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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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Fri, 07/25/2014 - 19:20 | 5005755 Cattender
Cattender's picture

so hoarding paper Fiat Dollars right now is not wise?

Fri, 07/25/2014 - 19:23 | 5005768 logicalman
logicalman's picture

When was it?

Fri, 07/25/2014 - 19:28 | 5005788 TeamDepends
TeamDepends's picture

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

Fri, 07/25/2014 - 19:29 | 5005794 fonzannoon
fonzannoon's picture

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

Fri, 07/25/2014 - 19:39 | 5005829 espirit
espirit's picture

Attack zee swiss.

No rules, just right.

Fri, 07/25/2014 - 21:28 | 5006129 Elvis the Pelvis
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.

Fri, 07/25/2014 - 21:32 | 5006135 Keyser
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...

Fri, 07/25/2014 - 22:10 | 5006207 boogerbently
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.

Fri, 07/25/2014 - 23:49 | 5006392 BlindMonkey
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.

Sat, 07/26/2014 - 06:58 | 5006726 FredFlintstone
FredFlintstone's picture

Isn't it over half in the wagon?

Sat, 07/26/2014 - 01:48 | 5006538 Antifaschistische
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.

Sat, 07/26/2014 - 04:52 | 5006681 barre-de-rire
barre-de-rire's picture

your waking up will be paintfull to you my friend.

Sat, 07/26/2014 - 10:23 | 5006924 oudinot
oudinot's picture

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

Sat, 07/26/2014 - 12:23 | 5007248 BurningFuld
BurningFuld's picture

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

Sat, 07/26/2014 - 17:21 | 5007973 TheObsoleteMan
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.

Sat, 07/26/2014 - 06:39 | 5006715 Jack4952
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 !!!!!



Sat, 07/26/2014 - 06:57 | 5006724 FredFlintstone
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.

Sat, 07/26/2014 - 14:04 | 5007515 lasvegaspersona
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.

Fri, 07/25/2014 - 19:40 | 5005831 eclectic syncretist
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.

Fri, 07/25/2014 - 19:43 | 5005846 espirit
espirit's picture

Methinks he's a poster here.

Fri, 07/25/2014 - 20:24 | 5005977 Hugh G Rection
Hugh G Rection's picture


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

Sat, 07/26/2014 - 02:01 | 5006548 Welder
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.

Sat, 07/26/2014 - 04:49 | 5006677 Wile-E-Coyote
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.

Sat, 07/26/2014 - 05:45 | 5006699 Grumbleduke
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.

Sat, 07/26/2014 - 06:50 | 5006718 Iwanttoknow
Iwanttoknow's picture

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

Sat, 07/26/2014 - 10:37 | 5006952 Cathartes Aura
Cathartes Aura's picture

know your meme.

Copyright ©2009-2014 Media, LTD

Sat, 07/26/2014 - 14:53 | 5007624 balanced
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.

Sat, 07/26/2014 - 10:31 | 5006935 CH1
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.

Sat, 07/26/2014 - 11:58 | 5007179 Wile-E-Coyote
Wile-E-Coyote's picture

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

Sat, 07/26/2014 - 13:37 | 5007428 shouldvekilledthem
shouldvekilledthem's picture

And Jew equals zionist?

Just like all the arabs are terrorists?


Sat, 07/26/2014 - 17:41 | 5008016 Grumbleduke
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?

Sat, 07/26/2014 - 17:25 | 5007981 TheObsoleteMan
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. 

Fri, 07/25/2014 - 19:44 | 5005848 TeamDepends
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?

Fri, 07/25/2014 - 19:40 | 5005834 scraping_by
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?



Fri, 07/25/2014 - 19:46 | 5005854 TeamDepends
TeamDepends's picture

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

Fri, 07/25/2014 - 20:09 | 5005918 COSMOS
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

Fri, 07/25/2014 - 21:33 | 5006140 Keyser
Keyser's picture

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

Fri, 07/25/2014 - 20:34 | 5006009 Urban Redneck
Urban Redneck's picture

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

CNY 150 billion is not the actual target.

Fri, 07/25/2014 - 19:33 | 5005805 Hugh G Rection
Hugh G Rection's picture

Foreskin backed Shekel for reserve currency now!

Fri, 07/25/2014 - 23:52 | 5006400 BlindMonkey
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.

