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Dollar Drops To Record Low Against Swiss Franc

Tyler Durden's picture




 

It may not be gold, but it is the closest substitute to the shiny metal in the fiat space (where comparative devaluation is the name of the game once again). While the Swiss Franc has yet to retest recent lows against the euro, the USDCHF just touched an all time record low price of 0.8287, as today's theme is once again wholesale shorting of the funding (note, not reserve) currency. In the meantime Swiss exporters continue to pretend that margin compression is something best left for the comic books. And after all, Tim Geithner made it all too clear at all recent G8 meetings that it is every country's patriotic duty to welcome DXY 0 with open arms.

 

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Tue, 06/28/2011 - 10:23 | 1408625 Bodhi
Bodhi's picture

Time to cancel that trip to Zurich.  I can't afford a $20 Le Big Mac.

Tue, 06/28/2011 - 10:27 | 1408664 uno
uno's picture

Just came back from St. Thomas VI, talk about a rip off.  Restaurant prices are 2 to 3 times the price in the US, even for fish meals.  Also noticed the cab drivers there make incredible money (cash and each cab driver is an independant business), many only work 7 months a year.

Tue, 06/28/2011 - 13:48 | 1409407 Hugh G Rection
Hugh G Rection's picture

Went to Geneva a few years back.  Beautiful, except for the bums mainlining heroin in the park, and the $300 dinner tab at Pizza Hut.

Tue, 06/28/2011 - 11:21 | 1408914 Overflow-admin
Overflow-admin's picture

Big Mac Menu + large frites & 5dl beverage + cheeseburger + 2x ketchup = $18.85 @ 0.8275.

 

So much for the EUR/CHF too... last all-time low 1.1803.

Tue, 06/28/2011 - 14:10 | 1409483 Max Hunter
Max Hunter's picture

I about shit a brick the first time I found out they charge for ketchup in Europe...

I went to this restaurant regularly in Germany. 3-5 times a week.. I like to drink water.. I asked her for water to drink with my meal.. She said she didn't have any.. I said, give me tap water, I don't care.. I'm sick of soda and carbonated drinks.. I can't take it anymore.. She said okay and filled my water glass from the tap. Promptly added 1.20 Euro to my bill.. I never went back.. F'n Euro trash.. LOL 

Tue, 06/28/2011 - 10:23 | 1408626 White.Star.Line
White.Star.Line's picture

"Comparitive fiat devaluation" is a key concept when following currency moves these days.

Currencies today are like icebergs bobbing up and down in the ocean.
Of course, an ocean that has an open drain at the bottom of it.

Tue, 06/28/2011 - 10:41 | 1408708 SWRichmond
SWRichmond's picture

"Comparitive fiat devaluation" is a key concept when following currency moves these days.

Yes, and it is being pursued as an obfuscation.  Watch the "comparative" rates and not their absolute buying power, which has been collapsing across the board.  Thus, the focus on USDX and not on grocery prices.

Tue, 06/28/2011 - 11:28 | 1408932 Overflow-admin
Overflow-admin's picture

Yeah we have our puppets master too...

 

In plain text to unjunk you

Hildebrand stands by Switzerland’s euro policy The president of the Swiss National Bank (SNB), Philipp Hildebrand, has defended the bank’s interventions to buy euros to try to counter the rise of the Swiss franc.

Hildebrand told a Club of Rome Forum in Zurich on Thursday night that the interventions between March 2009 and June 2010 were necessary at the time to combat the risk of deflation.

 

He added that decisions about such measures were solely based on the central bank’s mandate to ensure price stability.
 
The SNB announced last week it had made a loss in 2009 of SFr26 billion ($27 billion) on its foreign currency positions.
 
“We have always emphasised that the SNB’s goal is not to make a profit… or even speculate,” Hildebrand said
 
In a related development the former chief economist of the SNB, Ulrich Kohli, described buying so many euros as a “fiasco”. He told the Friday edition of the Basler Zeitung newspaper that the expected loss of the bank for 2010 of SFr21 billion was of historic proportions and unnecessary.
 
“That interventions are generally of no use is really nothing new,” he said.
 
He said the SNB had lost some credibility as a result. “It is wounded, its balance sheet weakened and it hardly has a possibility to do anything [about it].”

 

swissinfo.ch and agencies

Tue, 06/28/2011 - 11:25 | 1408936 JW n FL
JW n FL's picture

to steal from a nation? year after year.. the Swiss must be very proud.

