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Swiss Franc Hits Fresh All Time High As Gold Surges; With SNB Out, Is CHF Becoming New Reserve Currency?
With the ECB determined to hold the EURUSD above 1.20 for the time being, the question of whether the EUR will hit parity with the CHF first is becoming more topical. The Swiss currency has been dropping consistently every single day, and just hit a fresh all time high against the EUR at 1.3491, and looks like it will hit parity with the so called reserve currency within the month. Even as gold is once again on fire (+ $10 so far today), investors have suddenly realized that with all of Europe moving its deposits to Swiss banks, it may in fact be the Swiss currency that is safest out there, backed by an increasing amount of deposits, and not to mention, gold. Should the Fed indeed announce a $5 trillion QE expansion as predicted by AEP yesterday, and Bob Janjuah a month ago, look for the "risk haven" currency to promptly regain its place as everyone's favorite short, leaving just the CHF on top, especially since the SNB now appears to have given up on intervention for good.
Gold, which is now unchanged for the "massive" manipulated drop on Monday.
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The SNB must not fear deflation as no Swiss business is passing on advantage of cheaper imports to clients. Only consolation is that the Swiss will get very cheap holidays in Europe and those lucky to live near the boarder can shop in Germany/France/Italy.
it could be nice to do some shopping in eu country but i fear for the export sector of my coutry , plus the fact that we might feel more and more pressure on the job market due to the shengen agreement
Amazing how gold stopped right at the dashed yellow line.
The Evil Empire will do ANYTHING to keep gold below there today. After Monday's action, to close UP on the week would be significantly bullish and must not be allowed.
They just blocked it again at 10:16. Price made it to 1258 before immediately getting beaten back to 1253.
So, who will win the day? Probably the Evil Empire but I have to give the longs an atta boy for at least trying to force the issue.
Just stopped it again at 1259 @ 12:25.
The bulls just might win. Don't be surprised to see a quick jump to 1265.
Still rumours out there that significant amounts of private savings are being moved from France/Germany/Netherlands etc. to Switzerland, out of the EUR into CHF.
What a huge move in EUR/CHF
It's all of the Euro denominated money moving to Switzerland. I don't know about a new reserve currency, but Greeks, Germans, etc are fleeing their banks and dumping their Euros.
This is flight from unbacked to partially backed.
It's all right there in broad daylight, folks. People are scrambling for asset lifespan
The franc has not been backed by gold, even partially, since 2000.
Thank you.
I wonder why the CHF is being touted in this ZH article as being partly backed by gold?
"It's all of the Euro denominated money moving to Switzerland."
Plenty of USD-dominated assets moving that direction too regardless of legislation designed to prevent it.
To my knowledge, there is no legislation that prevents people from moving their money out of the US. You are just required to report foreign bank accounts in excess of $10,000. If they really want to create a problem, then they should try to ban it and see how much money leaves and never returns. These guys have a definitive plan, but sometime I do wonder if they really are retarded. If they would implement a flat tax or the Fair Tax, they would see money from around the world flood the US like never before. It really is what we need to help turn this Titanic around, but they are dead set on pushing us to become a Euro-socialist country with cradle to grave nanny-state "benefits".
Unless the percentage was higher than the 15% most rich pay, the flat tax by itself could not generate enough cash.
According to Art Laffer, we would only need an 11% flat tax to completely replace what we take in now - but it does incorporate more people paying taxes. Consider the reduction in government that would come from it and it's a huge win. We need to focus on getting people on to the tax rolls not off of them. The more people that have skin in the game the better off we will all be. The biggest part of that is creating a favorable business and capital environment to attract both of them back here. Part of that comes from the disintegration of Unions which may be the single most destructive force in both the public and private sectors today.
Kudlow's yes man Laffer? The two have never told the truth on TV. They also agree the Treasury should be starved of funds so the US will default on it's debt thus defunding SS and MC. They also don't believe the military budget should be cut.
Anarch,
Fine,defund em', just send me my money for the 35yrs I paid it in.
I will be ALL OVER it.
If you PAY for something, it's not a gift,( It means your ENTITLED to it) ..............you cannot penalize people who did the right thing, and reward those that did nothing, and get a free ride.
This sounds just like Democrats, and Liberals, left wingers........ALWAYS eager to give away OPM,and steal from those that paid for it.
Wrong. There have been some major changes in reporting requirements lately. You should be aware of those before making statements like these.
There may not be legislation per se (yet), but the atmosphere has definitely changed. Many foreign banks are no longer willing to open accounts for US persons.
...Sorta leaves only one currency to move it into then, doesn't it? Looks like they skrooed themselves!
What a bunch of dumbasses.
The "new" reserve currency will be what man has done since the dawn of time. Barter is back big baby.
Did I mention I am a Swiss American dual Citizen?