Fri, 07/25/2014 - 20:07 | 5005817 palmereldritch
palmereldritch's picture

The Dbola contagion widens....

Fri, 07/25/2014 - 21:26 | 5006125 HardAssets
HardAssets's picture

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

Fri, 07/25/2014 - 21:36 | 5006142 Keyser
Keyser's picture

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


Mon, 07/28/2014 - 03:49 | 5011770 IronForge
IronForge's picture

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

Fri, 07/25/2014 - 19:19 | 5005756 Pheonyte
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?

Fri, 07/25/2014 - 19:36 | 5005791 hobopants
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.

Fri, 07/25/2014 - 19:51 | 5005874 Anusocracy
Anusocracy's picture

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

Fri, 07/25/2014 - 19:57 | 5005886 TeamDepends
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.

Fri, 07/25/2014 - 20:23 | 5005928 hobopants
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.


Fri, 07/25/2014 - 20:43 | 5006038 deflator
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.

Fri, 07/25/2014 - 20:59 | 5006050 hobopants
hobopants's picture

Factories are great in a free market, but with centrally planned malinvestment you get too many factories producing junk that there isn't a market for and you end up having to sell or retool, both of which cost time and money.

The US had factories galore too when the market crashed in 29, and it took us years to come out of the depression despite all those "Shiny" factories.

expect similar results with china (and the rest of the world).


Fri, 07/25/2014 - 21:09 | 5006084 deflator
deflator's picture

So what you are saying is there are too many factories in China and while there is malinvestment in U.S. it is "needed"?

Fri, 07/25/2014 - 21:27 | 5006128 hobopants
hobopants's picture

What? lol not quite. What I'm saying is that a factory is built with an intended purpose in mind, and if that purpose is revealed to be unprofitable, it takes time, money and energy to repurpose it. A factory making bikes can't simply stop making bikes and switch to airplanes, not that simple.

America is screwed too, but that has nothing to do with my argument that china will be facing some very hard times because of the centrally planned madness that has occured there.

Fri, 07/25/2014 - 21:37 | 5006144 Keyser
Keyser's picture

All the world's economies are chugging along in slow motion and everyone has a debt problem... The only historic solution is WOAR...


Fri, 07/25/2014 - 21:48 | 5006152 deflator
deflator's picture

 I think Chinese central planners see things more clearly from an ascendency position than the US central planners see things from a position of



 When you are at the top there is only one place to go...

Fri, 07/25/2014 - 21:56 | 5006183 hobopants
hobopants's picture

"When you are at the top there is only one place to go..."

and when your economy is tied to that fat american going off the cliff, you both share the same destination.

China foolishly copied America's corrupt system of central planning/banking, and because of that it will share a similar fate.

Fri, 07/25/2014 - 23:04 | 5006302 jez
jez's picture

And lawyers. You got lotsa lawyers because you are fond of suing each other all the time.


In fact, in a statistic I just made up, I was reading that over 103 per cent of all the lawsuits in the world emanate from the US.

Fri, 07/25/2014 - 23:48 | 5006384 hobopants
hobopants's picture

Hey! Anymore talk like that and I'll be forced to take legal action against you!

Yes, we have way too many lawyers and they are a positive hindrance to getting anything done. They also needlessly raise the cost of pretty much everything.

Fri, 07/25/2014 - 21:09 | 5006079 tickhound
tickhound's picture

"...and they (chinese) will suffer the most from an economic collapse..."

The PONZI collapse will affect you more than some donkey rider used to farming the family rice field in China. You listen to too much of this boomergoon music playing around here.

They already live under more social, political and economic controls than we do. Most live third world. Most don't drive. Most know how to do simple things that the weakest of our citizens are tempted to call freaking 911 for... Food delivery, groceries, care... We are used to a standard of living the chinese are only now experiencing. They don't NEED to manufacture for us. Ultimately they would be better off if they didn't.

They don't care about furthering growth unless it's to keep pace with the model set forth by the west... AND Americans reward and incentivise the weakest of its culture of ideology by allowing them to stay home, not work and have many, many babies vs. the ONLY ONE (until recently) child left behind China strategy? They can make due without that sorta growth. We import refugees for the opportunity of furthering credit expansion. They could give a fuck.

They wilted under a state controlled press, we are only now coming to terms with it. They are a creditor rather than debtor. The PONZI collapses and the "American way" is toast. China will carry on no matter what bullshit you read around here.