Tue, 06/28/2011 - 10:20 | 1408629 HelluvaEngineer
HelluvaEngineer's picture

And I’m proud to be and American,
where at least I know I’m free.
And I wont forget the men who died,
who gave that right to me.

Tue, 06/28/2011 - 10:41 | 1408709 HelluvaEngineer
HelluvaEngineer's picture

The junkers hate our freedoms.

Tue, 06/28/2011 - 10:47 | 1408737 Ese Pinche
Ese Pinche's picture

No.. the junkers understand that, sadly, the people who have died for this country (the US) have died for profits... not freedoms.  This country is finally starting to understand this... it is devastating... but its red pill time.

Tue, 06/28/2011 - 10:47 | 1408762 Reptil
Reptil's picture

It's approaching behaviour expected of three year olds.

Why junk raw information? Not that I care. I'm just surprised.

Tue, 06/28/2011 - 17:03 | 1410014 FeralSerf
FeralSerf's picture

The Bushes hated your freedoms too, so they invented the DHS and TSA.

Tue, 06/28/2011 - 10:47 | 1408757 fuu
fuu's picture

You are not free, but thanks for pasting those propagandist lyrics.

Tue, 06/28/2011 - 13:56 | 1409421 Hugh G Rection
Hugh G Rection's picture

And I'm proud to be an American,

where at least I know I'm a battery.

And I wont forget the men who died,

to enrich those who enslave me.

Tue, 06/28/2011 - 22:28 | 1410577 pelican
pelican's picture

I hate that song.  I heard it a million time while on active duty.  I wouldn't be surprised if it was produced by a propaganda unit.

Tue, 06/28/2011 - 10:25 | 1408632 baby_BLYTHE
baby_BLYTHE's picture

Investors are rightfully fearing another World War.

And just like the last time, the Swiss will not get involved in the West's military adventurism. Rightfully so. Great country, great people.

Tue, 06/28/2011 - 10:29 | 1408671 gdogus erectus
gdogus erectus's picture

Yeah - remember in grade school that we were taught that Hitler didn't invade Switzerland because he honored their "neutrality"?  Yeah, that and the mandatory assault rifle and 1000 rounds of ammo in every citizen's closet.  I think they missed that part in class.

Tue, 06/28/2011 - 10:36 | 1408686 fuu
fuu's picture

Why invade when they were giving him the money from the bank accounts of the people being murdered in the ovens?

Tue, 06/28/2011 - 10:38 | 1408715 baby_BLYTHE
baby_BLYTHE's picture

no one was murdered in any oven. The bodies were cremated after death.

Gas chambers were never used during WWII contrary to revisionist history.

I have visited Mauthausen in Austria when I was a bit younger. Spoke to several on site historians including a few survivors themselves, no Gas chambers were used in any of the camps

Tue, 06/28/2011 - 10:49 | 1408745 fuu
fuu's picture

Care to comment on the expatriation of funds from the bank accounts of the murdered no matter how they were murdered?

Tue, 06/28/2011 - 10:57 | 1408795 baby_BLYTHE
baby_BLYTHE's picture

The Swiss treated the Jewish money just like any other despositors including gentile survivors of the work camps.

the late Dr. William Pierce examined this issue at the time and it turned out to just be another case of the Jews screaming foul and gettin pusy to get there way.

We've examined some of these tricks of theirs, and we've explored some of their specific lies about the "Holocaust," but the question remains: Why do they do it? Why do they push the "Holocaust" business so hard?

 

We know the answer to this question now. We understand that they push the "Holocaust" for two reasons: first, because they make lots and lots of money from it; and second, because it protects them from criticism and enables them to get away with the most outrageous behavior, behavior that would not be tolerated in any other people. They have just collected $250 million in cold, hard cash from the Swiss in blackmail money: money which the Swiss gave to them not because there was the slightest evidence that the Jews were entitled to any of it, but simply to avoid a boycott. Now, the Jews are aiming for $7 billion more from the Swiss the same way.

 

Anyone else that tried a stunt like that would  wind up in prison for extortion! The Swiss apologize, make good with the despositors money, but just as it always is, it is never enough.

Tue, 06/28/2011 - 11:04 | 1408810 sun tzu
sun tzu's picture

Jesse Jackson and the NAACP get away with it too. 

