th time .Margin requirement in silver: you have to put $15,000 down to bet on 5000 oz of silver. So $15,000 controls $200,000 of silver.Raising the margin requirement means you have to put more money down as collateral before you can bet on silver.
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) , Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
7 shortlisted for US$2.5 billion Vale mega project
7 shortlisted for Vale mega projectIt is understood that Muhibbah Engineering, Gadang and Sunway Construction are among the seven companies that have been shortlisted.
Read more: 7 shortlisted for Vale mega project http://www.btimes.com.my/Current_News/BTIMES/articles/VALEXXX-2/Article/index_html#ixzz1LRe5pyno
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Kuala Lumpur: Brazil's Vale International SA, the world's second largest mining company, has shortlisted as many as seven Malaysian companies to undertake the first phase of a US$2.5 billion (RM7.45 billion) infrastructure development project in Perak.
People involved in the tender process told Business Times that the seven companies shortlisted for the first phase work are required to submit a detailed plan by next week.
It is understood that Muhibbah Engineering (M) Bhd, Gadang Bhd and Sunway Construction Bhd are among the seven companies that have been shortlisted.
"All the submissions will have to be in by the 10th of May," said a source.
It is believed that the first phase will focus on earth works job, as well as the flattening of land in the area.
The total cost for the earth work portion of the contract is estimated to be in the region of between RM200 million and RM300 million.
It is further understood that Vale expects the chosen contractor to start work at the site by as early as July.
Earlier, KYM Holdings Bhd was awarded a contract by Vale to act as consultant and also to help in securing land and development order approval from the relevant government authorities
Last year, Vale also bought more than 460 hectares of land in Teluk Rubiah, Manjung, near the Straits of Malacca from KYM Holdings Bhd for slightlty more than RM200 million.
The land will be used to build a distribution centre and a pelletising plant, which will be able to convert raw iron ore into pellets that are used in steel production.
Vale also intends to build a sea port for its own use as it will be able to ship the pellets to China and India at a cheaper cost.
The seaport terminal will have a sufficient depth to accommodate ships of 400,000 dead weight tonnes and handling capacity for moving up to 30 million tonnes of iron ore in the initial phase.
Previous reports citing Vale had said that the first phase will involve a total capital expenditure of US$900 million (RM2.68 billion), which includes the US$98 million (RM292 million) the company had already spent in 2010.
Read more: 7 shortlisted for Vale mega project http://www.btimes.com.my/Current_News/BTIMES/articles/VALEXXX-2/Article/index_html#ixzz1LRe5pyno
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Catching the silver and gold knives
Catching the silver and gold knives
Silver futures chart. I expect it to be tricky to trade. I was scaling back into some miners today in my longer term account. Scalping gold and silver, but no longer term position yet. Will be watching these zones.
Silver chart with notes.
Gold hourly.
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
04/07/2011 Oscar Carboni Gives a Technical Analysis Class
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Big Mike Breaks the Deficit Down
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Portuguese distrust the EU, IMF's helping hand
Portuguese distrust the EU, IMF's helping hand
Read more: http://www.montrealgazette.com/news/Portuguese+distrust+helping+hand/4728157/story.html#ixzz1LR7ya3Qz
Read more: http://www.montrealgazette.com/news/Portuguese+distrust+helping+hand/4728157/story.html#ixzz1LR86pH2v
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
Portuguese distrust the EU, IMF's helping hand
Read more: http://www.montrealgazette.com/news/Portuguese+distrust+helping+hand/4728157/story.html#ixzz1LR7ya3Qz
LISBON, Portgual — Confusion reigned in Portugal on Wednesday over the implications of the bailout deal that was reached with the European Union and the International Monetary Fund.
A positive evaluation of the deal given by Prime Minister Jose Socrates was "political propaganda," economist Alvaro Santos Pereira said.
"We will only know the truth when the EU and IMF speak out," he added.
Socrates announced a "good agreement" with the two institutions late Tuesday, but the EU did not want to confirm the deal until obtaining the backing of the conservative opposition.
Cross-party support was deemed essential to make sure that the bailout conditions will be respected by the new government that will emerge from the June 5 elections.
Government sources put the bailout at $115 billion, but there was no official confirmation for that figure.
Financial markets welcomed the deal, with Portugal's bond yields going down, even if three-month treasury bills were only sold at high interest rates.
Socrates said the bailout would require relatively few new sacrifices from ordinary citizens, but critics accused him of hiding the real nature of the tough conditions imposed by the creditors.
"My pension only amounts to 300 euros ($445) a month, and now I hear that taxes on transport and housing are going up. That is crazy," a 66-year-old man named Joao said.
There has long been concern about the financial rescue increasing poverty in what is already Western Europe's poorest country.
Socrates presented the bailout conditions as more lenient than those agreed with Greece and Ireland, the two eurozone countries that were rescued before Portugal.
The deal was essentially just a somewhat tougher version of the government's fourth austerity package, the premier said. A rejection of that package by parliament led to Socrates' resignation on March 23 and prompted President Anibal Cavaco Silva to call snap elections.
There would be no cuts to lower-level pensions, no salary or job cuts for civil servants, and no undermining of the national health service, Socrates pledged.
The pledges were met with skepticism, with communist representative Agostinho Lopes saying the only aim of the loan package was to "save banks."
The bailout conditions included "a brutal reduction of public investments, closing public services, privatizations," he complained.
Lopes described the rescue deal as a "road to disaster" after which Portugal would be financially even worse off.
Even conservative representative Fernando Nobre, whose Social Democratic Party was expected to back the package, slammed it as a "violent attack" against the welfare state.
Socrates' earlier austerity policies already hit citizens hard, with some aid organizations saying they are unable to cope with the ballooning numbers of people relying on charity to survive.
According to the news agency Lusa, the draft bailout agreement showed a trimming of the public administration, raising of taxes, cuts in social spending and a restructuring of the judiciary.
The draft issued a gloomy economic forecast, saying the Portuguese economy would contract 2 per ent in 2011 and 2012 before beginning to recover in 2013.
© Copyright (c) McClatchy-Tribune Information Services
Read more: http://www.montrealgazette.com/news/Portuguese+distrust+helping+hand/4728157/story.html#ixzz1LR86pH2v
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
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