Jim Sinclair’s Commentary
All Western states, be that New York State or Greece, will be bailed out.
QE to infinity is omnipresent in the West.
Eurozone OKs $145 billion bailout for Greece
Loans, with aid of International Monetary Fund, spread across three years
By Elena Becatoros and Raf Casert
BRUSSELS – Finance ministers from the 16 countries that use the euro agreed Sunday to rescue Greece with €110 billion in loans over three years to keep it from defaulting on its debts.
The loan package with the International Monetary Fund is also aimed at keeping Greece’s debt crisis from spreading to other financially weak countries such as Spain and Portugal — just as Europe is struggling out of a painful recession.
In return, Greece had to agree to an austerity program that will impose painful spending cuts and tax increases on its people for years to come.
The plan will still need approval by some countries’ parliaments. But the head of the eurogroup, Luxembourg’s Jean-Claude Juncker, said Greece will get the first funds by May 19, when Athens has €8.5 billion worth of a 10-year bond maturing.
Fears that the money might be held up by objections in powerful eurozone member Germany — where the Greek bailout is not popular — sent shudders through bond and stock markets last week.
Jim Sinclair’s Commentary
The on again, off again Greek rescue is for this evening on again.
Regardless of all the theatrics, every major debtor is going to be bailed out. That includes 33 states of the USA.
QE to Infinity.
Greece Gets $146 Billion Rescue on EU, IMF Austerity Package
By Gabi Thesing and Flavia Krause-Jackson
May 3 (Bloomberg) — Euro-region ministers agreed to a 110 billion-euro ($146 billion) rescue package for Greece to prevent a default and stop the worst crisis in the currency’s 11-year history from spreading through the rest of the bloc.
The first payment will be made before Greece’s next bond redemption on May 19, said Jean-Claude Juncker after chairing a meeting of euro-region finance ministers in Brussels yesterday. The 16-nation bloc will pay 80 billion euros at a rate of around 5 percent and the International Monetary Fund contributes the rest. Greece agreed to budget measures worth 13 percent of gross domestic product.
“It’s an ambitious program, it’s austere but it’s absolutely necessary,” Juncker told reporters. European Central Bank President Jean-Claude Trichet, speaking at the same press conference, said Greece’s plan will “help to restore confidence and safeguard financial stability in the euro area.”
Policy makers agreed to the unprecedented bailout after investors’ concerns about a potential Greek default sparked a rout in Portuguese and Spanish bonds last week and sent stock markets tumbling. At stake is the future of the euro 11 years after its creators left control of fiscal policy in national capitals.
The extra yield that investors demand to hold Greek debt over German bunds surged to 826 basis points on April 28 after Standard & Poor’s cut its rating to junk. It eased to 594 points on April 30 as signs of an agreement emerged. The Portuguese spread jumped to the most since at least 1997 last week and the premium on Spain climbed to the highest since March 2009.