Euro-zone finance ministers have agreed to increase the Euro-zone's rescue funds €200 billion euros to €700 billion euros. (Note: this is IN ADDITION to the €500 billion ESF!) €200 billion in NEW quantitative easing might be met with a yawn by the market, but added liquidity does not escape the attention of gold and silver.
QE to Infinity....AND BEYOND!!!
FRANKFURT (MarketWatch)—Euro-zone finance ministers on Friday agreed to temporarily boost the lending capacity of the region’s rescue funds to 700 billion euros ($934 billion) from €500 billion in an effort to convince markets they can contain the region’s long-running sovereign debt crisis.
Financial markets took the announcement in stride. The figure came in below the €1 trillion level pushed by international officials and others but was in line with overall market expectations.
In a statement, the ministers said they agreed to effectively allow the temporary European Financial Stability Facility operate in combination with the permanent, 500-billion euro European Stability Mechanism, which becomes operational in July, in order to provide an effective ceiling of 700 billion euros in lending through mid-2013. Including a total of 102 billion euros in funds already committed to Greece and other bailout countries, the overall firewall stands at 800 billion euros, the ministers said.