Tue, 06/28/2011 - 11:29 | 1408955 JW n FL
JW n FL's picture

You are so sweet.. Sweeheart they have to buy Congressmen and Senators and that shit aint cheap! our whores are the most expensive in the World dont chya' know?

 

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and lets ALL! NOT!! FORGET!!!

http://www.rachelcorrie.org/

 

http://www.youtube.com/watch?v=96kIhJgZBV4

Tue, 06/28/2011 - 23:06 | 1410633 FeralSerf
FeralSerf's picture

I don't know that it's because they're more expensive than the whores in the rest of the world as much as they're so fucking many of them.

Tue, 06/28/2011 - 11:31 | 1408965 fuu
fuu's picture

Here you go: http://en.wikipedia.org/wiki/Bergier_Commission

 

In the words of the Swiss's own investigation:

"...diplomatic practice increasingly came into line with the ethnic «völkisch» criteria adopted by the Nazi state, an approach which sharply conflicted with the constitutional equality enjoyed by Jews in Switzerland since 1874"

The commission also addressed the issue of the use of slave and forced labor in Swiss-owned firms and concluded: "that the figure quoted in the media – a total of over 11,000 forced labourers and prisoners of war employed in Swiss subsidiary companies throughout the Reich – is likely to be on the low side."

The commission examined the role of the Swiss diplomatic service in protecting Swiss-owned property held in the Reich and concluded that a double standard was applied: whereas international law was strictly applied vis-a-vis Swiss property in the Soviet Union, Swiss authorities, "increasingly favoured the so-called theory of equal treatment, i.e., that if Germany was discriminating against its own Jewish citizens it was hardly possible to legally contest its equally harsh treatment of foreign Jews living in Germany."

Swiss insurance companies had sold policies to Germans for many years. The German government seized policies held by German Jews and cashed them in with the Swiss companies, according to German laws passed by the Nazi government. After the war, the Swiss companies mainly refused to redeem policies held by holocaust victims and their heirs, arguing that the amounts had already been paid out according to German law. However, the commission concluded, "There is equally good reason to believe that not all those who were persecuted registered their policies with the Nazi authorities in accordance with the directives of 1938. It is therefore probable that a considerable number of policies belonging to Jews who remained in Germany were never paid out to those authorities."[

 

 

Tue, 06/28/2011 - 11:02 | 1408805 sun tzu
sun tzu's picture

The US Gov is throwing people in prison and demanding the Swiss hand over their bank accounts. did the Swiss have a choice? Hand over a dead person's bank accounts or face invasion. I'm sure you would have opted for the invasion in order to protect the dead person's money.

Tue, 06/28/2011 - 12:42 | 1409200 fuu
fuu's picture

Everyone has a choice. Sometimes the right choice is harsh and gets you killed. It is still the correct choice.

Wed, 06/29/2011 - 03:36 | 1410892 Urban Redneck
Urban Redneck's picture

The US chose to stay out of the war while nation after nation fell to the Nazis.  While Switzerland remained neutral after German attack, the US caved on its neutrality the day after Pearl Harbor.  Something isn't the wrong choice one day and then the right choice the next day. 

Switzerland had chosen neutrality several wars before WW2.  Continued neutrality is actually not an easy choice, especially since the US wasn't offering to supply the food and energy that the nation needed. 

The US also had a choice not to bomb Switzerland (ironically while Dulles and OSS were running intelligence against Germany in Switzerland).  I think you notion of the right choice is a rather subjective. 

Tue, 06/28/2011 - 10:54 | 1408787 Reptil
Reptil's picture

Eeeeh yes they were. Not all camps but for certain in Auschwitz.

This documentary is fairly accurate, not entirely complete, but a good primer on the subject. (It's not happy happy stuff so if you need a "pick me up" go watch something else.)

http://www.youtube.com/watch?v=a6jnawYwm3E

If you got any publication that says different, please post? If not, please STFU?

xoxox

 

Tue, 06/28/2011 - 11:08 | 1408844 baby_BLYTHE
baby_BLYTHE's picture

There are just as many, if not more, documentaries exposing the gas chamber hoax.

You mention Auschwitz, Even the Auschwitz museum director speaks out against the lie

In a dramatic and unprecedented videotaped interview, Dr. Franciszek Piper, senior curator and director of archives of the Auschwitz State Museum admitted on camera that 'Krema 1,' the alleged 'homicidal gas chamber' shown off to hundreds of thousands of tourists every year at the Auschwitz main camp, was, in fact, fabricated after the war by the Soviet Union -apparently on the direct orders of Josef Stalin.
 
