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Meanwhile, In Switzerland...
Despite the ever-levitating nominal levels of Japanese stocks, and relative stability of European peripheral bonds, it appears the demand for 'safe-havens' is very high. Swiss 2Y interest rates just plunged to their lowest in almost 3 months at -4.7bps. It seems that even with the possibility of depositor haircuts, savers are more comfortable stashing their hard-earned cash in Switzerland than in high-beta US equities. This is the biggest 2-day drop in rates since Cyprus.
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Are the Swiss planning on remaining neutral for WWIII as well? Looks that way.
WWIII is a financial war and we're certainly not neutral in that arena.
We got attacked by the US in the late 1990s and have been at war ever since.
So the Swiss are not defending any peg and they are printing too. Well I guess if they printing Dollars/Euros, they have to print. Crap, when the swiss start lying, you know the world is fucked. I don't like the tax avoidance and confiscate policy in the west.
I read pig for peg, lol.
Clearly, all of these buyers of Swiss bonds do not understand the political capital invested in Europe. They vastly underestimate what the Euro means for the Europeans, for the Euro area.
Clearly, all of these buyers of Swiss bonds do not understand the Swiss domestic bond market. The last thing any sane person here wants is the Federal government spending MOAR MONEY (since there is a balanced budget law- our taxes would most likely go up if they fall to the temptation to issue unnecessary paper...) The government expand the withholding tax and make foreign investors put their uninsured deposits in the two ginormous clusterfucks-waiting-to-happen just like everyone else.
First Switzerland has been selling gold, because we were forced to (read: Ferndinand Lips - Gold Wars). Now the SNB is selling CHFs, because of the weakness of the domestic banking system. The erosion of the Swiss financial hub started in the late 1990s when banking secrecy was first attacked.
crap.
If you'd care to elaborate we could actually have a discussion.
That was crap as in "oh crap", sorry, I still thought these folks were the last somewhat honest blokes in the EZ.
ok, never mind.
So whay are suddenly the Swiss banks out in the cold? Who did they f*k with?
Maybe they've served their purpose?
The City of London and Wall Street. It's all about market share.
The prolem with Swiss banking secrecy is that there are Swiss people who know the details.
Human beings are the weakest link in the chain.
If you want to keep something secret the first rule is not to tell anyone, including a bank.
The financial war is only a prelude to the shooting war... The real fun hasn't started yet.
Yeah but WWII never ended... Zee Germans relocated!
The SNB printed 5bn CHFs in March, ie they are intervening in EUR/CHF above the floor at 1.20
It's funny how the big money will go to great lengths to avoid taxation, but they don't seem to mind out right confiscation. If it were me I would pull everything out of the system....wait I already did that..
Cyprus called "fire, fire" for everybody.
Everybody is trying to leave the building unscathed, but the problem is, all exits lead to other buildings also........on fire.
Not really.
You can convert capital into things that cannot be taken from you.
Some assets are prone to depreciation some are prone to fire or theft, some are not.
Some assets can be hidden, some can be kept secret, some cannot.
The only asset that is fire proof, unstealable, hidden, secret and does not depreciate is knowledge and skills.
The best thing to invest your capital into is yourself. If you train to be a doctor then now matter what happens... on the other side... you will be a doctor.
They can tax your wealth, occupy your land, steal your gold, burn your house down, but they cannot take skills and knowledge from you and if you run and hide, then your knowledge and skills will always be with you wherever you go. You can use that value at every stage, without having to plan ahead.
You can also hide knowledge and skills very easily far more easily than any tangible asset.
No disagreement, none whatsoever.
Alzheimer's happens :-P
LOL
Yes and no. Cuban doctors coming to the US frequently find themselves working as orderlies, or, at best, nurses. American law degrees are largely useless overseas. PhD's from Russia sometimes end up doing janitorial work in Israel. Bureaucratic barriers are everywhere.
Hey finally a very smart comment. I fully agree with you and is where I am pkacing part of my money. They say that if you cant beat them you should join them. I wont but at least I will understand them. That is why I am getting an MBA as valedictorian in a top school... Lots of fun too. And Ben cant takevthatone away
Any gov represents big interests behind it.
If a gov is going after big money, it means that some big interests are going after other big interest's money.
Wolf eating wolf. Winter at full force, no food.
That's because big money is invested and not deposited in some interest bearing account yielding 6% in a zero interest rate environment. Deposits got a haircut not portfolios under the custody of the bank. Only Corzine gets to do that.