Might be time to dust off my passport and apply to work in Geneva. :D
Lucky dog....to get a foreign passport/citizenship now, cost's anywhere from $200k-$400k............IF you want one fast, and that's just for a couple of Banana Republics.
that's a lot of dough
canada made me a citizen just for 'waking up' about a year ago
which turns out to have been pretty cool
who was it on here that told me last month the swiss were only good for making coo coo - ier coo coo clocks? I bet you wish you had 30% of your cash in francs now. I never believed in the euro or the eu but I had to wait a long time to be proved right.
Ahhh to be boring and Swiss ... just remember haters - - its unionised labor that makes those trains run on time within 5 secs. of schedule. Of course, the unionised labor never calls in sick, and the labor leaders aren't crooks.
It must be nice to live in Fantasy Land.
The Swiss must be holding more gold than they're reporting...
carbon,
What does that matter?..their currency is as fiat as anyones.
I don't know what all the gold and Swiss franc allusions are about... CHF hasn't been backed by any gold since 1999.
http://jessescrossroadscafe.blogspot.com/2010/06/official-gold-reserves-as-of-june-10.html
tmosley is spot on - TY- ZH is known for factual reporting and in fact CHF has no convertablity to gold, pls make note! CHF is another fiat in the paper ccy world and is enjoying a flight to safety bid.
Well, a ton of money is moving in Canadian, and Aussie currency.
You will notice, that BOTH have positive growing economies, and LOTS of metals in the ground..............to back their wealth.
The government is catching lots of people due to fractionalizing. People think they can move small amounts of money and get away with it. Multiple deposits or withdrawls that show a "pattern" are reported.
Anarch,
Yes, and your favorite teller at your bank is in cahoots with them.
Any transaction for 10k+, must have a special report turned into the IRS, and combo, of withdrawals EVEN over a years time, in increments of equal values, is considered STACKING(if over 10k)...and your ass can be prosecuted.
If your bankster, reports what they deem unusual patterns of JUST WD's from your norm, they can report you.
If a prosecution occurs, the bankster, get's a 25% kickback of the amounts seized.
I am certain 99.9% on here are aware of this........but, for that .1, there it is.
While no one may be immune to the coming shitstorm, I moved my 'ass'ets back to Canada from the US. It's not only currency. People, intellectual capital, 'assets' both hard and soft are leaving the core, US, EU, whatever and repositioning. I'm not saying this is in advance of a 'significant' event or that anyone my not get you know what on their faces when the sh hits the fan, but it's not just currency that's on the move boys and girls!
In the 30's the US military was asked to draw up plans to invade Canada to gain control of the resources. The plan was to attack the major cities with poison gas. The estimate was that one million Canadians would die. It was felt the Canadians would be so stunned they would immediately sue for peace. The US Navy was to be sent out to confront the British Navy to block any moves to reclaim Canada.
So if you think the US will leave Canada alone if the SHTF you may be surprised.
In the end a more ingenious plan was put forth by some on Wall Street. Help the Germans and Japanese build up their military. The goal was to use Germany and Japan to inflict fatal wounds on the British, French and Dutch empires. The US would then come in an pick up the spoils at bargain basement prices.
It's just evil enough to work...
Don't forget the Soviets and the Bolshevik revolution as well as Stalin's excesses all financed by Wall Street, the street that keeps on giving.
Yeah, I'm sure Wall Street were really enthusiastic supporters of Germany and Final Solution. That makes no sense given the large number of powerful Jewish interests on Wall Street during that time period (and every other time period).
I read that Wall Street also financed the Vandals to help take down the Roman Empire.
Robt,
No, and more will be doing so asap.Look for legislation, stopping currency transfers soon..........and bodies.
Unfortunately, the only one's who will be able to skate, are foreign nat'ls, dual passport holders, and the very wealthy.
But, good for you, if that's your home country.
Perhaps you are right. Personally, I'd just as soon do business with the Chinese. Who, by the way, are snapping up resources (more positioning) all over Canada, Australia, etc. Oh, and while you're running around the world waving your big US dick around, you left the back door open. You know all those Messicans that were in the US working hard?! They're leaving too...(assets on the move). As I said, things are changing 'at home' and abroad... It will be a long process, in it's early stages and none of us knows what lies on the other side of all this BS. We all make decisions and I'll take my chances in British Columbia and with the Chinese, k?! Just sayin...
The problem with the Swiss Franc is that it's backed by OTHER peoples gold. Just ask the Libyans when they took their gold out of swiss vaults.
Four,
The Swiss currency has not been backed by anyones gold for a while now,,,,,dumb asses.
My point was to the original post, "it may in fact be the Swiss currency that is safest out there, backed by an increasing amount of deposits, and not to mention, gold"
My comment was a slight joke that the Gold in Swiss vaults doesn't even belong to Switzerland, it's predominantly foreign owned, and therefore can NEVER back the Swiss Franc.
D@mn! And I was hoping to move to Lugano.