What Piper said - in effect and on camera - was that the explosive 1988 Leuchter Report was correct: no homicidal gassings took place in the buildings designated as 'homicidal gas chambers' at Auschwitz.
http://www.rense.com/general53/aauz.htm
Besides "eye witness" testimony, there is no evidence that gas chambers were ever used to execute prisoners.
Tue, 06/28/2011 - 11:11 | 1408856 pazmaker
pazmaker's picture

baby.. you need to realize that your comments on here need to connect...  A while back you posted that you were a young 20 something that was feeling deception and despair and now your a seasoned historian who visited Mauthausen in Austria when you were younger?   How old were you when you visited???   10?

Tue, 06/28/2011 - 11:19 | 1408900 baby_BLYTHE
baby_BLYTHE's picture

I don't claim to be any expert. I have been a history buff ever since high school which was when I visited Austria with my school's german club. I was fifteen then, so a little over 5 years ago.

Of course I feel despair, how could anyone not with total economic collapse looming and another World War?

 

Tue, 06/28/2011 - 11:54 | 1409057 kito
kito's picture

with regards to your nazi era history, i believe you to be more of a history buff..oon

Tue, 06/28/2011 - 14:08 | 1409458 baby_BLYTHE
baby_BLYTHE's picture

the Crest White strips must be permeating into your brain causing a disruption of your comprehension ability

Tue, 06/28/2011 - 11:32 | 1408968 JW n FL
JW n FL's picture
by pazmaker
on Tue, 06/28/2011 - 11:11
#1408856

 

baby.. you need to realize that your comments on here need to connect...  A while back you posted that you were a young 20 something that was feeling deception and despair and now your a seasoned historian who visited Mauthausen in Austria when you were younger?   How old were you when you visited???   10?

*************************************************************

If you can NOT!!! REFUTE!!!! the FACTS!!!!! then attack the person.. how very novel.

Tue, 06/28/2011 - 11:50 | 1409025 falak pema
falak pema's picture

BB:

I met people from AUswitzch who cleaned out the bodies from the gas chambers; they were jewish young workers of the camp, numbered and all who miraculously survived. They saw thousands coming out as corpses from those gas chambers. We talked over it when playing tennis. This was in 1965...I was in university then. I believed them, a man and a woman of polish origin living in London. 

This is NOT an exceptional tale. Thousands who have known these types of people like me would tell it. The only problem is that those who survived don't want to talk about it. Maybe they want to relive their lives, forget the horror, understandable, or else, they feel ashamed to be alive while their family members died...who knows...its their terrible secret. But it was real...

Tue, 06/28/2011 - 14:37 | 1409471 pazmaker
pazmaker's picture

Jw,   I did not attack the person.  If you think that, then you have very thin skin.  I attacked the person's credibility.  There is a difference.  I've seen inconsitencies in baby blythe post...for example he/she started posting asking many questions stating that he she was young naive not very knowledgable.....and now he/she seems to be an expert on everyhting!   So I question the credibility of this person and question if they are who they claim to be.

Tue, 06/28/2011 - 14:36 | 1409542 DosZap
DosZap's picture

What were they used for?,killing flies.

How were they murdered, so they could just cremate them?

Starved em all?.Sorry, shit doesn't wash..

Would take far too long to starve that many people.

I agree, the gas chambers were not used on the survivors.

Makes sense.

Tue, 06/28/2011 - 11:21 | 1408894 gaoptimize
gaoptimize's picture

How old do their children have to be before they get their own?  I'm thinking I can use that argument with the wife to gat another soon.  (keeping up with the Swiss and all).

Tue, 06/28/2011 - 11:52 | 1409032 Confused
Confused's picture

They were more valuable as a "neutral" country. He sold them gold for Francs. Which Germany then used to buy things on the world market. Additionally, the Swiss allowed trains to pass through without searching them.

Perhaps someone can correct me if I'm wrong.

Tue, 06/28/2011 - 12:20 | 1409161 sun tzu
sun tzu's picture

You're wrong. The Swiss did not allow any military supplies to pass through their country. What were the Germans buying on the world market? They were blockaded by the Royal Navy. By 1943 the only neutral country they could trade with for was Sweden and Spain. Sweden had some matels that could be used in war. Spain didn't have much. Switzerland was smeared after the war in order to shame them into war reparations. I don't blame the Swiss for what they did during the war. They were a tiny country surrounded by Hitler and Mussolini. Either they do their best to stay neutral or they are crushed by the Nazis. 