Fri, 07/25/2014 - 21:35 | 5006138 hobopants
hobopants's picture

They are an importer of food and energy, what I meant was the poor will be hit hardest in every country, not the chinese in general. Not enough land to feed all their people, global supply chains break down and people will starve, there will be unrest.

China is screwed, just like America, no amount of wishy washy fantasy about self sufficient peasants is going to change this. 

Fri, 07/25/2014 - 21:40 | 5006150 Keyser
Keyser's picture

He who holds the most shiny baubles after the collapse will rule the day... As always, follow the gold which has been flowing from west to east at an astounding rate... 


Fri, 07/25/2014 - 21:50 | 5006170 hobopants
hobopants's picture

I would modify that to "he who can keep the most shiny baubles".

Sat, 07/26/2014 - 19:54 | 5008318 Ookspay
Ookspay's picture

Confucious say: "Man who go to bed with hard problem wake up with solution in hand."

Sat, 07/26/2014 - 01:16 | 5006504 angel_of_joy
angel_of_joy's picture

"Don't you love how these idiots are able to completely ignore China's own massive debt problems?"

The "idiots" are right. The Chinese government can always decide to default on its debt, since it controls the power in that country. Say one morning they announce that they are not gonna pay back any foreign debt. What is anybody going to do ? Declare war on China ? Do the "sanctions" dance ? They are quite self sufficient in manufacturing, and have plenty of stuff to trade for the oil and food they need to import.

On the other hand, do you really believe that the US Gov could pull such a trick, when the big banks name the government (and the legislators), and America imports almost everything (soon to include fresh water) ??

Sat, 07/26/2014 - 16:08 | 5007825 Raging Debate
Raging Debate's picture

Angel-of-Joy - Really? You think we're going need to import fresh water? All one needs is chlorine (bleach) to purify it. Give me a break! As for oil I believe we are no fourth largest oil producer in the world now. Plus America sits on trillions of tons of coal and natural gas. America can restart manufacturing in a year, really it doesn't need any other nation for anything. But fair trade is good as is variety, the spice of life.

Sat, 07/26/2014 - 16:31 | 5007868 hobopants
hobopants's picture

We had everything China had in 1929 too, and it didn't stop us from taking over a decade to recover (plus, unlike China we produced most of our own food back then). You underestimate the disruptive qualities of a system collapse.

China imports huge amounts of food and energy, when the system collapses people are going to horde that stuff for their own country, not trade it for cheap toasters and patio furniture.

Will be moving from conspicuous consumption to survival, which favors resources (Russia / USA) over factories that produce trinkets (China).

But hell believe what you want to, If ignoring the facts makes you feel better have at it.

Fri, 07/25/2014 - 19:21 | 5005765 world_debt_slave
world_debt_slave's picture

denude the CBs of that stinking fiat

Fri, 07/25/2014 - 19:22 | 5005766 LetThemEatRand
LetThemEatRand's picture

Gold's going down to $1170 Monday morning on this news.

Fri, 07/25/2014 - 19:25 | 5005779 Slave
Slave's picture

You gonna BTFD?

You ought to BTFD on guns and ammo too, Rand, before it's too late.

Fri, 07/25/2014 - 19:42 | 5005840 espirit
espirit's picture

Time to back up the truck.

Fri, 07/25/2014 - 19:45 | 5005851 LetThemEatRand
LetThemEatRand's picture

Not to be cliche, but I backed up the truck on the boat ramp and it went right into the water.  Damn.

Fri, 07/25/2014 - 19:56 | 5005877 CheapBastard
CheapBastard's picture

Wake up one Monday morning to hear the announcement that in the middle of the night while you were asleep the Fed devalued the dollar 40% "to stimulate the economy."


Check out the latest "Big Mac Index:


and here if that chart does not work:


oi vey!

Fri, 07/25/2014 - 20:11 | 5005929 fonzannoon
fonzannoon's picture

devalued against what?

Fri, 07/25/2014 - 20:29 | 5005990 Pheonyte
Pheonyte's picture

Against gold, if Rickards is right.

Fri, 07/25/2014 - 20:30 | 5005993 fonzannoon
fonzannoon's picture

why in the world would they voluntarily do that? To benefit 250 zh'ers?

Fri, 07/25/2014 - 20:33 | 5006003 Pheonyte
Pheonyte's picture

To wipe out the debt.

