Germany Now Holds 109.194 Million Ounces of Gold

Germany now holds 109.194 million ounces of gold….in Federal Reserve vaults. lol. 
Unless Germany plans on pulling off another Die Hard With a Vengeance, we recommend they not expect to ever see their gold again.
Notice also that the headline reads that Germany lowered its reserves in October, implying the central bank is dumping gold, while buried in the article its revealed that its reserves were lowered because it minted 150,000 ounces of commemorative gold coins which were sold to the public.

World’s second largest gold reserves holder Germany lowered the reserves while five other nations including Russia piled up the yellow metal in October.


According to IMF, Germany’s central bank,the Bundesbank reduced its reserves to 109.194 million ounces in October, from 109.344 million ounces in September.
This is the first time Germany lowered reserves in nearly a year. Bundesbank sold 150,000 ounces of gold to the Ministry of Finance to mint commemorative coins.
The last time Germany’s reserves were lowered was in December 2010, when the Bundesbank reduced total holdings by 27,000 ounces, from 109.371 million ounces.
Former soviet state of Tajikistan also cuts gold reserves by 0.4 tons in October.
Meanwhile, Russia, Kazakhstan, Colombia, Belarus and Mexico added a combined 25.7 metric tons of gold valued at $1.38 billion to reserves in October, a month after prices rose to a record.
Read more:

Nexeon to Use "Magic Silver Dust" in Next-Gen Batteries

The UK’s Nexeon has developed a “magic silver dust” -silver silicon powder- that appears to be a substantial improvement from current commercial batteries.  The powder appears to have the potential to make electric cars a common site on the road.  Imagine the implications from just the US market alone should 600 million US car batteries be made with this silver silicon powder over the next decade. The demand side implications for the already tight silver market are tremendous.
Silicon anode technology is set for use in laptops, phones, even cars – sparking an electric revolution on the roads

In a small lab near Didcot in Oxfordshire a group of scientists have created a special powder that they hope will prevent phone batteries dying before you get a chance to charge up, and make electric cars a common sight on the roads.
Nexeon has created the silicon powder that it hopes is the key to creating batteries on a commercial level, which will be used in everything from laptops to cars.
This “magic” dust is a powder created by running silver through particles of silicon to create spikes of matter – what Nexeon calls a hedgehog effect – that is used to help the movement of lithium in the battery cell. The powers of the silicon powder mean that, unlike carbon-only anodes, the batteries created from this will last longer, are lighter, and their rechargeability would not fade over time…
The latest funding round last month – £40m raised from current investors including Invesco Perpetual and Tudor Capital – allows Nexeon to scale up the production of its silicon anode materials from around 2.5 tons to around 250 tons per annum. This represents a commercial supply level and is what Sony and other battery suppliers, as well as the car companies, are interested in. Just last week BMW and Toyota announced a joint research venture into lithium ion batteries.
Nexeon has 125 patent applications for its technology across the globe – with 10 granted so far.
As Atherton says: “Anyone can make a battery. But we have the magic powder.
Read more:

New Chinese Directive Makes Tianjin’s Metal Exchange Illegal

Apparently Tianjin’s Metal Exchange was competition to the Rothschild backed exchanges such as the HKMEx.

A directive from the China’s State Council has called into question the legal status of several domestic stock exchanges, including Tianjin’s precious metal exchange. The questions concern the fact the exchanges are overseen by local municipalities, not the central government.

The Tianjin precious metal exchange has outlets in Guangzhou, but many investors have exited the market for the time being out of fears over the survival of the exchange.
The State Council’s order, issued in late November, caused a stir in the domestic gold investment market, as it requires the approval of the State Council for the establishment of various exchanges.
Under these guidelines, only Shanghai’s gold exchange meets the requirements. The order affects six major exchanges in Tianjin, Hunan, Zhejiang, Kunmin, Shandong, and Shenzhen, as well as 10 other smaller trading houses.
As a result, the Hunan exchange has decided to suspend online trading for spot gold starting Dec. 24. The five other major exchanges have yet to react to the order. The largest, in Tianjin, boasts hundreds of agents throughout the nation, including dozens in Guangdong province. In recent several months, its trading value has fluctuated between one quarter and one third of the Shanghai metal exchange’s value.
The Tianjin exchange boasts 15 members and 40 outlets in Guangzhou, making its presence greater than that of Shanghai’s metal exchange in the city. In Guangzhou, 5-6 of 10 gold investment companies have traded on the Tianjin exchange.
As a result, many investors have exited the market or scaled down their trading value, due to concerns the State Council’s guidelines’ could shut down some exchanges or drastically change their rules.
Read more:

Portugese 10-Year Yield Sets New Record High of 14.138%

The yield on Portugal’s 10-year soared today to a new high of 14.138%.
The Bernank has about 1 week to come up with a real bailout of Europe or this thing’s gonna get ugly.
Forget about the IMF which needs Congressional approval, Europe will be bailed out directly by the Fed.

