IAMGOLD Corporation (NYSE:IAG), NovaGold Resources Inc. (AMEX:NG), Yamana Gold (NYSE:AUY) and Kinross Gold Corp (NYSE:KGC) as the gold price climbed on the credit downgrade of Portugal by Moody's (NYSE:MCO) and concerns China may follow, as it battles inflation.
The gold price jumped $14.80 to $1,527 an ounce at the Comex division of the New York Mercantile Exchange Wednesday after China announced it would be boosting interest rates for the third time in 2011. The price of gold dropped as low as $1,510 an ounce before rebounding up to $1,529 after the People’s Bank of China said that the one-year lending rate will be increased from 6.31 percent to 6.56 percent, going into effect Thursday.
Next week China will release its consumer price index figures, which are expected to jump above 6 percent.
With Portugal downgraded to junk status, Greece with only a promise to implement austerity measures, and the U.S. sinking into economic oblivion, safe-haven assets like gold continue to be the focus of investors, as the clueless Obama administration and Democrats continue to battle to raise the debt ceiling at a time when spending needs to be cut back.
With Republicans being voted in to fight against outrageous government spending, they are under pressure to come through in fighting against raising the debt ceiling and cutting back on the size of government and it spending, it is a momentous time for them, as they have a chance to secure long-term rule if they have an ounce of courage and integrity to keep their promises.
Kinross closed at $16.67, gaining $0.13, or 0.79 percent. Yamana closed at $12.52, jumping $0.35, or 2.88 percent. NovaGold ended the session at $10.22, up $0.11, or 1.09 percent. Iamgold closed at $19.25, rising $0.04, or 0.21 percent.
Showing posts with label Portugal Sovereign Debt. Show all posts
Showing posts with label Portugal Sovereign Debt. Show all posts
Thursday, July 7, 2011
Monday, March 21, 2011
Portugal Rejecting Austerity Measures, Government Ready to Collapse
In what could be one of the most underreported financial stories, possibly bordering in the dereletion of duty by journalists and media outlets, the EU is again in danger concerning the ongoing sovereign debt crisis, as main opposition parties in Portugal are now saying the won't back a new set of austerity measures to battle the out-of-control debt the country has in place.
The new steps are likely to be rejected in a parliamentary vote expected Wednesday and the timing could not be worse. A defeat in the vote, Prime Minister Jose Socrates warned, would trigger his government's resignation, consigning Portugal to at least two months of political limbo just as officials were hoping to boost investor confidence in the country's future.
"At this point, a political crisis is a big push towards the country resorting to outside help," Finance Minister Fernando Teixeira dos Santos said.
The national political crisis also threatens to set back Europe's broader plan to stamp out the debt market jitters -- leaders at a two-day summit starting Thursday will seek to ratify key changes to the bloc's rescue fund and spare Portugal the need to surrender policy decisions to outside authorities through a bailout.
The new European policy would allow the fund to purchase government debt, easing market pressure which has driven the borrowing costs of weak countries to unsustainable levels. European leaders hope the response will herald the end of the debt crisis that has dragged on for more than a year.
That deal, however, was contingent on Portugal implementing the austerity measures that are unlikely to survive the country's political standoff.
Portugal's center-left Socialist government, which has insisted it doesn't want or need a bailout, won the backing of the European Central Bank and the European Commission for that new austerity plan. The ECB has already been helping Portugal by buying its government debt and providing funds to its banks.
The condition of the EU in reference to sovereign debt is tenuous at the very best, and any set of events could trigger the contagion they're in deathly fear of, regardless of the bailing out of smaller countries giving the appearance that the matter has been taken care of.
Greece, and now Portugal, show that the underlying reasons for the debt crisis in the first place, the socialist ideology of governments taking the place of God and being the provider of just about everything, has proven again to be a fallacy and based in an unsustainable idea that you can continue to steal from the productive and redistribute wealth to the unproductive.
Source
The new steps are likely to be rejected in a parliamentary vote expected Wednesday and the timing could not be worse. A defeat in the vote, Prime Minister Jose Socrates warned, would trigger his government's resignation, consigning Portugal to at least two months of political limbo just as officials were hoping to boost investor confidence in the country's future.
"At this point, a political crisis is a big push towards the country resorting to outside help," Finance Minister Fernando Teixeira dos Santos said.