Fri, 07/25/2014 - 20:41 | 5006019 fonzannoon
fonzannoon's picture

why in the world would they want to do that? 


Fri, 07/25/2014 - 20:42 | 5006035 Pheonyte
Pheonyte's picture

There may come a time when our creditors want their money back, especially when they're more in a position to insist on it, and we're less in a position to tell them to fuck off.

Fri, 07/25/2014 - 20:46 | 5006040 hobopants
hobopants's picture

Then why not continue to print? If they wanted to devalue against gold then all they have to do is stop manipulating the market.

Fri, 07/25/2014 - 20:57 | 5006064 deflator
deflator's picture

Eventually, and it always happens, that you can no longer chase old debt with new debt. We are clearly in the midst of the paradigm shift where old debt dies and new debt cannot be created without a new enforcement sheriff.  In the meantime, and the meantime could last decades, sound money will be the safest investment.

Fri, 07/25/2014 - 21:03 | 5006072 hobopants
hobopants's picture

you either default or print, the FED has chosen the later and I can see no reason why they would change course now.

Fri, 07/25/2014 - 21:22 | 5006106 deflator
deflator's picture

 They will never change course..obviously they have to finance ever expanding government debt. Government debt is at it's compounding interest zenith where it will be doubling every few years going forward. Clearly a paradigm shift of thinking about debt is happening and will no doubt result in an apocalypse.

Fri, 07/25/2014 - 21:44 | 5006155 Keyser
Keyser's picture

It's a wet dream to think TPTB will voluntarily devalue the USD by 40%... Keep dreaming... 

Fri, 07/25/2014 - 20:59 | 5006067 Pheonyte
Pheonyte's picture

They will continue to print, but so will everyone else. Devaluing against gold is a last gasp move. They won't do it until they have to. Right now they still think they can keep it together. With interest rates where they are, the debt isn't an issue, but that may change eventually. (I'm just riffing on Rickards here, I don't know what the hell is going to happen, and he may be dead wrong.)

Fri, 07/25/2014 - 21:06 | 5006075 fonzannoon
fonzannoon's picture

I hear you Pheonyte and I don't mean to come off like a dick. Just look at Japan though. They are getting their balls roasted by inflation. Their 10yr is heading towards 0% and their currency is still basically dead stuck at 101(ish). Their citizens continue to hold those bonds. Their pension funds are buying stawks, not gold. That seems to be the blueprint. 

I am heading out to pick up my bro in law who is flying in from the U.K tonight. He says his bank there pays him 0% interest and he pays the equivelant of $20 a month for the privilage of having the account.

I think that is probably the plan....for a helluva while.

Fri, 07/25/2014 - 21:08 | 5006078 hobopants
hobopants's picture

I like Rickards, but I just don't see that as an option. It would cause a flight out of the dollar and into gold at a rate that would ensure hyper inflation.

Fri, 07/25/2014 - 21:08 | 5006083 fonzannoon
fonzannoon's picture

it's going to be hard to tell the difference between Rickards and Bass in about 2 more years when they finally have the same exact hairline.

Fri, 07/25/2014 - 21:18 | 5006099 hobopants
hobopants's picture

You mean they will both start taking after Ben Franklin? I know Bass has refrenced Rickards in a few of his talks, but he seems to be headed a whole different direction with the Argentina bond crap, talking more and more like one of the big boys, and less and less like a wild card contrarian.

Sat, 07/26/2014 - 00:46 | 5006469 scrappy
scrappy's picture

Sawdust and Pink Slime.

Fri, 07/25/2014 - 20:11 | 5005930 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Intersting link(s), thanks

Sat, 07/26/2014 - 16:12 | 5007834 Raging Debate
Raging Debate's picture

espirit - Agree at that price I'll buy plenty of gold.

Fri, 07/25/2014 - 19:23 | 5005769 blindman
blindman's picture
Germany Secretly Planning on Joining BRICS-Jim Willie
By Greg Hunter On July 23, 2014

Fri, 07/25/2014 - 19:23 | 5005773 logicalman
logicalman's picture

When the US dollar implodes, Mexico better be ready for lots of immigrants.

Fri, 07/25/2014 - 19:34 | 5005812 BanksterSlayer
BanksterSlayer's picture

Could this be the Mexican black swan that swooped in from out of nowhere? Hugh Salinas Price says that the Mexico Congress has nearly unanimous votes from both houses to return Mexico to a silver-backed peso:


Fri, 07/25/2014 - 19:36 | 5005823 Hugh G Rection
Hugh G Rection's picture

No way they try that.  Otherwise Mossad might try to blow up the Mexican congress again.

