"Depositor Repression" May Spread To Swizterland, EURCHF Spikes
Moments ago we got news that the same kind of "depositor repression" aka wealth tax just implemented in Cyprus over the weekend, may spread to other stability and deposit havens. Such as Switzerland. Just before 7 am Eastern, the SNB's Moder, who is an alternative board member, said on the wires that the SNB will not exclude negative interest rates, which followed earlier comments from the IMF that the SNB should have negative rates if there is a renewed surge in the Swissie, and a plunge in the EURCHF, as has happened as the Euro has tumbled. Sure enough, the EURCHF soared on news that even Europe's last remaining deposit bastion is about to be impaired, because all negative rates are is an ongoing deposit confiscation, instead of a one-time "levy" as per Cyprus.
Bottom line: it is becoming increasingly clear that "your" money is not welcome anywhere, and the the authorities would rather you withdrew it, and injected it into the economy, in a desperate attempt to raise the velocity of money.
That what will happen instead is the parking of said money into deposits and other truly safe venues, not to mention conversion into precious metals and other relatively safe stores of wealth, will merely be chalked off to yet more "unintended consequences" when the chips finally fall.
In the meantime, it sucks to be a Russian billionaire oligarch: suddenly your money isn't welcome anywhere (unless of course that triplex in CPW is finally a bid, sight unseen). Well, except for Singapore... and Japan of course. One wonders what happens to the Yen exchange rate after all the marginal wealth in the world starts buying up JPY and parking its cash in this last true bastion of depositors safety.
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