Jim Sinclair’s Commentary
CIGA Green Hornet hits a bull’s eye. This is the game changer for Africa which will accelerate my prediction of a new role for the continent politically, socially and economically. Tanzania has big natural gas fields which will shortly power the grid. The African Giant just woke up.
East Africa hits it big in oil, gas boom
Published: Feb. 29, 2012 at 11:13 AM
MAPUTO, Mozambique, Feb. 29 (UPI) — East Africa is emerging as the new hot zone for oil and natural gas exploration, with major discoveries by Anadarko of the United States and Italy’s Eni in the Indian Ocean off Mozambique and by Norway’s Statoil off neighboring Tanzania.
Even war-wracked Somalia, further north in the Horn of Africa, is part of the drive for energy resources in the region, with a Canadian company, Africa Oil, expecting to start producing within the next couple of months in the northern autonomous enclave of Puntland.
But the big prize there is the offshore oil and gas fields that Somali officials say contain more than 100 billion barrels of oil, more than Kuwait. If that’s the case, Somalia, torn by war since 1991, would become the seventh largest oil nation.
Deposits of similar magnitude are believed to lie under the Indian Ocean along the coast of East Africa, enough to transform the ramshackle economies of countries like Mozambique, an impoverished former Portuguese colony.
In Uganda, the big Lake Albert oil field, discovered in 2006 by London’s Tullow Oil, is expected to start production soon, eventually reaching 150,000-350,000 barrels per day.
Jim Sinclair’s Commentary
Follow the money, and you find your way directly back to the US Federal Reserve.
QE to infinity is guaranteed.
$2111 gold will offer gold opposition from the interveners as $1764 gold is doing now. However, gold will exceed both easily.
ECB hands out $712-billion in loans to banks
Published Wednesday, Feb. 29, 2012 5:42AM EST
The European Central Bank has made €529.5-billion ($712.4-billion U.S.) in low-interest loans to banks in the second round of a massive credit infusion that has been credited with easing the euro zone debt crisis.
The offer of credit for three years was taken up Wednesday by 800 banks. The uptake was modestly higher than the €489-billion ($657.9-billion U.S.) handed out to 523 banks at a first offering on Dec. 21. Banks used some of the money from the first round of loans to buy government bonds.
That lowered borrowing costs for hard-pressed governments struggling to maintain large amounts of debt, and eased fears of a market meltdown from Europe’s troubles with too much government debt.
The ECB loans, given against collateral such as bonds or other securities, cost banks the average of the ECB’s benchmark rate over the life of the loan. Right now that’s 1 per cent.
Analysts had expected the amount of new loans to come in just under that for the first offering.
The first offer of three-year, low-interest credit to banks on Dec. 21 has been credited with easing fears of a financial meltdown in the euro zone due to lack of confidence with governments with too much debt and too little growth. The cash infusion removed fears that banks in Europe might have collapsed because it couldn’t pay off bonds or other debt coming due. Following the first credit infusion, bank funding markets frozen in late 2011 began to thaw , as some banks have been able to issue new debt.