Sat, 07/26/2014 - 02:50 | 5006585 Otrader
Otrader's picture

More fake passports? (sigh)

Fri, 07/25/2014 - 19:35 | 5005814 Hugh G Rection
Hugh G Rection's picture

All your senoritas and margaritas are belong to me!

Sat, 07/26/2014 - 00:49 | 5006473 scrappy
Fri, 07/25/2014 - 19:24 | 5005774 Atomizer
Atomizer's picture

White House replies. Let me be clear, the escalation of terrorism exist even with our closest allies. 

The Presidential US robot will read from a prepared teleprompter robot speech. 


Fri, 07/25/2014 - 19:23 | 5005775 Quus Ant
Quus Ant's picture

It feels like moving in slow motion.  And at the same time it's a done deal.  Tzimmes.

Fri, 07/25/2014 - 19:26 | 5005781 salvadordaly
salvadordaly's picture

It's the Trendy thing to do, don't ya know!

Fri, 07/25/2014 - 19:28 | 5005787 NoWayJose
NoWayJose's picture

Even if you don't want to buy gold, take your fiat to the store to buy long term food storage items, paper products, grooming items, and any other 'consumer staples' that will keep for a number of years. Those things will be going up in price a LOT more than what the bank is paying you to save your fiat.

Fri, 07/25/2014 - 19:29 | 5005790 starman
starman's picture

the mailman just dropped  a fascinating "investors alert" convention in my city invitation. Here is how it starts..."The stockcmarket may not be reflecting the actual state of the economy" !? No shit wack brains!?

Fri, 07/25/2014 - 19:31 | 5005802 Tegrat
Tegrat's picture

"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."


So a communist society's central planners tend to produce a "powerhouse" enconomy while fascist/socialistic countries produce default?


Never heard that implication before.

Fri, 07/25/2014 - 19:31 | 5005803 pomlad5
pomlad5's picture

usa squeezed swiss banking balls too much, payback

Fri, 07/25/2014 - 19:34 | 5005811 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

this will be noted as the Spaetzle-Dim Sum trade

Fri, 07/25/2014 - 19:34 | 5005813 NumNutt
NumNutt's picture

Personally I am looking forward to the BRICS establishing their own banking system, it will give everyone an alternative to the fucking criminal syndicate that we are currently dealing with.  The thought of moving money off shore to a system of banks that won't bow to Lord Obama,  and report all your foreign holdings so they can tax the piss out of you makes me tingly all over....

Fri, 07/25/2014 - 20:04 | 5005903 Seize Mars
Seize Mars's picture

You don't understand. There is only one "banking system."

De-dollarization just means America is destroyed, that's all. It doesn't mean a new era of liberty has arrived.


Fri, 07/25/2014 - 20:13 | 5005940 COSMOS
COSMOS's picture

At least the Chinese banks are not run by Rothschilds that is an improvement.   The Chinese are tight and have excluded the gringoes.

Fri, 07/25/2014 - 20:58 | 5006066 Seize Mars
Seize Mars's picture


Riiight, that's it.

The only non R central banks are in Iran and Syria. This drives them fucking crazy.

Sat, 07/26/2014 - 02:16 | 5006556 Rock On Roger
Rock On Roger's picture

And that's it.

If you own the earth then you own the gold.


Stack On

Sat, 07/26/2014 - 01:04 | 5006492 daedon
daedon's picture

And very bad Chinese banksters don't get bonuses, they get a cocktail delivered by injection.

Fri, 07/25/2014 - 19:36 | 5005822 Escapedgoat
Escapedgoat's picture


Any information out there that there is American Gas/oil under the Swiss Lakes? That needs to be LIBERATED!!!!

Fri, 07/25/2014 - 19:43 | 5005843 Circle of DNA
Circle of DNA's picture

If there was a BRIC Bank here, I would put all my money in there and I'm absolutely sure all my friends would do the same.

Fri, 07/25/2014 - 19:51 | 5005872 Wahooo
Wahooo's picture

There are Chinese banks in the US and also Spanish banks.

Fri, 07/25/2014 - 21:52 | 5006174 OldPhart
OldPhart's picture

Yes, I use East West Bank for instance.

