Sunday, February 26, 2012

TARP $2T.O: G20 Moves to Line Up Huge Rescue Deal for April

Mexico's President Felipe Calderon (C) gives a speech during the Group of Twenty (G20) leading economies' finance ministers and central bankers meeting in Mexico City February 25, 2012. REUTERS-Ariel Gutierrez-Presidential Palace-Handout

The G20 today lined up a $2 TRILLION quantitative easing deal for April according to reports.  The question to ask yourself is what exactly is the G20 expecting to occur by April that will require twice the amount of liquidity and printing that was agreed upon during the depths of the 2008-2009 financial crisis?

(Reuters) – The world’s leading economies worked on Sunday to line up a deal in April on a second global rescue package worth nearly $2 trillion to stop the euro-zone sovereign debt crisis from spreading and putting at risk the tentative recovery.

Germany said it would make a decision some time in March on strengthening Europe’s bailout fund, a move other Group of 20 countries say is essential to clear the way for throwing extra funds into the International Monetary Fund.
The twin proposals would build up massive international resources by the end of April – when the G20 group next meets – and convince financial markets they can stem the euro-zone’s deep problems.
It would mark their boldest effort since 2009, when the G20 mustered $1 trillion to help rescue the world economy.
British finance minister George Osborne said there would be no additional resources committed to the IMF until euro zone countries bolstered their own efforts to stop contagion.
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This is enormously bullish news for precious metals.  For those who don't recall, silver nearly made a 6-bagger over the 24 months following the initial $1 Trillion agreement by the G-20 in early 2009.  This liquidity WILL find its way to tangible assets such as silver, gold, oil, wheat, corn, etc.