Tue, 06/28/2011 - 14:35 | 1409550 DosZap
DosZap's picture

Yes, thje Swiss elite are so WONDERFUL.

So great in fact that jews had to sue them to get their families stolen wealth back from the banks,, that the nazi's deposited there..........

Great job.The sorry bstds denied it, for a long time..........till they were proven liars.

Wed, 06/29/2011 - 03:53 | 1410901 Urban Redneck
Urban Redneck's picture

And the Nazi high command was calling the Swiss "Mountain Jews" all through the war.

Then Volker (ironically a German) stirs the "missing gold" pot while trying to get Switzerland off the gold standard.

Switzerland actually has privacy laws, unlike the US.  Again, the US has fucked up its banking and budget, and again the US wants Switzerland to compromise its tradition of privacy.  Just because the US congress erodes the false notions of US privacy at whim, through legislation like HIPPA and the Patriot Act, doesn't mean it is a good idea. 

Tue, 06/28/2011 - 10:26 | 1408638 Internet Tough Guy
Internet Tough Guy's picture

DXYland blues

Tue, 06/28/2011 - 10:24 | 1408645 Vinny
Vinny's picture

There are still ways to travel through Switzerland on the cheap. Lots of ice and snow will provide you with drinkable water. Then look for some frozen hikers in the mountains: edible source of protein. Just show them what American ingenuity is all about.

Tue, 06/28/2011 - 11:39 | 1408986 JW n FL
JW n FL's picture

or one could be a lil more Roman in their vacation approach and just conquer any and all.. pay as you go or they pay as you go as it where.

Tue, 06/28/2011 - 10:24 | 1408646 Boston
Boston's picture

QE2 ends in a couple of days.  USDCHF will turn around soon.

Tue, 06/28/2011 - 10:34 | 1408673 SheepDog-One
SheepDog-One's picture

Nothing at all solved, everything still as bankrupt as ever.

Pulling the plugs on the life support patient does not mean he will then jump up and run the NYC marathon.

Hey by the way whoever is junking every post today please get a life.

Tue, 06/28/2011 - 10:32 | 1408690 hamurobby
hamurobby's picture

Since its super ultra extremely over sold, might be a good trade, least thats why Im guessing Tyler pointed it out.

Tue, 06/28/2011 - 10:38 | 1408700 qussl3
qussl3's picture

Curious reasoning, care to share?

The panic in CHF seems to be driven by a stealth bank run in europe, dont see what will change about that come Jun30.

Tue, 06/28/2011 - 10:26 | 1408659 Vinny
Vinny's picture

We should all move there and sign up for the Swiss version of welfare.

Tue, 06/28/2011 - 10:34 | 1408698 fredquimby
fredquimby's picture

We don't just let anyone in you know...

http://t2.gstatic.com/images?q=tbn:ANd9GcQQs_1iSzxjc2bQ585fN32pTnmEX_f3K...

But if they do let you in....you need to work here for two years minimum before you get unemployment aid (I hate to say benefits as it makes it sound like a good thing).

Tue, 06/28/2011 - 10:27 | 1408663 White.Star.Line
White.Star.Line's picture

Wow.
Are we on auto-junk mode now?

Tue, 06/28/2011 - 10:34 | 1408679 Sambo
Sambo's picture

People have started throwing away their cars you know...

Tue, 06/28/2011 - 10:35 | 1408684 gdogus erectus
gdogus erectus's picture

Yeah, it's great.  Now when you actually get junked, no one gives a shit!  Well, I guess the auto junk algo's aren't sophisticated enough.  Give it some time. 

Tue, 06/28/2011 - 10:33 | 1408667 Franken_Stein
Franken_Stein's picture

 

Presenting to you Zerohedge readers the guy partially responsible for and at least condoning the silver and gold price manipulation at CME group and therefore supporing the whole crappy and failed international fiat ponzi scheme.

 

Self-proclaimed "financial market innovator, writer, lecturer and international authority on futures markets" Leo Melamed(ovich).

 

He's sharing a common heritage with Bernard L. Madoff, George Soros and L. Blankfein.

Too bad he isn't sharing a common future with Madoff, too, i.e. behind bars.

 

It certainly would have been better if these gentlemen and their ancestors had stayed in Eastern Europe.