PORTUGUESE GOVERNMENT BONDS 10YR NOTE PORTUGAL PL (GSPT10YR:IND)

Open: 13.87600 High: 14.13800 Low: 13.84000

Gold Demand up 6% in Q3 2011

While Silver American Eagles took a nose dive last month.  Gold demand in the third quarter for 2011 was up 6% in large part due to investment demand being up 33% year over year. 

Marcus Grubb, Managing Director, Investment at the World Gold Council commented:
“Unsurprisingly investment demand for gold was a key driver during the third quarter. Increasing levels of inflation, the US credit rating downgrade, a worsening eurozone sovereign debt crisis and the lacklustre performance of many assets drove investors to increase holdings in gold in order to protect their wealth. Given gold’s proven risk mitigation properties, it is likely that investors will continue to seek protection from economic uncertainty, which shows no signs of abating.
“The long-term fundamentals for gold remain strong with a diverse and growing demand base coupled with constrained supply-side activity.”

Global Central Banks continue to expand gold reserves with Belarus, Columbia, Mexico, Kazakhstan, and Russia adding 25.7 metric tons valued at $1.57 billion U.S. dollars.

Interesting to note Canada.  Canada as of Q2 2011, with a population of 34.1 million, only holds 164.1 million dollars of gold reserves.  Belarus, with population of 9.4 million, holds 1.85 billion dollars of gold reservesCan someone help Canada here please????

Here are some charts to put it in persepective.

    
 

Gold Demand Statistics Q3 2011 and Reserves available here

2012 Top Trades of BOA – Buy Gold Versus Euro; Iran Warns of Oil at $250

Gold and the dollar are Bank of America Merrill Lynch’s top currency trades for 2012. The second-biggest U.S. bank by assets after JPMorgan Chase & Co. said that investors should buy gold versus the euro as the ECB engages in quantitative easing to contain debt turmoil. David Woo, global head of rates and currencies in New York at the Bank of America Corp. unit, told clients in research note that “the ECB will be buying more government debt and doing QE, so buy gold against the euro.” “The second major theme is U.S. fiscal tightening is about to come and the U.S. economy will slow, and this will be very good for the U.S. dollar.” “The general theme for the year ahead is pretty negative for the risk environment,” Woo said.
From Goldcore:

Gold is trading at USD 1,740.10, EUR 1,295.90, GBP 1,114.30, CHF 1,604.5, JPY 135,900 and AUD 1,700.4 per ounce.
Gold’s London AM fix this morning was USD 1,744, GBP 1,114.88, and EUR 1,296.08 per ounce.
Friday’s AM fix was USD 1,751.00, GBP 1,116.50, and EUR 1,298.29 per ounce.

Cross Currency Rates
At the open in Asia, gold spiked from $1,746.75/oz to $1,755/oz before being capped at that level and falling back to its opening price. It remained near the $1745/oz mark overnight and this morning in Europe until soon after the London AM Fix ($1,744/oz) when selling commenced again.
Traders may be hesitant to place positions ahead of the Franco-German summit and there may also be some profit taking after the nearly 4% gains seen last week.
Gold will likely be supported this week by the intractable eurozone debt crisis and renewed jitters about Iran which has seen oil rise again today (NYMEX/ WTI at $101.80).

