Gold and silver are both strongly higher today on fears related to the collapse of Portugal, and the fear that the EU will need to step up its own QE program.
Jim Sinclair called it first, and called it right when he said the whole Western world will engage in QE to infinity! If anything, Sinclair understated the matter, as QE is turning into:
From i Market News
LISBON (MNI) - Portugal's President Anibal Cavaco Silva is prepared to accept the resignation of Prime Minister Jose Socrates and is getting ready to call an election to choose a new government, Portuguese daily Jornal Publico reported on its website Wednesday evening.
The news comes as the Parliament nears the end of a debate on the minority Socialist government's proposed package of new austerity measures amid strong signs that the bill will be defeated. Rejection of the measures, which are strongly endorsed by Portugal's European Union partners, would amount to a vote of no confidence in Socrates' government.
Socrates is planning to meet with Silva at 19h00 GMT/1500 EDT, and it is widely anticipated that he will tender his resignation in that meeting if the parliamentary vote goes as is widely expected. Socrates is scheduled to address the nation at 20h00 GMT/1600 EDT this evening.
The political instability that would ensue from a collapse of the government, combined with market tensions that have pushed Portuguese ten-year bond yields to a euro-era high above 8%, seem likely to increase the pressure on Lisbon to seek a financial aid package from the European Financial Stability Facility and the International Monetary fund.
The news comes as the Parliament nears the end of a debate on the minority Socialist government's proposed package of new austerity measures amid strong signs that the bill will be defeated. Rejection of the measures, which are strongly endorsed by Portugal's European Union partners, would amount to a vote of no confidence in Socrates' government.
Socrates is planning to meet with Silva at 19h00 GMT/1500 EDT, and it is widely anticipated that he will tender his resignation in that meeting if the parliamentary vote goes as is widely expected. Socrates is scheduled to address the nation at 20h00 GMT/1600 EDT this evening.
The political instability that would ensue from a collapse of the government, combined with market tensions that have pushed Portuguese ten-year bond yields to a euro-era high above 8%, seem likely to increase the pressure on Lisbon to seek a financial aid package from the European Financial Stability Facility and the International Monetary fund.