Fri, 07/25/2014 - 23:22 | 5006341 Jackagain
Jackagain's picture

I use North South Bank...

Fri, 07/25/2014 - 19:51 | 5005873 lakecity55
lakecity55's picture

It is a good idea, but Backdoor Barry would immediately be ordered to shut it down and seize all its assets.

Sat, 07/26/2014 - 04:00 | 5006631 Jack4952
Jack4952's picture

I am an American living primarily in Odessa, Ukraine since 2009.

The only banks in which I keep large amounts of cash are RUSSIAN BANKS based in Crimea, which I hold as both U.S. dollars and roubles. I now keep very little cash in Ukrainian banks, since after the KIev coup n February 2014 they introduced "capital controls" on U.S. dollar only accounts. (We have a house in Crimea also - which is now part of Russia.)

In UKraine you can set up a bank account which deals ONLY in U.S. dollars - for deposits and withdrawals, which is what I did. If you want an account for storing the Ukrainian currency (UAH), you need to open a SEPARATE account. KInd of a strange system, but it works!

Of course, since the Fubruary Kiev coup, the UAH has dropped in value from about 7.8 UAH per U.S. dollar to about 11.7 UAH per U.S dollar which is a UAH devaluation of about 41%  - so prices on imported goods have skyrocketed here.The people here who hold U.S. dollars or Euros hold onto them and exchange them into UAH only as needed for daily purchases.

I keep my savings here in U.S. dollars - so for me personally, everyday expenses for Ukrainian goods (e.g., food) have drastically DECREASED. However, for ordinary Ukrainians the price increases for foreign goods have been devastating. To make matters worse, at IMF insistence the price of natural gas, gasoline (called "benzene" here), electricity, water, heat, and public transportation have all increased.  People are trying to get exchange their UAH for U.S. dollars, Euros and Roubles - but the banks have set daily currency exchange limits (i.e., a bank branch will exchange UAH into a maximum of only XXXX U.S dollars per day TOTAL for that bank branch - all others still waiting in line are out of luck!). Since my account is in U.S. dollars, I can now withdraw up to $1200 U.S. dollars per day as cash (which they are required by law to pay) - so many people come up to me and ask me to exchange their UAH for my dollars - which I ppolitely refuse. Finally, on my last 2 visits to my dentist here, for the first time he asked for payment in U.S. dollars rather than UAH - which was recently made a serious crime in Ukraine. That tells you something.



Sat, 07/26/2014 - 11:22 | 5007095 oudinot
oudinot's picture

Yes, it does tell us something.

IMF controlled Ukraine is fucked.

Sat, 07/26/2014 - 11:55 | 5007176 supermaxedout
supermaxedout's picture

Ukraines property became cheap in Dollar terms.  Just like in Germany after WWI when US Dollars bought everything of value.

Sat, 07/26/2014 - 12:35 | 5007272 BurningFuld
BurningFuld's picture

(We have a house in Crimea also - which is now part of Russia.)  Good call dude.  "Flip this House" can only dream about your foresight.

Fri, 07/25/2014 - 19:55 | 5005882 kchrisc
kchrisc's picture

The Swiss have WMD and "yellow-cake."

Fri, 07/25/2014 - 20:06 | 5005905 SgtShaftoe
SgtShaftoe's picture

teddy bear nuke?

Fri, 07/25/2014 - 20:02 | 5005897 SgtShaftoe
SgtShaftoe's picture

Why is it really necessary for there to be a reserve currency other than gold?  It seems pretty superfluous to me. A multi-polar world sounds very pleasant compared to our current situation.

Fri, 07/25/2014 - 20:06 | 5005908 Ocean22
Ocean22's picture

This is all by design. The USA is set to implode and take the rest of the world with it so they can usher in the NWO. All going exactly as planned.

Piss off the entire world. Check
Act like a world bully. Check
Ship jobs over seas. Check

Fri, 07/25/2014 - 20:17 | 5005946 Cattender
Cattender's picture

i wish that spooky NWO shit was just kooky made up BS...

Sat, 07/26/2014 - 00:54 | 5006479 daedon
daedon's picture

Did you take the Red pill or the Blue pill ?

Fri, 07/25/2014 - 20:20 | 5005967 QQQBall
QQQBall's picture

Swissie is tied to Euro, so is this essentailly a Euro/Reminbi swap?