Iran warned yesterday that any move to block its exports would lead to oil at $250 a barrel.
Physical buying continues internationally. Indian gold edged higher this morning following a weaker rupee, and premiums in the physical market steadied after a recent lull in buying. Chinese demand is gradually picking up again ahead of Chinese New Year.
Safe haven demand from Eurozone countries has increased significantly in recent days due to the concerns about euro exposure due to the possible collapse of the single currency.
Speculators, hedge funds and money managers pared their holdings of Comex gold and silver futures and options in the week ended Nov. 29, according to data released Friday by the Commodity Futures Trading Commission (CFTC).
The CFTC data, typically released Friday, were delayed because of the Thanksgiving holiday.
In gold futures and options, 4,207 long positions were cut and 1,249 short positions were cut.
This reduced their net position by 2% to 146,298 long contracts, from 149,256 long contracts a week earlier.
The managed fund net-long position represents around 14.6 million troy ounces of gold.
In Comex silver futures and options, these funds added 110 long contracts and 316 short contracts. This reduced their net long position by 2% to 12,334 contracts, from 12,542 contracts the previous week.
The net silver position represents around 61.6 million troy ounces of silver.
In platinum, 243 long positions were cut and 555 short lots were added, taking the net long position down to 12,952, from 13,750.
In palladium, 64 long lots were cut and 506 short lots were added, reducing the net long position to 5,231 from 5,800.
Volatility in currency markets has increased markedly in recent months and this looks set to continue in the coming weeks as liquidity dries up in the run up to and during Christmas and New Years.
Currency markets have proved even more difficult to predict than usual due to the global debt crisis. News headlines and rumours are causing large swings in the market.
Intervention from governments around the world to weaken their currencies and competitive currency devaluations have surprised markets. Investors can no longer assume that the yen, Swiss franc and the US dollar will be safe havens.
Foreign exchange trading today normally averages £4 trillion (€4.7 trillion) a day, according to the Bank for International Settlements.
2012 Top Trades of BOA – Buy Gold Versus Euro
Gold and the dollar are Bank of America Merrill Lynch’s top currency trades for 2012.
BOA, the second-biggest U.S. bank by assets after JPMorgan Chase & Co., said that investors should buy gold versus the euro as the ECB engages in quantitative easing to contain debt turmoil.

David Woo, global head of rates and currencies in New York at the Bank of America Corp. unit, told clients in research note that “the ECB will be buying more government debt and doing QE, so buy gold against the euro.”
“The second major theme is U.S. fiscal tightening is about to come, and the U.S. economy will slow, and this will be very good for the U.S. dollar.”
“The general theme for the year ahead is pretty negative for the risk environment,” Woo said.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
SILVER 
Silver is trading at $32.60/oz, €24.24/oz and £20.83/oz
PLATINUM GROUP METALS 
Platinum is trading at $1,541.70/oz, palladium at $644.75/oz and rhodium at $1,575/oz.
NEWS
(Reuters)
Gold inches up as key EU summit nears
(Reuters)
Decision time for EU, with euro’s future at stake
(Washington Post)
Oil rises to near $102 a barrel in Asia amid rising Iran tension
(Reuters)
Iran says oil would go over $250 if exports banned
COMMENTARY
(Financial Times)
Are We Heading Back to 1929 – Or the Dark Ages?
(Financial Times)
France and Germany Look Set to Fudge It Yet Again
(Best Bullion)
Laura Gross: Goldbug Defined
(Economic Policy Journal)
Is Your Money Safe at Your Brokerage Firm?
(NY Sun)
Bernanke’s Forgotten Footnote
(ZeroHedge)
No, Dylan Grice Did Not Say Germany’s Unwillingness To Print May Lead To The Rise Of Another Hitler
(Wall Street Journal)
Weighing Loss of Iran’s Oil

Martin Armstrong: The Immediate Outlook for Coordinated Central Bank Intervention

Martin Armstrong discusses the immediate outlook for coordinated central bank currency intervention over the European debt crisis, and confirms that QE Will Continue to Infinity…..AND BEYOND!!!


It is clear that the Sovereign Debt Crisis in Europe is becoming really serious in order to warrant such a public show of trying to flood the system with money. All our political sources in Germany have confirmed that if it is a choice between the failure of the Euro and inflation, there will be no question that the latter will prevail.
The greatest danger here is still the failure to directly address the Sovereign Debt Crisis. This can easily be seen as a failure of the entire system. Once again, there is no substance and this is a dangerous coordinated multi-nation move that only confirms the deepening crisis faced by the global economy as a whole.
Read more below by clicking the PDF

