OECD Eurozone austerity vs eurobonds

Any news about growth initiatives in the Eurozone is likely to have some effect on the price of silver.

There is a meeting scheduled for May 23, 2012
when the OECD will attempt to convince
the ECB to loosen up on the
austerity measures that have been
applied to the Eurozone as of late.
Loosening the austerity measures likely would
involve releasing new paper into the markets.
That paper could be in the form of Eurobonds if
the suggestion of the OECB is
taken seriously

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The short leg up on this silver chart was mostly
a response to news out of the US last week
when Bernanke and the Feds were
sending out rumour waves concerning
the release of a QE3 financial amd market rescue
package in the near future should the Eurozone
crisis put more stress on bull stock investor sentiment.

OECD is the Organization for Economic Cooperation and Development ( an international financial watchdog ) and it is currently suggesting the introduction of eurobonds as a measure towards stabilizing the Eurozone economy.

Interesting links about the OECD and other players in the European debate or argument between ongoing austerity or loosening of goverment funds.

OECD - Better Policies for Better Lives

The global economy is recovering, states the OECD, however, European governments must take greater actions to ensure that the crisis in the euro area does not derail the recovery.....

Forbes Article about how Hollande is against austerity and the leaders of Italy, Spain and Ireland seem to agree with France's new leader on the topic of eurobonds.

Meanwhile Merkel of Germany is adamant that eurobonds are not the definitive solution to the financial bottleneck in Europe.

Germany insists no eurobonds to solve debt crisis

The IMF - International Monetary Fund seems to be siding with those in favor of a eurobond issue.

Geithner speaks - Jobless Claims Report - May 17, 2012

May 17, 2012 Silver 5 minute chart

News due out at 8:30 am EST.

Initial Jobless Claims by American workers.

Treasury Secretary talks on the State of the Economy in the USA

At 7:30 am silver is quoted at 27.5 USD.

Yesterday there was a spike to a new low of 26.75 from 28 USD. The price quickly recovered to 27.75 and retraced to 27.5.

365 is the expected number for the initial job claims. The last number was 370.

The actual initial jobless claim showed no change. CNN claims that any number below 400 thousand is indicative that there is some economic growth in the USA.

Treasury Secretary Timothy F. Geithner has been dealing with the JP Morgan Jamie Dimon 2 billion dollar bat bet issue for the last week. Geithner and Dimon had had discussion on the Volcker rule and stronger bank regulations in recent meetings.

" We are in a much stronger positiion to manage those challenges
than is true for any other major economy in the world "

" Europe is still caught in the grip of a very tough financial crisis "

What did Timothy Geithner have to say about the State of the Economy on May 17, 2012 ?

One hour silver chart - May 17, 2012
testing the 100 SMA

Austerity alone won't work, says Geithner. He keeps on selling the American economy as being relatively strong in spite of the global conditions but stresses that " economic growth requites a willingness to do things and not just to cut things ". Geithner's May 17, 2012 State of the Economy speech included a reminder that the road to the November elections are will be a fierce battleground or high stake game of fiscal policy promises between the Democrats and Republicans looking to sway voter confidence.

The silver markets moved up and down about 1 percent initially. The bullish silver buyer loaded up to 28 USD per ounce silver an hour or so after the markets opened.

What moves silver ?

According to most economists, the printing of new money points to inflation or in a sense to the devaluation of the USD and to the buying of silver and gold.

If the rumour of Quantitative Easing - Act 3 - continue to circulate through the financial streets then likely the fever for gold and silver will follow suit.



What Bloomberg had to say about the Jobless Claims Report of May 17, 2012.