Fri, 07/25/2014 - 20:28 | 5005987 Urban Redneck
Urban Redneck's picture

No. The SNB can't print Euros.

Just like PBOC can't print USD.

Else we could just call it a EuroDollar swap.

Sat, 07/26/2014 - 03:09 | 5006593 Jack4952
Jack4952's picture

The Swiss print SWISS FRANCS. They do NOT use the Euro; if you want to use the Euro in Switzerland, you must first exchange your Euros for Swiss francs; same for the U.S. dollar. (Of course, some hotels and restaurants will accept Euros and U.S. dollars for payment, but they then convert those currencies into Swiss francs.)

Have some of you folks ever even been in Switzerland?

Sat, 07/26/2014 - 03:20 | 5006597 UselessEater
UselessEater's picture

Do swiss francs have an expiration date?

Wondering if its good to hold a few.

Sat, 07/26/2014 - 04:16 | 5006659 Jack4952
Jack4952's picture

Expiration date???  It is their national currency, so of course it has no "expiration date". Swiss francs used to be worth a LOT more than the U.S. dollar and the Euro, simply because the Fed and ECB were printing so much new money. However, as the Swiss franc rose in value, the price of Swiss exports in other countries increased greatly, thus hurting the Swiss economy. The Swiss government then decided to print more Swiss francs to keep upwith the money printing by the Fed and ECB, so the Swiss franc fell in value to previous levels and has remained there.

I hold some Swiss francs, but that is because I travel there a lot; NOT as an investment. But I hold a LOT MORE gold there, in private vaults.

If a business in Switzerland accepts Euros or U.S. dollars as payment, it converts that currency immediately into Swiss francs - so if you are due some change, you are paid in Swiss francs. (Of course, if you pay TAXI DRIVER at the airport in U.S. dollars, he will most likely simply "keep the change" by statiing something like, "It's because of the exchange rate." ;-)  ;-)  )


Sat, 07/26/2014 - 19:15 | 5008246 UselessEater
UselessEater's picture

Yes I thought expiration dates on notes were an odd concept as well. But I was told by someone to watch seriel numbers on a certain currency as the note have to be returned to a bank and replaced periodically with fresh notes. I just can't recall which currency it was and don't know if they were correct or not - I don't live in Europe.

Sat, 07/26/2014 - 05:13 | 5006689 Urban Redneck
Urban Redneck's picture

I live in Switzerland, and actually the place people use euros most often is at gas stations, where most people still pay in cash and there is none of this degrading pay-before-you-pump paranoia, but along the borders you can pay in euros most places.

Sat, 07/26/2014 - 03:06 | 5006590 Jack4952
Jack4952's picture


Switzerland does NOT use the Euro - it uses the Swiss Franc.

A few years ago, as the U.S. Fed and the ECB began spweing out vast quantities of money, the Swiss franc rose so greatly in value that the Swiss feared it would kill off their exports by making them too expensive. Switerland then made the decision to print more Swiss francs (and thereby devalue the Swiss franc) to keep par with Fed and ECB money-printing.

The Swiss franc is NOT "pegged" to either the U.S. dollar or the Euro. The decision was voluntary by the Swiss to protect their exports. ANs should the opportunity arise for Switzerland to use a gold-backed currency, they will do so - it is part of Swiss culture and history.


Tue, 07/29/2014 - 11:19 | 5006869 RaceToTheBottom
RaceToTheBottom's picture

How is a decision to print to keep their frank on par to either the euro or the dollar not a peg?

Fri, 07/25/2014 - 21:24 | 5006115 Hannibal
Hannibal's picture

Time to "Shock and Awe" Switzerland into the dark ages.

Fri, 07/25/2014 - 22:02 | 5006191 Duc888
Duc888's picture

Sgtshaftoe: Why is it really necessary for there to be a reserve currency other than gold?  It seems pretty superfluous to me. A multi-polar world sounds very pleasant compared to our current situation.


Silly wabbit.  How can you run a scam without fiat?

In the world there are producers and there are leachfucks.  Banksters do not produce, they leach.

Fri, 07/25/2014 - 22:33 | 5006246 Ned Zeppelin
Ned Zeppelin's picture

Maybe someday the Dollah does not rule but that day will not come anytime soon. Fact of life. Who has rhe biggest and fhe most guns? As Iggy Pop said, its all about raw power.

Gotta son called rock and roll.

