De-Dollarization Spreads: Swiss & Chinese Central Banks Enter Swap Agreement

Tyler Durden's picture

Submitted by Martin Armstrong via Armstrong Economics,


The Swiss National Bank and the People’s Bank of China reached a currency swap agreement this week. While this is not a huge trend changer in the near-term, it demonstrates that our forecast for China to become the largest economy and to be the next financial capital of the world when Europe and the USA blow themselves apart with defaulting socialism is on track. This agreement will allow the two central banks to buy and sell their currencies up to a limit of 150 billion renminbi, or 21 billion Swiss francs ($23.4 billion).




The deal will also allow the Swiss central bank to invest some of its huge accumulation of foreign exchange reserves in the Chinese bond market. 

The Zurich-based SNB said the agreement will further strengthen collaboration between it and its Chinese counterpart and is a “key requisite for the development of a renminbi market in Switzerland.” It could also facilitate trade and investment between the two countries, the PBOC said. This demonstrates that China is moving in the correct direction.

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Cattender's picture

so hoarding paper Fiat Dollars right now is not wise?

TeamDepends's picture

CNBS reader:  That's nothing!  The S&P is at ALL TIME HIGHS!!!!

fonzannoon's picture

Tyler show this dude some love. Whistleblowers need all the help they can get.

espirit's picture

Attack zee swiss.

No rules, just right.

Elvis the Pelvis's picture

The American dollar isn't going anywhere.  In fact, when this asset bubble finally bursts, it's gonna gain a lot of strength. Bitchez.

Keyser's picture

Yeah, right, and the globalists have a plan to encircle China just as they done with Russia... If they are going to pull it off, they will need a front-man with some backbone...

boogerbently's picture

They, (the entire rest of the F'n world) need us more than we need them.

We have the largest/strongest economy.

China's economy is a lie.....even bigger than our lie.

We have the strongest military (stronger than the rest of the world COMBINED).

What we HAVE, is a HUGE political corruption problem, which should sort itself out, because "they" can't make money if they sink the economy. they learned that LAST time.

BlindMonkey's picture

We have nearly 1/2 the population in the wagon that the rest are pulling. We have enough debt to kill the world 23 times over and yet keep papering over our problems so fast it is impossible to even fathom what would happen if the .gov ran a true zero deficit.

Good luck selling your cleanest dirty shirt meme here.

/sarc on the paper debt to kill the world 23 times over. It just came to me as I was thumb typing.

FredFlintstone's picture

Isn't it over half in the wagon?

Antifaschistische's picture

True...they need us, because they need oil, and to get it, they need US$.   But they're trying to break that link and appear to be doing so in a slow but steady and methodical manner.   I like underdogs so I tend to hope them the best....but I get paid in US$ and realize it's demise would not be beneficial to me.

Our "large" economy is the byproduct of two things.  Prior generations who worked their butts and the PetroDollar.

Rapidly our prior generational wealth is flowing away from us, and the PetroDollar has a terminal illness.

barre-de-rire's picture

your waking up will be paintfull to you my friend.

oudinot's picture

If the American military so strong why does it lose wars?

BurningFuld's picture

So that it can keep on fighting. Winning would be very counter productive to continual war.

TheObsoleteMan's picture

You are perhaps the biggest fool on ZH. "THEY" didn't learn shit the last time. All they did learn though, was that they were too big to fail. Criminals NEVER reform when there is no punishment. It only emboldens them.

Jack4952's picture

Sure, the U.S. dollar may continue to exist, just as post-World War 1 Deutsch Marks still exist and can be found in souvenir shops throughout Germany.  Of course, you can NOT actually buy anything with them!!!!  Then some day soon you too can open up a souvenir shop !!!!


FACT: Five (5) of the "big banks" in New York hold approximately 95-97% of the DERIVATIVES throughout the world, which just about everyone concedes are WORTHLESS. Yet, these bank still keep the derivatives on their books at their nomimal value, which makes these banks appear solvent when in fact they are BANKRUPT. (The only other bank with a significant amount of these derivatives is Deutsch Bank, which (according to German officials) has almost collapsed several times and is now under investigation by the German government.

That is WHY the Federal Reserve is buying up these worthless derivatives - no one else wants to buy this worthless crap. (Please recall that the OWNERS of these 5 banks are also among the OWNERS of the private Federal Reserve banks.)  So-called "quantitative easing" consists of is the Federal Reserve buying up these worthless derivatives at their fictitious "full value" AND lending money to these same banks at near-zero interest rates.  In short, the owners of the Federal Reserve are giving free mone and credit to themselves, as the owners of these big banks - for which the U.S. public will assume liability for repayment.

These guys make the Mafia look like Cub Scouts !!!!!



FredFlintstone's picture

Can't be true as it sounds like a huge conflict of interest :)

Makes Enron, World Com, etc. look like child play.

lasvegaspersona's picture

Rob Kirby, on one of Greg Hunter's Youtube interviews did a good job of explaining the derivatives market.

It is the bigs banks supported by the Fed/ESF that use these to keep market prices, especially interest rates, where they want them.

They have silenced the alarms such as interest rates and gold price but also the stock indicies...all are maintained in a range to prevent collpase.

This can only work as lonf as the prices of real stuuf stays stable.