Any "deposits" into bonds, can be confiscated also. The law can be changed at no notice.
the key thing everyone needs to remember is somehow we continually elect the people who change the law with no notice to represent "us".
Fonz, there's no election and there's no choice. Hasn't been forever.
What value!
Well on a relative value basis it is almost "reasonable"...-4.7 bps on a 2 year Swiss Government bond versus a depositor bail-in risk of minimum double digit proportion makes "sense" when you consider the potential of Swissie currency appreciation versus the Euro...at least on an short term/interim basis...and if you are selling Yen (like everyone else in the world) you can surely cover the -4.7 basis point cost...Tallest Dwarf Portfoilio methods employed...notwithstanding the Politcian/Bansksta hedge as I am certain that MANY of the movers & shakers have their money in Switzerland...just ask Hollande!
All paper will reach zero value... That PMs are the only true money is as certain as gravity...
Though I totally appreciate your sentiment, gravity is an immutable physical law, finance is simply a contrivance attached to each Government's Power Structure...therefore, the games continue...just ask the Bank of Japan...It would be wonderful if laws were applied like physical laws...but that is what happens when transparency is a priority </sarc off>
Without going into detail, gold as money is an immutable physical law... As much as we live in a time when man believes he can defy nature, he cannot.
IMO gold was given to man by God to be used as nature... Fiat is what God calls man's system, or sometimes 'Rome'... But setting that aside, nature has supplied an element with absolutely unique characteristics... Nothing else compares to it.
Gold defines the nature of money, not man... It is absolute hubris to think that men can whimsically decide otherwise...
Negative rates – wow – so they charge me to put money into their “bank”.
That's the way they've done it in Switzerland for a long, long time.
Personally, i don't see what the big deal is.
ask the one's who are doing so, they will tell you, where the big deal is!
Maybe they don't want their money inflated away....like the rest of us?
The fact that any sovereign's paper can go negative is testament to the fact that gold despite going as high as near 2k still rests in a coma. Let the gentle sleeping giant rest for now, soon enough it will develop into a hurricane that will destroy all of man's feeble efforts to save the shiat system.
Meanwhile in Japan.. http://thewatchers.adorraeli.com/2013/04/08/deadly-levels-of-radiation-found-in-food-225-miles-from-fukushima-media-blackout-on-nuclear-fallout-continues/
With all that cash at negative rates (depositers paying the Swiss 4.5% to just hold their cash) I am certain that the SNB would be buying PMs.
I mean do they think that they are going to get their own gold back from storage in the Bernankle's basement at the NY Fed?
Mind the Swiss make cracking watches,
I have one my father owned for a long time that works off the motion of your arm, no batteries needed.
It keeps spot on timing. Then again I could be prejudiced, as I have a mate who is Swiss as well, and he is a cracking bloke.
Yes, all in all, the Swiss are alright by me.
........except the 7 douchebags in Bern!
All you need is a state sponsored mine to slave in, and you can finally get some utility from your dead watch.
can't go any lower. bond crash imminent. lulz
The implications of negative interest rates (and even negative real rates) is astounding. The global financial system is swirling around the toilet and no one has any interest in pulling it out (yech). They are simply fixated in watching it go round and round hoping that at some point it does not reach the hole in the bottom... Good Luck with that.
Me being a little thick or slow, what is the mainstream bank/investment house/media/politician's response when asked why someone would put money into a known negative yield?
The usa is heading there. My credit union lowered their rate on deposits from 0.125% to 0.005%. No less than zero next? I hope so.
Face the facts. They are closing off the exits. Switzerland was closed some time ago.
I thinks the exits are closed.
My SWIFT transfers went thru' thursday night,only left enough to pay utilities and
property taxes for a couple of months if my renters move out.
Its the Bank of Posturepedic from now on,with occaisional gardening accidents for
excercise.
If you cannot touch it , its not your.
The Swiss got sucked into a trap by allowing their banks to have the best of both worlds.When the British-American banking system encouraged the Swiss banks to get big overseas.It was just a matter of time until greed got the best of them in New York.Basically,it was just a repeat of the Al Capone scenario,where the government simply nailed them to the cross using the Internal Revenue Rules.Allowing Americans to hide from Uncle Sam and not paying taxes on foreign income?And you participated in funding this activity did you?Sorry to tell the stupid,idiotic Swiss banksters that they didn't fully understand a different tax gathering system they got tied down to.How dumb can you get?Ya,it's over for the Swiss,I guess that's the payback for hiding Nazi loot all those years?Pretty dumb I'd say.Old Uncle Sam is whispering "suckah."