Sat, 07/26/2014 - 04:54 | 5006682 smacker
smacker's picture

As I have said before, the de-dollarization of global economics is like Peak Oil: "it's not an overnight event" but a gradual process that eventually reaches a tipping point. Nobody knows when this will be but it can happen like a flash-flood.

Current events (eg MH17) and the relentless bare-faced lies coming out of Washington are (in part) to create a new Cold War to isolate Russia and then China to help the ringfencing of the "US dollar controlled world".

It won't work because Russia has vast mineral/fossil fuels but Washington's options are limited short of starting all out war to bomb other countries into obedience.

That's when it gets scary, given the psychopathic mental state of those in control of the levers in Washington and its sycophantic muppets in places like Westminster.

Fri, 07/25/2014 - 23:27 | 5006354 bitterwolf
bitterwolf's picture

It's real simple and complex.

There will be a big baaaad painful scary event ,folks will be real fucking upset.

G20 something will come out with a biiiig paradigm busting answer to said bad event.

everybody buys in because (new information) makes sense, has credibility and alleviates market fear.

everybody gets back to doing the same 'ol same 'ol but under one system.

progress towards the age old dream,ya just cant stop it.


Fri, 07/25/2014 - 23:34 | 5006369 kurt
kurt's picture

Somebody said there was free Swiss Cheese on this post?

Sat, 07/26/2014 - 00:12 | 5006434 hedgiex
hedgiex's picture

China may be stupid but not stupid enough when their economic structure and existing challenges will aggressively embark upon propelling the RMB to be a global reserve currency. To do so they will lose control on the interest rate that they dictate to their State Capitalist economy.

This is self defense against the global market pressure for the rise in the value of RMB. The pressure comes from the sea of liquidity caused by QEs all over flowing in. (This is the heart of the current currency war). Also, all these BRICS and now third party swap agreements are aligned with their gradual (below the radar) divestment of their $ reserves. (Will any reasonable person not take some money out of the table).

The article misses the main point.

Sat, 07/26/2014 - 03:47 | 5006499 Wild Theories
Wild Theories's picture

Well, people do have memes to flog, you haven't noticed that yet?

Sat, 07/26/2014 - 00:17 | 5006440 RockyR
RockyR's picture

given the incompetence of current american governance, running as far away as possible is only logical.

Sat, 07/26/2014 - 01:20 | 5006511 Radical Marijuana
Radical Marijuana's picture


This is the SYMBOLIC pole vault news story that has carried this issue over the top more than all the other previous news stories on this theme, that have so far been featured on Zero Hedge!

Sat, 07/26/2014 - 02:55 | 5006586 Jack4952
Jack4952's picture

Expect GERMANY to follow very soon. And then FRANCE. Not only is Germany dependent on Russian oil and gas, a great percentage of Germany's trade is with Russia. Add to that the fact that over 3000 major German companies have facilities within Russia - and they all would like to gain a foothold in China.

FRANCE is not too thrilled with the U.S. right now, as the U.S. has tried to block trade deals (e.g., helicopter war ships) and its PNB bank was recently fined $9 billion. WHY? Because PNB was engaged in selling off U.S. Treasury bonds for the Chinese and Russian governments!


As soon as you realize that all geopolitics is simply economics and business, the actions of the various national leaders become understandable.  Always has been; always will be.

"It's just business, Sonny. It was only business!" Tom Hagen to Sonny Corleone (The Godfather)

Sat, 07/26/2014 - 03:24 | 5006600 UselessEater
UselessEater's picture

from Jackass Jim Willie report:

"It is eventually going to happen, but not right now. The turn East by Germany has actually been decided over a year ago. Whatever Germany does, France will follow. The German commercial ties are vast with many large projects with Russia to demonstrate the commitment. The German trade with China is also considerable and growing. Trade relations with both will nations continue to grow, as trust has been built. The new reorientation and realignment process with the BRICS is well planned. Very smart and careful implementation is required since complex and dangerous. It will be made to appear natural and consensual. Expect it to happen during the next upcoming banking crisis in Europe and the United States.

Sat, 07/26/2014 - 04:47 | 5006678 Jack4952
Jack4952's picture

I try to follow Jim Willie as closely as possible, but I evidently missed the report above. (I do NOT subscribe to his "Hat Trick Report" since I think it is a bit too pricey.)

Could you provide the SOURCE of the above quote? In his "Hat Trick Report", an article in another publication or a video?

THANKS !!!!!


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