Coordinated Central Bank Intervention

The Immediate Outlook

Pdf_16x16 1 p

SilverDoctors Site Redesign Update

We’d like to update readers on the progress for the SilverDoctors site redesign.  Many of you are aware that the site is currently hosted by Blogger, which has numerous limitations. 
The main purpose for the site redesign of SD is to allow embedded linking, pics, and videos in the comments, as well as a forum and user profiles, so that readers can more easily share information with each other.  SilverDoctors now has nearly 20,000 hits per day, and our readers share a collective wealth of knowledge that far surpasses The Doc’s.  Unfortunately the limitations of Blogger severely limit the abilities of the readers to share this information with each other.
The Doc receives numerous emails daily requesting links to articles, videos, or photos be posted to the site.  The new site will allow you to posts these yourself instantly. 
Without letting too much of the cat out of the bag, the last major reason for a site redesign is The Doc’s dream to launch a precious metals trading platform- which would allow readers to trade gold and silver amongst themselves for fiat (ebay style but with much lower fees), or directly for goods or services. 
The Doc currently still works 60-70 hours/week at the day job in order to support his family, and dedicates his efforts to SilverDoctors basically on a volunteer basis because its what he loves and is passionate about. His dream and goal however is to come up with a way to generate enough revenue to quit working for the man at the day job 70hrs/week, and be able to focus entirely on SD.
The Doc would again like to thank each and every reader who has donated through the “Doc’s Life Support” link, as well as those who have visited and considered SD’s sponsors- your donations are all being put towards the development of the new site which should allow a much greater and more interactive experience for the readers, as well as a vast increase in the wealth of knowledge shared by the readers of SD.
We are currently receiving bids from the techies on the new site development, while we continue to save our coppers from generous donations in order to implement the redesign. 
In the meanwhile, The Doc would like to share several work-arounds for a few of the limitations of Blogger.
Many readers view SD though SilverDoctors.com, but for those who are unaware, the site is actually hosted by blogspot, so the actual URL is http://silverdoctors.blogspot.com/  .  Those who access SD through SilverDoctors.com notice a major limitation- each article’s URL appears to be silverdoctors.com, preventing you from linking to a specific article. If you’ve ever had trouble linking an SD article, its because you’re viewing the site from SilverDoctors.com, which merely redirects you to SilverDoctors.blogspot.com.  So until the new site rollout, use the silverdoctors.blogspot.com address to link to individual articles.

Many readers have also sent in complaints that website links can’t be posted as a click-able link.  Again, this is a major blogger limitation, but for those who would really like to embed a link, it will embed if you used the html coding:

a href=”http://www.example.com” title=”Link to example website”>text that turns into the link

*Please not that you must add a < to the beginning, and a  >   to the end.  (If I add them it will embed as a link rather than demonstrating the code.  Simply paste your link in the place of the http://www.example.com and replace the example text with your description for your link to create an embedded, click-able link.
Annoying we know, but this is the only way to post a clickable link until the site redesign is rolled out.  Curses to blogger!

Finally, if you have an idea for a great improvement to the new site, feel free to post it in the comments section of the post, or email it to The Doc @  silverdoctors@gmail.com .

Thanks again so much to all our readers for your support, donations, and patience as we continue to work towards rolling out the new and improved site!

-Doc

Nouriel Roubini: Gold Standard Fans Are ‘Lunatics and Hacks’

Roubini reveals he has no greater understanding of economics than The Bernank, and is much less eloquent with his word selection to boot.  This headline whore has devolved into a full-fledged stooge of the MSM.
Yup, you’re right Nouriel, it was gold- real physical money, that was the sole cause of the Great Depression.  Just imaging how great the 30′s could have been if they had thought of QE like the Weimar Germans!

Those making public calls for a return to the gold standard are a bunch of lunatics and hacks who are doing nothing but calling for a repeat of the Great Depression, says New York University Nouriel Roubini.
Loose monetary policies have done little to lower unemployment rates and have many saying the U.S. should return to the gold standard, which pegs the value of the dollar to gold.
Supporters say a gold standard, abandoned in the 20th Century, would force the government to live within its means and end inflationary pressures that come with expansive monetary policy.

“That’s total nonsense.” Roubini tells Yahoo’s The Daily Ticker, calling the gold bugs who support a return to the gold standard a “bunch of lunatics and hacks.”
A gold standard prevents authorities from stimulating the economy when needed.

One of the major causes of the Great Depression was the existence of the gold standard,” Roubini says.
By limiting the amount of money authorities can put into circulation, authorities render themselves powerless to act as a lender of last resort when needed.
“They restrained the ability of Central Banks to provide lender-of-last-resort support to their banks, created tight money — it created bank runs, and lead eventually to the Great Depression,”

Gerald Celente: It’s FASCIST! Can’t You See It?