The world and especially the U.S. would have been spared a lot of pain.

 

No wonder the U.S. is going tits up when it is harboring these kinds of "individuals".

 

http://www.leomelamed.com/

 

Financial innovation is as useful as a pile of dogshit on the sidewalk.

No real value is created. It's just a rip-off and a fake illusion of paper wealth.

 

Tue, 06/28/2011 - 10:34 | 1408694 Sambo
Sambo's picture

I agree. Financial innovation is like giving a blow torch to a four year old living in a wax house.

Tue, 06/28/2011 - 10:32 | 1408669 kito
kito's picture

yes, the end of monetary expansion has arrived. the dollar's coming strength will reflect that. bernanke will continue to roll over its paper to keep people feeling safe, but that's it for a while.

Tue, 06/28/2011 - 10:31 | 1408683 baby_BLYTHE
baby_BLYTHE's picture

what makes you so confident the dollar will see such a rally?

If what you say comes to fruition, Equities will get whacked which will only hasten the arrival of QE3

Tue, 06/28/2011 - 10:44 | 1408729 qussl3
qussl3's picture

Funky dollar liquidity created by the QEs went chasing other assets, often in other denominations.

Crash that confidence and that same funky liquidity has to come running back.

Couple that with rushing for the exits at the same time, and thin conditions you get one mother of a squeeze.

Much fun.

Well, thats my theory at least lol.

YMMV.

Tue, 06/28/2011 - 11:16 | 1408862 hamurobby
hamurobby's picture

Add to that, an emergency funding event (qe) in the Euro, and it may be a grizzly bear hug type squeeze. Its worth a good size bet in Sept 17 UUP calls in my opinion.

Tue, 06/28/2011 - 10:35 | 1408685 SheepDog-One
SheepDog-One's picture

LOL, in a world where markets demand an $8 Billion free cash injection daily, you cant just end it and believe it just chugs along smoothly.

Tue, 06/28/2011 - 11:03 | 1408823 kito
kito's picture

things are clearly not chugging along smoothly. however, fed balance sheet will not expand for the foreseeable future. there will be plenty of demand for our bonds, as evidenced by low yields. corporate earnings have not fallen off a cliff. nike just reported increased sales in north america, with gross margins slightly down. mixed economic news will continue for several years to come. 

Tue, 06/28/2011 - 11:14 | 1408855 Greeny
Greeny's picture

"fed balance sheet will not expand for the foreseeable future"

On that part I agree only if your "foreseeable future" means

1-2 month.. Who's gonna fund 14 trillion Debt are you kidding?

For Foreseeable future I see Fed continue to expand balance sheet

if Debt stays at the same levels. Dollar will drop even lower.

I think QE3 already going on.. If not, FED will not survive without

it more than 2 month.

Tue, 06/28/2011 - 11:22 | 1408898 kito
kito's picture

minimum 6-8 months without expansion. if stocks continue to hold, which seems likely, and unemployment stays in this range, also likely, fed will not step in.  

Tue, 06/28/2011 - 10:43 | 1408720 Greeny
Greeny's picture

Swiss Frank worth nothing internally in Swiss. Basically

shot of Vodka cost 8 Swiss Franks in Cafe, maybe more now,

decent shoes = 500 Francs, the ones you can buy in USA

for $100.. In 70's USD buys 4 Swiss Franks, Swissy got

5 Swiss Franks as a Coin. If you compare Swiss Frank buying

power in Switzerland to Dollar buying power in USA I'd say

1 Swiss Frank should worth around 0.25-0.50 American cents

I hope those monkeys choke on that Heavy weighted Swiss

Franc and their 2 pound Rolex watches :))

Who going to pay double for their import? Absurd.

Tue, 06/28/2011 - 10:44 | 1408741 qussl3
qussl3's picture

The smarmy chinese robber barons are propping it all up.

When you can take 100s of millions in loans with no obligation to pay it back or the remotest chance of being held responsible, spending does tend to get rather ostentatious.

Logic implies that the CHF is just whacked out but the insane chinese printing system will keep this cuckoo show on longer than we can remain solvent.

Tue, 06/28/2011 - 11:17 | 1408891 fredquimby
fredquimby's picture

A shot costs 5 francs in most places.

Last pair of nice shoes I bought, were frikkin amazing hand stitched Italian brogues, by far the nicest shoes I have ever owned....450chf.