The national political crisis also threatens to set back Europe's broader plan to stamp out the debt market jitters -- leaders at a two-day summit starting Thursday will seek to ratify key changes to the bloc's rescue fund and spare Portugal the need to surrender policy decisions to outside authorities through a bailout.
The new European policy would allow the fund to purchase government debt, easing market pressure which has driven the borrowing costs of weak countries to unsustainable levels. European leaders hope the response will herald the end of the debt crisis that has dragged on for more than a year.
That deal, however, was contingent on Portugal implementing the austerity measures that are unlikely to survive the country's political standoff.
Portugal's center-left Socialist government, which has insisted it doesn't want or need a bailout, won the backing of the European Central Bank and the European Commission for that new austerity plan. The ECB has already been helping Portugal by buying its government debt and providing funds to its banks.
The condition of the EU in reference to sovereign debt is tenuous at the very best, and any set of events could trigger the contagion they're in deathly fear of, regardless of the bailing out of smaller countries giving the appearance that the matter has been taken care of.
Greece, and now Portugal, show that the underlying reasons for the debt crisis in the first place, the socialist ideology of governments taking the place of God and being the provider of just about everything, has proven again to be a fallacy and based in an unsustainable idea that you can continue to steal from the productive and redistribute wealth to the unproductive.
Source
Friday, November 19, 2010
Citigroup (NYSE:C) Sees Greek, Irish, Portuguese Bonds Continuing to Fall
As risks increase for the sovereign debt of Greece, Ireland and Portugal, Citigroup (NYSE:C) says they see bonds in the countries continuing to fall, as the crisis grows.
Citigroup said, “Ireland, Portugal and Greece have underperformed significantly, but we do not think by anywhere near far enough yet. There’s a long way further to go if the situation deteriorates.”
The yield on Irish bonds rose for the third day in a row, with the yield on 10-year bonds increasing by three basis points to 8.28 percent. Bonds from Portugal fell four basis points to 6.88 percent and in Greece they fell one basis point to 11.71 percent.
The other problem is no one knows how much corruption is still involved in the sovereign debt crisis, as Greece recently stated their deficits were larger than they believed, creating uncertainty as to competency or honesty in the matter, both of which are detrimental.
There seems to be a nod and a wink toward these and other countries as well, as the European Union apparently is ready to do anything in order to survive, even if it backfires and punishes the euro like it has been, which could do more to unravel the EU than anything else.
Citigroup said, “Ireland, Portugal and Greece have underperformed significantly, but we do not think by anywhere near far enough yet. There’s a long way further to go if the situation deteriorates.”
The yield on Irish bonds rose for the third day in a row, with the yield on 10-year bonds increasing by three basis points to 8.28 percent. Bonds from Portugal fell four basis points to 6.88 percent and in Greece they fell one basis point to 11.71 percent.
The other problem is no one knows how much corruption is still involved in the sovereign debt crisis, as Greece recently stated their deficits were larger than they believed, creating uncertainty as to competency or honesty in the matter, both of which are detrimental.
There seems to be a nod and a wink toward these and other countries as well, as the European Union apparently is ready to do anything in order to survive, even if it backfires and punishes the euro like it has been, which could do more to unravel the EU than anything else.
Tuesday, July 13, 2010
Gold Futures Explode Upward as Portugal's Sovereign Debt Rating Slashed by Moody's (NYSE:MC)
Moody's (NYSE:MC) did some surgery on the sovereign debt rating of Portugal today, taking the scalpel to the country by cutting the rating by two notches, reminding people the sovereign debt crisis in Europe remains, and is a threat to the global economy. Investors flocked to gold for safety, and gold prices today have already risen by $18.30, to $1,215.40.
Portugal's government bonds were cut from A1 to Aa2.
Moody's said there is little hope for economic growth in the country at this time, the reason for the downgrade.
I laugh now that a couple of days ago some analysts were quick to jump on the idea that the gold rally was over because of its temporary correction.
Nothing has changed economically around the world, and we're a far way from things turning around in a sustainable or meaningful way.
Gold will continue to rise as reports of the real economic condition are revealed from time to time.
Portugal's government bonds were cut from A1 to Aa2.
Moody's said there is little hope for economic growth in the country at this time, the reason for the downgrade.
I laugh now that a couple of days ago some analysts were quick to jump on the idea that the gold rally was over because of its temporary correction.
Nothing has changed economically around the world, and we're a far way from things turning around in a sustainable or meaningful way.
Gold will continue to rise as reports of the real economic condition are revealed from time to time.
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