SGT has released a riveting interview with Gerald Celente who states he’s taking the rest of his money (whatever has not already been confiscated by MF Global/ the CME) offshore, as the USofA has become FASCIST.


Ron Paul: ‘I’m the Flavor of the Decade!’

ThumbnailRon Paul appeared on CNN’s State of the Union this morning, with CNN actually discussing a new poll showing Paul as the #2 candidate, with the anchor actually busting out the W word- Paul’s chances at actually WINNING the Republican nomination.
With the Herman out of the running, is the MSM’s blacklisting of Paul starting to change as poll after poll reveals that Paul is a top-tier candidate?
Paul discusses the void left by Herman Cain’s departure, as well as how Paul’s campaign can gain the votes of Mr. Cain’s supporters.

We’ve had the flavors of the month up and down so far in this campaign, I’d like to think of myself as the flavor of the decade!


Wall St. On the Tundra

Michael Lewis documents the events that led to the debt buildup and collapse of the 300,000 strong nation of Iceland as well as the response of its citizens in the aftermath of the collapse.  In the days and months after Iceland’s collapse in October of 2008, Icelanders resorted to hoarding food, cash, and PM’s, and intentionally destroying luxury items such as new Range Rovers for the insurance money.
An excellent piece to review for those wondering what the rest of Europe and the US have to look forward to when TSHTF.

Wall Street on the Tundra by Michael Lewis

Iran: Oil to $250 if Exports Banned

Iran threatened Sunday that oil will rocket to $250/ barrel if its exports are banned by the US/ NATO.
Perhaps Ahmadinejad doesn’t realize that a sudden spike to $250/barrel & $10/gallon gasoline would provide the perfect cover for the West to blame the imminent global debt collapse on Iran and the sudden spike in oil prices.  Nothing like having an Arab scapegoat to misdirect the sheople’s coming rage when the western debt/fiat system collapses.  With over 100 million gun owners in America, you think the banksters won’t do everything in their power to prevent the sheople from waking up to their raping and pillaging?

Reuters – Iran warned the West on Sunday any move to block its oil exports would more than double crude prices with devastating consequences on a fragile global economy.
“As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel,” Foreign Ministry spokesman Ramin Mehmanparast said in a newspaper interview.

The comments come as Iran strives to contain international reaction to the storming of the British embassy last week, a move which drew immediate condemnation from around the world and may galvanize support for tougher action against Tehran.
Washington and EU countries were already discussing measures to restrict oil exports after the United Nations nuclear watchdog issued a report in November with what it said was evidence that Tehran had worked on designing an atom bomb.
Iran says its nuclear program is entirely peaceful.
The U.S. Senate voted on Thursday to penalize foreign financial institutions that do business with Iran’s central bank
– which takes payment for the 2.6 million barrels Iran exports a day. The European Union is considering a ban — already in place in the United States — on Iranian oil imports.
So far neither Washington nor Brussels has finalized its move against the oil trade or the central bank amid fears of the possible impact on the global economy of restricting oil flows from the world’s fifth biggest exporter.
Read more:

MF Global Account Holder: Look for the Continued Implosion of the Futures Market

The loss of confidence in the integrity of the futures market is increasing at a rapid pace.  Each and every one of the 100,000 customers affected by MF Global will likely remove their funds from the system if/when they are ever made whole, and are also likely telling every one who will listen to GET THE HELL OUT OF ALL PAPER ASSETS NOW!

From an MF Global account holder:

No you cannot win.  If you are fortunate enough to win, along will come some bunch of bankster thugs and steal your money, as I have experienced recently with the MF Global fiasco.