Rolex is sooo passe dahrling. We all have Polimaster's now you know.

Tue, 06/28/2011 - 14:18 | 1409500 zuuuueri
zuuuueri's picture

switzerland is expensive, yes. not only on the supply side, since so much of the country is basically a big cartel (owned by..... the banks! who else!), but also on the demand side- there is so much %@#%ing money in this country that it pushes prices up by sheer gravitational distortion. 

BUT

at the same time.. i notice prices here have not risen anywhere near as fast as elsewhere, in nominal local bucks of the realm, i notice that taxes here go down sometimes as well as up (it's rare, true, but it does occasionally happen!), and the fiver coin was around for a long long time, is not because the franc was so weak, but rather, because they remained on the latin monetary union coinage standard until.. 1967. then in 68 they went to shit metal like everyone else, but kept the same shapes and sizes and dies.

 

Tue, 06/28/2011 - 23:10 | 1410648 FeralSerf
FeralSerf's picture

I tend to think the Swiss sell more drugs than watches now in dollar terms.  The margins on drugs are much higher.  Then there's the financial "services". . .    How much do they make for warehousing OPM?  The expenses can't be much.

Tue, 06/28/2011 - 10:49 | 1408749 SparkySC
SparkySC's picture

Didn't the Swiss sell off a huge chunk of their bullion years ago and their currency isn't backed by the Gold people believe. It's a misperception?

 

Or am I incorrect?

 

 

Tue, 06/28/2011 - 11:05 | 1408830 Greeny
Greeny's picture

Swiss Franks backed up by Rolex :)

There is no paper currency backed up by Gold

on Entire Planed.. And perhaps if you want to backed up

any of them, then $100, for example, will now represents about

0.0000000001 oz of Gold Or even less.

All Gold in the world can be placed on

the Tennis Court, compare that to millions of tons of paper

currencies.

Tue, 06/28/2011 - 14:21 | 1409506 zuuuueri
zuuuueri's picture

well.. the US Dollar is backed by lead and uranium.. 

 

Tue, 06/28/2011 - 13:51 | 1409402 Buckaroo Banzai
Buckaroo Banzai's picture

1) Yes the Swiss sold off a big chunk their gold 10 or 15 years ago.

2) No, the Swiss Franc is not *officially* backed by gold

However... there is more than enough gold (at current gold prices) in the Swiss national vaults to cover all the fiat francs in existence. Or at least there was the last time I checked, which was back when gold was ~$700/oz.

Tue, 06/28/2011 - 10:54 | 1408786 Catullus
Catullus's picture

Depends on if the exporter is also an importer of raw materials. Love that cheaper oil!

Tue, 06/28/2011 - 10:57 | 1408800 dcb
dcb's picture

as we approach the top of the fake descending channel on udn/uup we should approach some resistance, but it is the fake channel, short term target udn, 28.56. but if the trend is really down (dollar up) LOL. I expect it to go to 28.90 or so for the slower descending channel

Tue, 06/28/2011 - 11:15 | 1408859 johny2
johny2's picture

It would be a good time to exchange your francs for silver now, if you got some.

Tue, 06/28/2011 - 11:36 | 1408993 falak pema
falak pema's picture

the oligarchs have no faith either in fiat or PMs; only in the green hills of Vevey.

Tue, 06/28/2011 - 12:17 | 1409152 TumblingDice
TumblingDice's picture

Just bought some FXF puts. Good technical setup for a dollar bounce here.

Tue, 06/28/2011 - 15:32 | 1409727 Freebird
Freebird's picture

Getting prepared for 0.78...Cubans only please fellas...

Tue, 06/28/2011 - 22:14 | 1410556 Itsalie
Itsalie's picture

Same thing for PIIGS in the last decade, same thing for la suisse; now they are feeling smug and master of their own destiny with full of PIIGS savers' money rushing in, trying to flee before euro splits apart. They are just like euroland the last decade; who here remember when EUR/CHF traded at 1.6 just 5 years ago and swiss exports were cheap elsewhere? So they are destroying their own export markets (yes they still make some stuffs there) and tourism industry and buying cheap imports (no not china, they buy cheap from euroland now); thousands of swiss companies will go bankrupt within the next 2 years, when they have exhausted their reserves from the last decade and government life support; either that or they all convert to make luxury gold watches to export to china and india, if not just wait, like Volvo and Saab and MG Rover, the indians and chinese would come and pick them up for a song.

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