When the world's major producers decide they have all the US paper they can use they will begin to demand something else. The obvious demand would be gold but other concessions might be demanded as well. All these things are done in private. These high level entities do not operate in a fishbowl. The element of surprise is a tactic they have repeatedly used to their advantage, like Rooseveldt and gold confiscation in 1399 or the 'coralito' in Argentina at the beginning of the first decade  of the century.

eclectic syncretist's picture

If Tyler's really want to make a difference they should be aligned with Alex Jones.  It's disappointing not to see his blog in the links here.

Hugh G Rection's picture


People post about Zionism too much in here, Alex would get scared off.

Welder's picture

Alex Jones works his butt off to divert attention away from Zionism. Acting crazy and deranged is part of his act too.

Wile-E-Coyote's picture

Alex's wife is Jewish that's all you need to know. He is being financed by someone behind the scenes.

No way can he run that operation on adverts for weight loss tablets, that in Alex's case plainly don't work. I watch his show sometimes, he is entertaining in a goofy sort of way; plainly bonkers though.

Grumbleduke's picture

Courtesy of the No Agenda Show he employs ~60 people in his warehouse, where they send out his boner pills or whatever.

Don't want to disturb the customers, now do you? His far christian right listener base is a powerful customer, that's why he's avoiding the Zion angle. Take a look at the comments to any given article - the creeps don't need long to show up, citing revelation and other prophecy paranoia.

Me thinks he's an opportunist, not a zionist.

At one time in my life he was a contributing factor to my exit out of the matrix, now I can't stand to listen to his fear porn.

Iwanttoknow's picture

Willy,Check this out.Both Alex Jones and Jeff rense are part of Genesis INc,a subsidiary of ABC.

Cathartes Aura's picture

know your meme.

Copyright ©2009-2014 Media, LTD

balanced's picture

That just hit me like a punch in the face. My own fault for being so naive... again.

Update: ABC Media LTD is NOT related to the ABC TV Network in America. Damn it man. Thanks for the reminder to do my own research.

CH1's picture

Alex's wife is Jewish that's all you need to know.

Ah, the paid trolls are out in force today. Cry Jew and suck up everybody's energy!

May your masters die.

Wile-E-Coyote's picture

Keep taking the pills asshole...............

shouldvekilledthem's picture

And Jew equals zionist?

Just like all the arabs are terrorists?


Grumbleduke's picture

Fraked a jewish prostitute once.

Does that make me a zionist? Or just a prick?

Maybe both, just to satisfiy the paranoia?

TheObsoleteMan's picture

Alex Jones is a phony. How do I know? BECAUSE HE IS STILL ALIVE. Bill Cooper was the real deal. He also exposed Jones for the fraud that he is. 

TeamDepends's picture

Dunno, fonz

Vanguard spokesman David Hoffman said the case is without merit.

“Vanguard adheres to the highest ethical standards in every aspect of our business,” Mr. Hoffman said in a statement.

He's probably a clean-cut guy and attended a fine college.  Besides, what's 1$B among friends?

scraping_by's picture

Yet, much of the power behind the Chinese currency is $3.8T in dollars, both UST and cash. Without the juice from the US, how much power does the Yuan have?



TeamDepends's picture

They have lots and lots of shiny.  Shiny Shiny Powa Powa!!!

COSMOS's picture

Not only that but they have almost our entire manufacturing lines.  If the Chinese say you want hair dryer but we no want dollars whatcha gonna do?  Except trade your currency for yuans

Keyser's picture

Not to menton all the IP to support the manufacturing base...

Urban Redneck's picture

Power in a currency is being able to export your debt.

CNY 150 billion is not the actual target.

Hugh G Rection's picture

Foreskin backed Shekel for reserve currency now!

BlindMonkey's picture

Are we talking Jew foreskin only?

I am not sure if we can really handle Africa being the world's wealthiest continent.

palmereldritch's picture

The Dbola contagion widens....

HardAssets's picture

Uh oh . . . . might be a good idea to stay off Malaysian airliners flying to/from China or Switzerland right now.

Keyser's picture

Watch the numerologists to have a wet dream on 8/25/2014 if something happens to another Malaysian airliner...


IronForge's picture

Better yet, avoiding Malaysian Airlines for the forseeable future would be a more prudent thing to do.

Pheonyte's picture

our forecast for China to become the largest economy and to be the next financial capital of the world

Wow Martin, your forecast is just mind-blowing. How did you ever come up with such a unique insight?

hobopants's picture

Don't you love how these idiots are able to completely ignore China's own massive debt problems? This isn't going to be a passing of the torch from corrupt America to corrupt China, it's going to be a freaking collapse all the way around.

Discounting all the nonproductive US debt shuffling, China is in all likelihood already a bigger economy than the US right now, But who gives a shit when it's mainly a result of malinvestment.

Anusocracy's picture

All of their shit stinks, it's just who's going to get theirs pounded back in first.

TeamDepends's picture

Sure they have massive debt and corruption, but they have something we USED to have- gold!  And they encourage their citizens to buy PMs, whereas we encourage our citizens to buy McCardboard burgers and fat-pants.

hobopants's picture

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

Gold will soften the landing, but it will by no means save them from collapse.

You also have to consider the size of their population when talking of gold ownership. The vast majority of chinese don't own any gold because they can't afford it, and they will suffer the most from an economic collapse, expect some major unrest.


deflator's picture

 They also have shiny new factories that actually produce things. We have dilapidated factories and marginalized factory workers. What we do have is fabulously wealthy people in finance, insurance, real estate and last but not least the most wealth of our nation is in healthcare. Don't forget about the fastest rising group of millionaires in the U.S. that are our government workers.