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Swiss Bank Intervenes Again
Pop quiz: you are a Central Bank and everything is slipping out of control. What do you do? Correct answer - whatever you can, better known as market manipulation. The SNB just killed the CHFEUR. Every country is now on its own as it tries to kill its currency first. It puts the currency in the basket or it gets the revolutionary hose again.
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"Every country is now on its own as it tries to kill its currency first."
Yup, the 21st Century version of Smoot Hawley.
while national protectionism is in but only the bottom of the 1st inning, the 21st Century Smoot-Hawley will be an ill-conceived "HFT" ban that frees the field of 'everyone' but DMM's n such.
Got that backwards. Less EUR to the CHF is appreciation, not "getting killed"
Killed, Tyler? It's only a flesh wound. Death by a thousand CHF sell order?
...unexpectedly...
That wasn't much of an intervention when compared to past ones by the very same SNB. In fact, one would think they're getting desperate.
Sorry for dumb question, but does Switz. print money to buy Euros, or sell CHF to buy Euros, or sell gold to buy Euros? Exactly how does the transaction occur? Other than just printing the money, why should CHF fall if it's simply now in other hands?
The EUR and Swiss Franc are toast. They never liked the idea of an imploding USD. So now their kill the EUR and the Franc. Simple.
Got gold?
Yes.
Not yet.
just sold the rest of my paper gold/silver
Paper for paper. Both burn.
I sold the last of my paper "GoLD". I am using the profits to buy miners.
Then you're out of luck Chuck.
its all in gold and silver
In honor of Chumbawamba... GOLD BITCHES!
http://www.boston.com/bigpicture/2010/01/gold.html
My personal favorite: #22 - The gold bears...
These central bankers are already wearing a lot of my skin for a suit.
How many times have they ripped my face off, because they have made immense intervention in the markets contrary to free market principles.
Trading is really momentary positions taken on a craps table or roulette wheel since the croupier arbitrarily changes up the numbers from time to time or throws a thumb into the wheel.
Admission really that this is a game over scenario. If you wanted free markets and true capitalism to ever return, you wouldn't dare impose gov't caprice.
The end of capitalism and Anglo-Saxon rules. Probably the end of many political states. Perhaps a beginning of internecine global conflict.
In this case, does CHF stand for Congestive Heart Failure or Currency Hath Failed? I'm confused...
ROFLMAO
So much win.
Don't get the "revolutionary hose" part. Does it mean the Swiss gov't would fall if they allow their exports to fall too far, and currency to rise too far? If so, aren't those somewhat better outcomes than most of the rest of the countries that are bankrupt? Or does it mean that rest of world is pressuring Swiss to devalue away on threat of causing problems for derivative-laden Swiss banks? If world is getting sick, Switz. can hardly expect to continue with business as usual. At best, it can quarantine itself until crisis passes. It's like an individual hunkering down and burying gold in the yard until the emergency passes.
Jame Gumb for Fed Chairman!
They still think they can inflate away the debt, in parallel.
i think all that matters is china.. if they take the foot of the pedal all these fools riding in back of the truck go flying all over the place
Excellent mental image!
i cant draw or i would make it a political cartoon - china in the driver seat seeing inflation in the road and hitting the break and US/Europe going flying..
but then you could also have Ben selling them a Toyota for that 'can't hit the break' option
o snap. they better ditch, and action-roll their asses out the door. and the car slams into what?
Killer Jame Gumm impression Tyler!
"uhmm, was she a great big fat person???"
LOL!!!
It puts the lotion on its skin...
Nazi gold will save them.
Switzerland has been consistently running trade and budget surpluses for the last decade. Its banks are some of the best capitalized in the world, and even UBS has recovered nicely. This is why they are suffering from a high Frank and are forced to follow a ZIRP interest rate policy.
The problem of the strong Frank to the Dollar has become less severe as the Dollar has bounced the last month.
Switzerlands biggest problem is the Frank/Euro exchange rate, so it is here that the SNB would intervene by selling Franks and buying Euros.
What I don't understand is why the Swiss don't simply go to the LBMA and buy physical gold with Franks. This way they would lower the frank against all other currencies while building up reserves that they could either sit on for 100 years, or use later to buy back franks prop up the currency. What I cannot understand is why the SNB would buy trash like Euros or Dollars!
Awesome spelling.
"Hey, where's Frank?"
"Oh, the central banker took him and all the other Franks down to Goldbugs'R'Us to trade them in for physical gold."
Swiss might know that physical gold might be no longer
there.
OT, USofA would like to keep 1.)DXY<81.0, 2.)DJI>10,000, 3.)30-yr yield<5.0%,as long as possible.
Some people will buy CHF at the dip. More intervenes will come.
Not a gold bug but notice the relative strength here of the metal.
And, Smoot Hawley were the nails on the coffin back then, like now. So what did you earn Ben shalom, garnish!?
well EU zone gdp growth was well below the estimates, which illustrates a simple truth any time the world economy enters the phase of trade wars = whoever kills their currency first, loses the least.
If we're looking at the major currencies, it's all a matter of relativity anyway.
If Swissy devalues and EUR devalues by the same relative amount, the cross maintains its relative value.
Can anyone explain why, as the dollar index is up today, the Dow has done a round turn of 100+ points (from a low of around 9985 to a high of around 10115)?
DavidC
Look like we rally big next week: http://www.marketoracle.co.uk/Article15801.html
Gold looks good, I've been buying silver and platinum lately (fade me).
Although this manipulation is very good for precious metals, and will later lead to hyperinflation (this will make the market appear to be achieving gains) currently the tightening of rates and M3 should turn the markets around again. I think the DoeLarr is about to push to 82 on the DXY and the Dow is now set to drop to 96 hundo. gold will test it's new support level of $1066 an OZ.
It puts the lotion/chf in the basket? Julian humor for certain... Who's that? Not sure, but in the FX market surf is most certainly up... ; >
http://www.youtube.com/watch?v=IGxmdsQ3NGA
If these dumb fucks were truly intelligent, they would allow their currency to strengthen against the horde of devaluing retards and then buy everything once the dust has cleared.
The US allowed the dollar to rise against the rest of the worlds currencies when Volker let interest rates rise towards 20% in 1981, and this was one big step towards the demise of US manufacturing. I was working for the US army in Germany in the late 80's, and there were many GI's that bought BMW's and Mercedes's when the dollar rose to close to 4 DM. When US interest rates collapsed in the late 80's, all these GI's could no longer afford there DM car payments. This is why most of the EU was happy to get fixed exchange rates through the Euro, and why the gold standard was so successful in the late 19th century.
Choppy sideways action and chronic mixed signals continued this week, but the buying support I have previously mentioned returned on Friday 12 Feb.
It seems the DOW / SP500 / EURO / COPPER counter trend rally may start this coming week.
Daily charts remain bearish of course.
http://www.zerohedge.com/forum/market-outlook-0
boycott SNB...stop trading eurchf...just boring spikes
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