Don’t know if you have been following this, but contrary to all laws and rules, Obama’s buddy Jon Corzine and his thugs raided all of the customer segregated cash at MF Global to cover their a**hole super-leveraged $6.3 billion bet on believe it or not European bonds (Greece, Ireland, Portugal, Italy and Spain).
The funds were there one day, and in a flurry of madness they pilfered the accounts of over 100,000 customers to post more collateral on their bets (undoubtedly with JP Morgan) and then filed bankruptcy in less than a week.  Now upwards of $1.2 billion (out of $5.4B) of customer “supposedly segregated” funds are missing (f*you #1).
This has been in limbo for over a month now.  I got 11% of my money when the whores transferred mine and others’ open positions to a new account, but allowed for only 60% of the required margin to be transferred, forcing everyone to immediately be under water (while they have a pile of inaccessible cash tied up by the trustee), so they either liquidated a bunch of positions or had to put up more margin. (f* you #2)
The other 89% has been locked up in bankruptcy court until they can figure things out.  Supposedly they will distribute enough so you have recovered 65% in the next couple of weeks and a hearing is scheduled on this expedited motion next week; that is, unless JPM tries to screw us out of that as they hold a large debt of MFG and have been appointed to the creditors committee by the bankruptcy judge (f* you #3).
The judge appointed them to the creditors committee but denied the request of an organization called the Commodity Customers Coalition, representing over 8000 screwed customers, including me (f* you #4).
Assuming that JPM cannot block this (they shouldn’t be able too–after all it is the customer’s money), then that will leave 35% unaccounted for.  Now the issue becomes do we have a super priority over them or are those sleezebags going to try to get their loans, lent for gambling purposes to MFG, on the same level as ours–they will probably try this and that will be F* you #5.   I could write a book on this and easily exceed 50 f* you moments.
This is the problem with the whole system.  The concept of customer segregated accounts has been in existence for over 100 years, is mandated by law, and there is supposed to be a wall sequestered around them so that the Broker can gamble all he wants with his own money, but he is not allowed to touch the customer’s funds. The CFTC which is supposed to monitor compliance with the segregation requirement has outsourced this activity to the exchange (CME) and in fact they were in the week before and gave them a clean bill of health.

You cannot operate a futures market unless customers post cash collateral;  No one will post cash collateral if they must fear that their funds will be stolen; ergo you cannot operate a futures market.

Look for the continued implosion of this industry because the system cannot straighten this out, and for a run on such institutions to start any day.  Many of the people affected are farmers and ranchers and small businessmen.
I have not heard boo from Obama, and quite frankly have given up on him.  He is nothing more than a shill for the banksters, and surrounds himself with advisers from Goldman Sachs and JPM.  Unbelievable that Eric Holder (another incompetent crony) has not to this day prosecuted one criminal from the 2008 meltdown, so the banksters feel they can rape and pillage with impunity.
At this point I have to hold my nose and rely on Fox and the Republicans to rat this story out, which they are starting to do, and will do so not for the good of the markets, but rather for political purposes–to paint Obama as a buddy of that thief Corzine, who remains in hiding.
Just google MF Global for daily coverage on this soap opera.

ECB Lines Up €1 Trillion Rescue for Italy/ Eurozone

ECB’s Mid-Line Printer

The Sunday Times reported today that new Italian PM and Bilderberg member Mario Draghi is nearing a deal this weekend with the ECB for a €1 trillion central back purchase of Italian bonds.  €1 trillion should buy Europe another few weeks until its time to break out the Binford Ultra 8,000 model.


A €1 trillion cash injection for the troubled eurozone economy is being prepared by the European Central Bank ahead of a series of key crisis summits this week.
Mario Draghi, the new president of the ECB, is said to be working on a plan this weekend which would pave the way for a colossal market intervention in European sovereign bonds.
The plan would only be executed if Europe’s leaders reach agreement on a broader political reform of the currency bloc — imposing strict budget controls on nations struggling to control their state finances.
Angela Merkel, the German chancellor, and Nicolas Sarkozy, the French president, are due to meet in Paris tomorrow ahead of a European Union summit in Brussels on Friday.
Details of an expanded role for the ECB in controlling the crisis could be unveiled at its rate-setting meeting on Thursday.
It is understood that the ECB is willing to more than double its existing bond-buying efforts if it is protected from any possible losses. A plan has been discussed that would see Europe’s bailout fund, the European Financial Stability Facility, insure the central bank against losses from the bonds.
Some of the cash could come from the International Monetary Fund (IMF), which is said to be willing to provide about €200 billion (£170 billion) to help resolve the crisis.
The ECB’s role would be restricted to stabilising prices in Europe’s bond markets — preventing the yields on Spanish or Italian debt from spiralling out of control.
The intervention would be presented as a stop-gap measure to ease market pressures while the eurozone transitions towards closer fiscal union.
Although Merkel has previously resisted an increased role for the ECB, she is said to be willing to accept a ramped-up bond-buying programme on these terms.

Read more: