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What Really Happened At The SNB Yesterday: One Person's Take
Via Reto Rietberg,
Here are a few theories on what really happened at the Swiss National Bank on January 15, 2015. That fateful day, the SNB suddenly decided to end suppressing the value of the Swiss Franc versus the Euro.
What happened at the SNB?
At the hastily arranged press conference on January 15, SNB's president, Jordan, looked like a red-faced school boy caught with the hand in the cookie jar. None of his explanations made any sense. The SNB was clearly caught by surprise itself and didn't have time to make up some better lies. But why this sudden change of heart, throwing in the towel causing book losses of somewhere around CHF 75bn (>10% GDP)?
Some theories:
a) SNB had to buy Euros by the billions every day, and the balance sheet was exploding. FX holdings, at almost 500bn at the end of 2014 might have reached 600bn or more (almost 100% of GDP). SNB is a listed bank with minority shareholders (like the German Theo Siegert, who holds 5.5%). So may be Swiss regulator was getting uneasy with leverage?
b) Foreign FX is not held at the SNB, but rather at an account at a foreign bank in name of the SNB. May be at the ECB itself. So the ECB probably knew exactly what was going on, and how many Euros the SNB was piling up. If the number was getting out of hand, ECB could have threatened to leak some info, inviting speculators to mount an attack on the SNB.
c) SNB had to hold the fort until after the gold referendum, since such a disaster would have undermined trust in the SNB and possibly have tilted a few towards voting "yes".
d) After the opinion of the ECJ on bond buying it has become pretty clear the ECB will go all-in at its next meeting and begin buying Euro-zone bonds in earnest. The SNB was running already into difficulties finding AAA Euro-zone bonds to buy with a positive yield (to "recycle" all the Euros bought). The SNB was forced further and further out on the maturity ladder, increasing DV01 (the risk should interest rates start rising).
e) ECB made an offer to the SNB to take those Euro-zone bonds off the SNB's balance sheet. In exchange, the SNB had to promise to stop buying Euros, effectively ending the peg. The ECB was never very fond of the SNB's interventions, since the large buying of Euros probably left the Euro stronger than it otherwise could have been, thereby working against the ECB's intentions. Letting the SNB know what is about to happen next week (and that the SNB would have been overwhelmed by Euro printing) left little choice. For the ECB killed two birds with one stone: it removed a large buyer of Euros, and it would give the ECB a large chunk of bonds they otherwise would have had to buy via the market.
f) The ECB told the SNB it couldn't care less about a "Grexit" (exit of Greece from the Euro-zone). The SNB would have to expect massive further inflows into the CHF in such a case.
g) Interestingly, an article appeared in the NZZ newspaper a few days before the cap fell ("Euro Mindestkurs - SNB-Doyen will neue Untergrenze", NZZ am Sonntag, January 11, 2015. In the article, Ernst Baltensperger, an "influential thinker in monetary policy", recommended giving up the 1.20 barrier as potential losses from the SNB's balance sheet were rising. He also floated the idea of replacing the Euro barrier with a cap versus a basket of currencies (50% Euro, 50% US Dollar).
The question remains how much of the SNB's equity is gone, and if it will be forced to resort to a rights issue. Instead of alienating Swiss Cantons with a cash call, the government might decide it is cheaper to buy out minorities, delist the stock and survive with an irrevocable government guarantee.
* * *
Of course, these are fictional narratives... but isn't the entire edifice of the world's markets 'fictional' where truth is stranger than any fiction one could have imagined just 7 short years ago...
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Explain the concept of Hope and Change using the context of "King Solomon's Mines" by H. Rider Haggard.
Less than 500 words, please, and legibly in the blue book, single spaced.
Julius Caesar, (aka - Jesus Christ), lived in Briton, (west Rome), and rode Elephants and had great Vineyards (in Briton). He also had a great fleet of Ships, (aka - Navy). His family is still there.
From a financial standpoint, I'm curious about the Vatican.
How much money did they have tied up in this?
If the Pope starts looking haggard and tired, or cheery and bright, I will take either of these as a tell.
The Vatican is paying for their Swiss guard protection services in CHF. Don't think the Swiss are paying much into the Vatican so at least that bill is now 20% higher. Chuch runs the best racket in town though. I'm sure they find a way to make up for it.
Vatican security, lol. I thought with the big guy on their side they'd feel pretty secure already (unless they have some sort of lack of confidence for some reason), and shouldn't they be looking forward to any unexpected trips upstairs?
Vatican, The City (London), D.C. Pentagon.
three sharp points of a tri-angle that retain their "sovereignty" whilst embedded in their respective "nationstates".
research rewards effort.
Spiritual, Financial, Military. It's an interesting hypothesis for certain. I like to pick at many different carcasses as I survey the landscape, much like yourself.
CA,
what, you forgot tel aviv?
its according to how you draw the triangle. tel aviv is in the center, lol
I believe I covered that when I acknowledged Washington DC / the Pentagon.
seriously, no snark.
Conventional wisdom suggests that a global increase in monetary rewards should induce agents to exert higher effort. In this paper we demonstrate that this may not hold in team settings. In the context of sequential team production with positive externalities between agents, incentive reversal might occur, i.e., an increase in monetary rewards (either because bonuses increase or effort costs decrease) may induce agents that are fully rational, self-centered money maximizers to exert lower effort in the completion of a joint task. Incentive reversal happens when increasing one agent's individual rewards alters her best-response function and, as a result, removes other agents’ incentives to exert effort as their contributions are no longer required to incentivize the first agent. Herein we discuss this seemingly paradoxical phenomenon and report on two experiments that provide supportive evidence.
http://www.sciencedirect.com/science/article/pii/S0167268113002825
Vatican, The City (London), D.C. Pentagon. = ROME
Pope is busy crushing individual freedom to speak, he has no time for finance.
His evil bankers handle that side of the biz..
oh. my. goodness. another Vatican financial thread. most of the Vatican's is in RE. In Rome
Jefferies may rescue battered FXCM, reports say
Like a vulture rescues a carcass ?
Not just any vulture, but a turkey vulture.
Cathartes Aura, the Golden Purifier. . .
sniffs out the stinking dis-ease, disposes of it so that others might not be poisoned, thus performing a necessary service to the extended "community".
whilst being demonised and reviled, in favour of more "fluffy" pretties. . . heh.
I can't help but think this Swiss de-linking has to do (amongst other issues) with Russia and China making a definite break from the dollar hegemony. TPTB ran into an unforseen snag and are starting to move the their pawns around in different configurations on the board. This latest move involving the SNB is just part of it.
Unfortunately we will probably never know what their plans are for us. I feel we will be lucky if they allow us to live at all.
I think that you are right and the swiss may see their long term value as a broker and private banker as the power shifts east. If this is the case we may see them less and less cooperative with the US gov etc and doing more with China and Russia.
Their private banking was based on secrecy which IS GONE NOW. They lost that in a chess game with the IRS. The world has learned that if you want private banking now, you go east to Hong Kong.
The swiss made themselves irrelevant with that cowardly retreat.
... "What Really Happened At The SNB Yesterday" ...
... someone yelled ... SoNofaBitch ! ...
the SNB is a Rothschild bank, that may have something to do with it.
a peg using 50% euro and 50% $$ makes no sense at all. the euro is dying the $$ is next.
jordan always looks like he just p*ssed his pants. really not a very convincing man for the job. he just had to backtrack on his 'we will do whatever is necessary to defend the CHF' BS he had spouted recently. he is just a pawn.
there probably was a deal with the ecb, will we ever know? maybe.
even with the -0.25% interest rate, cash was piling up at the snb. this is old news. so the -0.75% rate in anticipation of the GR's bailing out of the euro was a prudent move.
"he just had to backtrack on his 'we will do whatever is necessary to defend the CHF" -- bingo, precisely why "C" is the correct answer.
He better stay away from any home improvments...
re: Jordan: 'we will do whatever is necessary to defend the CHF'
sounds a like the famous quote by President Jose Lopez Portillo "we will defend the peso like a dog" just before the big Mexican devaluation of the peso
This is like the collapse of Lehman. It's not so much what happened as it is what it means is going to happen. I think (D) sums it up. The ECB is about to do a massive QE, and if the SNB had tried to hold the peg any longer it would have been overwhelmed. The SNB has folded its hand (which had only a pair of deuces) because it knows that the coming river is full of wild cards.
Hey, you know that hyperinflation that hasn't showed up yet? Get ready.
Heh, hyperinflation....
I'll take that bet all day.
Been hearing about the coming hyperinflation for oh 5 or 6 years here, still waiting....
I think E has potential.
Agreed. This had nothing to do with the gold referendum. A strong currency (when measured against other fiat) does not bode well for a gold backed currency argument. Now if the Swiss Franc had collapsed then 'C' would be the correct answer.
SNUBbed
h) is most likely scenario
repost:
don't think the swiss cb did this(and did not inform the western banks) because of the fucking from the IRS and forced new bank regs, killing a banking business that was once the safest place for money?? no no
I don't think this was payback either..cry Lagarde cry.
Being a bully is great......while your power lasts but you make a lot of enemies, and eventually the chickens come home to roost.
ahhhaha ... makes some sense.
Fuck me? ... fuck ME!!? ....... NO! ... ... FUCK YOU!
Just like the entire media jackoffs, they were banking on a hostile BBRY takeover yesterday under false pretenses. SEC is in a state of porn chafing noises of crickets. When is the last time we heard about the SEC taking down an HFT illegal trading firm? Bernie Madoff?
(e) sounds good to me, but most of all I think a lot of the vampire squids were free-riding on the peg (as they've been doing to Janet & The Fed), and SNB just got sick of it - and who knows, maybe set up some buddies to front-run their move.
Did his wife get the nod to sell a little eurchf before? bunch of crooks. Lets see which hedge funds miraculously made money yesterday... every hf has been short chf for ever. If any of them that made decent money yesterday they most liklely would have had the inside scoop.
Whatever scenario it is, even if it's one we don't know the details of, a "free" market is something that MUST NOT occur. Any one of those scenarios is wrought with oversight, control, and manipulation.
Just proves that the banking sector is falling apart no matter what attempts are made by the insolvent members to fool and alter natural market forces.
So naive. But hey, when you're broke, you have nothing to lose. Witness insolvency in action.
I think the conversation went more like this:
Jordan: Ok guys, the speculators all lined up for the slaughter?
minion: yeah boss, CHF shorts at 12 year highs
Jordan: 4x hedge in place?
minion: yeah boss we cornered the market on CHF/USD long and EUR/USD short contracts, gotta say I'm relieved we doing it now, margin account almost exhausted.
Jordan: been a busy 6 months eh?
minion: yeah boss, ready to turn around and cover on the EUR shorts on your say.
Jordan: a little on the side for me?
minion: yeah boss, we shorted some of the major IBanks and Forex brokers in an unmarked swiss bank account, here are your numbers...hehe
Jordan: hehe..ok pull the plug (or should i say peg) and let the firework starts...I love it when a plan come together!!
minion: good one boss, hehe...when do you want us to launch the EUR/USD short smasher?
Jordan: patience my young apprenctice...lets not get greedy...hahaha
That my friend is a complete plot for a novel.
Add a few more lines, a few more criminals here and there you've got yourself the next bestseller!
Calm down everyone. This is nothing that a little more printing of money won't resolve. Keynes was right after all!
lol!
Buy Canon and Xerox calls then!
Aaaaaaaand.... IT'S GONE!!! Thank you SoNofaBitch!
Great timing to sell CHF on vacations :D - Or, BUY GOLD! Just sayin'
I'll take:
h) because it benefitted ubs and credit suisse to do so.
OK this round of Monetary Poker seems to be over, and Super Mario won this one, after the SNB tried to draw to an inside straight and lost the pot.
NOW there is nothing left to do but clean up all the cigarette butts, and put a new green tablecloth on the betting table. Super Mario gets out the EuropeanZentralBankStaubsauger (EZBS) to hoover up all the European Debt Rubbish (EDR's as opposed to "SDR's"), and declares that deuces are wild and the next round will be QE-EuropeRules. Yellen antes in with an initial bet of 100B USD.
"Money as a technology" meet "money as a margin call".
All I know is that negative rates are wildly bullish for gold demand in Europe.
Yup a depreciating fiat NIRP makes an appreciating gold ZIRP look peachy.
Suspect it became apparent that ECB planned to backstop Greece to prevent losses as well as QE the european economy. SNB got pissed at the stupidity and saw into the abyss that is the current managent of the eu.
Something pissed them off so bad that the issue of credibility became unimportant. Got tired of sleeping with dogs.
today's rise in the DAX just about covers GREXIT.
its all brick and mortar in Suisseland right? No nail guns right?
The world is moving toward free floating currencies, unmanipulated and balanced by trade. The Swiss are now in line and when the ECB declines to enter the bond market it will get interesting. Draghi must protect the Euro. Massive QE would not seem to be in line with that mandate. My guess is that he will tell the various European Socialist Paradises to get their budgets straight and stop with the infinite spending. It cannot go on much longer without something breaking and he cannot let that thing be the Euro.
The dollar is toast, the Euro must survive. The countries of the EZ wil have to do this (budget balancing) sooner or later anyway. Perhaps now is the time. The Swiss are just doing the same and allowing their currency to float to it's proper level. Maybe this is actually going to finally happen now.
As soon as Draghi tried to lecture the Club Med, they would immediate walk away from the EUR and their liabilities in EUR.
One can only hope that happens. The dollar is toast, and the EUR in its current form is toaster.
By "socialist paradises" I guess you mean debt slaves?
ECB told German politicians what they were going to do. German told Swiss buddy. Buddy told Swiss CB. Panic took hold.
It all revo!ves around people and their need to gab.
ECB can yap all they want. Every German politician should know that the ECB has no power. But even if there had been such a rumor, the SNB wouldn't have believed it anyway.
"but isn't the entire edifice of the world's markets 'fictional' where truth is stranger than any fiction one could have imagined just 7 short years ago"
Before that:
The fantasy of sub-prime
The irrationality of the new internet (pre-1999)
.............
Tulip Mania 1600s Holland
The markets only have a vague sense of reality, whats new.
Just when the mad bankers tea party is really swinging those fundermentals come along and ruin everything.
Black swan alert .... black swan alert .....
Fundermental coming over the horizon.
NINA - no income no asset mortgages are defaulting.
i think something is coming too. the swiss know about it and have enough control to quickly move on it, or broke the banker pinky swear code.
i will be watching from the foretops for foul weather, as i have been for years.
.
Isn't there some mysterious person in Belgium that can buy all of the euros that SNB will no longer be buying? Wait till SNB starts selling their balance sheet.
There is.
We've been screwing some folks.......
It's probably not a very mysterious reason they Let go of theneurchf peg. I would guess the ECB told the snb that from next week on, the ECB is going full in with european qe, worth 1000 billion euros. This means they cannot hold the eurchf peg, because it will mean they have to buy even more euros. So they quit. They are not stupid, the swiss.
Yes IMF’s Christine Lagarde says she was surprised she was not contacted by the Swiss. Lets get real. She has no credibility and could offer nothing to the world of finance since she is a lawyer with ZERO economic experience. LOL
But she knows numbers!!!! She is a cabalist and numerologist!
Bankers are being suicided in Switzerland all the time. Thomas Jordan has made himself a target unless... the cabal told him to do it and then pretend they didn't know.
Good article. I'm sure they considered the numerous companies that would go bankrput as a result of their sudden action instead of some subtle signal to warn markets.
I guess they did not care. But defaults and bankruptcies tend to be deflationary due to destruction of money and the EU is already fighting serious deflationary forces. Add to that Japan's exporting deflation and I'm not sure of the result.
So basicly they didn't want to blow up the world until they mades sure the gold issue was over with because that would highlight the need for gold.
While I scarcely understand the dynamics of FX, it's obvious the Swiss were quite reluctant to continue that peg at 1.20, so I'll go with a combination of (a) and (d). Makes the most sense if one wants to consider the implications of parity between the Euro and the US$.
From where I sit - somewhat on a fixed income + extra whenever I feel like working - most US assets are overpriced, but European assets are overpriced-ier, so a cheaper Euro is ideal, even if it does fall right into the NWO one currency scheme.
Friends of mine who travel to Europe pretty consistently (one of who is actually native German) say everything - from toilet paper to RE to food to any retail product - costs more in Europe, even in the peripheral countries like Italy and Spain (leaving Greece off the list for obvious reasons).
Whatever the case or the cause, put the BIS squarely behind the "surprise" move by the SNB. The balancing act between the Euro and US$ may be complete by summer for all we know.
Then what? That's a good question for which I have no answer (meanwhile, silver, if it closes today at anything over 17.65, will be the best close since Sept 24, 2014 - 17.76), except that it bodes well for PMs in general. Something is surely in the works and methinks it has much to do with ECB bond buying (OMT).
So what you are saying is that the official electronic exchange rate is basicly bullshit at the real economic level and none of this pegging nonsense ever did a dam thing outside of banker fantasy land. I am truly shocked that this number I see on my screen is completely divorced from reality. Shocked I tell you!
All of them look possible, can I either 1) ask the readers, 2) call a friend, or 3) 50/50 chance?
Meh', me-thinks someone just figured out how to make a shit-load of money and "influenced" the right actors to get it done.
I keep wondering how Soros made out.
You know what the crazy thing is? It's only going to get crazier.
The walls come a' tumblin' down.
This is great.
Wait until after the Greek election and all those CDS get fucked.
payback to bullies is a bitch
Some people think fondly of Switzerland... James Bond and Hannibal Brooks films, where this neutral country was a saviour for all those threatened, either in body or bank account, to venture there and be saved (financially)...
This - Euro limit removal stuff, is Switzerland taking back their sovereignty, their place of power-in-neutrality throughout history – they are not soft, they are clever and wise, having banked on EU stability and a greater power... Erm sorry, wrong bet now, I guess not!
But as the pundits have said, this does not bode well... It means EU as a power or influence, is worth much less than Switzerland and maybe getting lesser-er! (No offence to Switzerland, love your cheese, the Champions and skiing by the big fountain). But this is the canary in a coal mine!
We hear of massive FX losses but the CHF longs won big. We never hear about the massive wins. Know these and know "what really happened".
www.roacheforque.blogspot.com
Those theories are either ridiculously one-sided views or even fall short of getting to the core issue(s).
Actually the line
Jordan looked like a red-faced school boy caught with the hand in the cookie jar
makes it look like a poorly concocted propaganda piece.
Is that the best the web/blogosphere can come up with?
I believe it did have to do with gold, though not in the way mentioned. Simply pull up charts of gold in USD, Euros ans CHF (Swiss).
While gold has increased nicely since they had their vote, if they want to buy the 1,500 metric tons, its heavily Discounted, this way, but only for the Swiss.
Keep in mind they would have also had to maintain that 1.20 Euro mark at the same time.
For all we know, and it would be very smart on their part, they could be buying. If their goal is really 1,500 Tonnes over 5 years, its now much cheaper for them to do, plus a select few who know the real plan can also make Personal account Gains at the samme time.
What he said.
You forgot to mention that most of the corrupt europoliticians have some of their money in CHF in Switzerland, including Greek politicians.
one theory, duh
They were sick of being pegged to a dying currency
Story sounds perfectly possible. Exactly in bankster style thinking.
I am still not so sure about Draghi's bad bank/slush fund. Is it to safe Deutsche Bank? If so that is a bad sign.
Even more so if Greek bonds would be avoided in the QE shadow bad bank shenanigans.
tears open envelope
The correct answer is 'E'
When the Swiss pegged the franc to the euro 3 years ago, it was measure to prevent the franc from doubling, tripling, quadrupling in value when all the winners of the 2008 Redistribution of Wealth began to look for a safe haven for their spoils.
Clearly, the Swiss -- along with most everyone else -- had no idea what a steaming pile of crap the EU economy was.
When the Queen of Spades in Washington proclaimed sanctions on Russia, which prevented the EU from exporting to them. Then the Spade of Queens ordered that ruble be beaten down, which meant Russians were prevented from touring the dwarvish nations (and Putin embargoed food), that steaming pile of crap went on life support and Obama, Merkel and Cameron had to give it mouth to turd resusitation.
The dollar had been increasing in value since February 2014 (Stanley Fischer) to make the EU exports more attractive.
But apparent that aid to their economies was not helpful enough. And the Swiss needed no prodding to cut their ties with the euro, thus weakening it more and help to sell its exports
If the solid, strong, remarkable, but naggingly weak global recovery ever engages reality, maybe the Russians will returning to the Savoy and the George V.
Until then the euro is running like gutter water into the same sewer where it formerly banished the hyvernia and the ruble
Your imagery seems to fit in well with bankster moral sensibility.
My worry is that this neverending phony recovery is nothing but the segue from the 20th century bankster economy to the 21st century government economy of Oceania, Eurasia, and Eastasia.
With the unwelcome help of the escalating terror of ISIS, al Qaeda, and Boko Haram.
It had to be demoralizing coming to work week after week buying billions of freshly materialized Euros while watching Euro issuers immediately trading Euros for real gold and real stuff knowing full well they* were just printed out of thin air.
trade failuers next
The Swiss have to be neutral therefore no currency pegs. When the Russians start toward Ukraine and also moving into Syria, no self respecting banker wants their assets anywhere except in a Neutral, secret account banking system.
So the Swiss say "apologies" to the Fed and go back to secret accounts. Negative interest rates are the tell. What are the storage fees for AU in the Swiss banks versus negative interest rates for cash Francs?
Very good point. Gold storage fees are negligable, most people do not use banks, but non-bank storage facilities, NOT subject to FATCA (haha fuck you USSA)
So this article suggests that a strong currency is very bad, because to depress the exchange rate, the central bank can print money and go shopping in the world and buy real assets like shares and gold, but also foreign FX and debt.
Indeed, a growing account thank to trade balance surpluses is sooo bad!
This article doesn't even differentiate between QE of a country with positive (Switzerland) or extremely negative trade balance (USA, UK). It doesn't differentiate between a country with decent levels of debt and is de facto buncrupt (Japan).
And it even got the facts not correct:
The announced CHFEUR peg was a vocal intervention. It pressed the CHF down. So it helped the SNB to print less money to achieve a lower exchange rate.
With the removal of the peg, the CHF appreciated, so the SNB needs to print even MORE CHF to depress the CHF than before, to keep it at 1.20.
So the argumentation doesn't make sense.
The SNB simply saw, that it needs to gain it's freedom and flexibility back. Which they have now. They can print more, or less, just like they feel is good for the country. The balance sheet of the SNB consists of foreign assets and has not been balloned to give free cash to insolvent banks, liek the Fed or UK does. The Swiss QE is purely an exchange rate operation and therefore the growing balance sheet can also easy be reduced, once the Franc should depreciate too much.
The FED has only roughly 120 bn USD of FX reserves. there is not much foreign FX reserves they could sell, if a Dollar crisis would happen. Completely different to the SNB, which sits now on billions of foreign reserves and dividend paying companies and can buy even more of them, if the Franc appreciates further.
Whoever thinks it's a problem to have a growing surplus in REAL assets from all over the world, instead of a balloning balance sheet of the own insolvent government, should go back to school and learn the basics.
You covered a lot of issues. But bottom line, the Swiss cartel could no longer thwart the marketplace. Switzerland, after 3 years, did not as an economic society, adjust and therefore the financial plan became a failure.
Issues like the reserves of the Federal Reserve have no place here. The Fed is not legally responsible to direct the value of the currency (elected Govt is), the USD has a special place in international trade making its defense different than all other fiat and most importantly, the military card (for better or for worse) backstops everything.
Lastly, I don't understand how you equate fiat transfers to Switzerland as being "REAL assets". Fiat by definition is a liability to the holder. Switzerland has no leverage to collect on its USD$ holding (not trade or military).
The way I see it is that the Swiss people can now buy more gold than before, so they can still be winners. Everything else is paper thin.
Exactly my line of thinking.Suddenly any currency looks saver than the dollar, and the carpet will be pulled from under the dollar. With that strong currency you buy up as much gold you can get your hands on. This could be of an evil genius nature.
This is the first break from Bankster Unity, and they're all watching each other now with shifty eyes and itchy trigger fingers. Sounds like the music has just stopped and the SNB was the first one to sit down. Whose next.....?
or a bloody huge shite sandwich is about to be presented to be eaten and the swiss politely declined to eat their portion.
CH has NEVER been a member of the globalist club. They wanted to be exempt the way the Harvard faculty wanted to be exempt from Obamacare. Hence the decision to cut CHF loose from the euro. Small swiss businesses (the majority) will not care. People in border areas, like Thorgau, who do their shopping in Germany will benefit from a stronger Franc. EU expats working in CH and getting paid in CHF will celebrate. Multinationals will not notice, their subsidiaries are incorporated overseas. Mid sized exporters will suffer short term, and will develop work-arounds. A strong currency is a good thing for a soveriegn nation. Fuck Wall Street....and the hedgies....
CH will be forced to join the club - unless the people wake up and stop this madness. Circumstantial evidence is there, and removing the peg is a very important one, that globalist-elitists already have infiltrated the political system to turn the once independent country into just another country of the European Union. Look at how the politicians have acted the last years, look at how Brussel already behaved like Switserland was some country they could force their will on. Connect the dots.
More muppejts I expect some gold men and those who captyre vakye jb========= j= kniwb =----f======== j jkniwbb as Sac===hs wuikk h hy== jsust gio.
The consitution doesn't seem to matter anymore when those who uphold don't. I don't take comfort in the fact that we have a constitution anymore.
The ecb won't come with QE, many northern euro countries don't want more debt.
The euro zone needs a lower euro to help the southern economies, that's why the SNB let go of the peg. (which they would not be able to maintain if the ECB QE-ed in any case)
I object.
QE is pretty much a done deal since the hyenas are already shifting their money from the US into European stocks and the markets there obviously are setting up for a series of new all-time-highs - except the swiss.
So I am pretty sure to see $eurusd below $1 and Dax exceeding the 11000pts within weeks.
I just wanted to say two things
Firstly, I think this change is a historic and significant one, and the consequences will be felt for some time. We may even be able to work out the real reasons for it some day. It feels like the start of something bigger.
Secondly, the comments on this post are some of the best I have seen here in a long, long time. A lot of good opinions well expressed. I still read ZH in the hope of brain food like this, thank you all.
+2
.
.
Seems like everything that is happening is just another distraction from what is really happening. Gee, what oh ever could it be next to steer the herd mentality towards MOAR FEAR and the overall babylonian plans to kill the world economy? Will that happen before or after some kind of other off world type event happens or even worse, moar stupid war? Just what the heck is really happening anyways??
X-22:
https://www.youtube.com/watch?v=1_My3RrOTZQ
Friday night extra credit PCR class:
http://www.paulcraigroberts.org/2015/01/16/ruin-future-paul-craig-roberts/
Anyone else notice that sun frying the brains of the could care less crowd out there?
ALL TERROR EVENTS ARE SPONSORED AND PAID FOR BY THE GOVT BABYLONIAN BANKSTERS AND SUPPORTED BY THE STOOGE PUPPET POLITICIANS!
Gonna chase those crazy baldheads out of town!
https://www.youtube.com/watch?v=eqysOK95E6A
?LES DIABLERETS.
ra ra ra
. this is always the way...short term gains (for those on the other side) and long term pain for the swiss economy... the "markets" are working with the assumption that directional swiss (much stronger right now) is all that anyone needs to think about..well for the swiss...a very strong currency means oss of exports, loss of competitive position and everybody else (germans, italians and french) with a huggggggge advantage at the margin of production and labour...
unfortunately ..a) the swiss economy though important is small b) the swiss economy has no especial right to be a better banker, pharma, chocolate or watch maker so that's toast...c) lots of fifnancial engineering to cater for peripheral swiss economies (hugary, czech republic, austria) based in swissy is now ....toast..but all this is a side show for what the ECB under a corrupt italian ex goldman sachs banker plus all his PIIGS cheerleaders will do next...France is the "swing" european member state because if encapsulates all of europe's "foibles". the swiss are a sideshow..Italy should be massive but is where Draghi comes from and believes every solution for its "black economy" can be resolved with a devaluation of a currency..right now onl the Euro exists..(Greece is the same)
the tussle is ...free lunch, whatever it takes, its only a game...euro...v germans, dutch and finns ..with..you can only get what you work for, there's no suh thing as a free lunch..and why the fuck should i pay for you to import hookers from albania?
bazooka joe from ecb is coming...it will be the last fart in the wind of "i can convert all your fiscal deficits into zero liabilities at the government level by printing cash..plus i can also control all your corporate debt markets the same way"
this is the last hurrah and it is epitomized by negative rates...how absurd is that...when people (across the whole of europe) wil just withdraw bank notes and keep them close....
the ECB, SNB, BoJ are scared shitless that they are causing deflation, rather than curing it...and the solution is to convert assets into bank notes rather than equity markets..
Fucking pleez...this event is a pimple on the ass of fiat currency. Wake me up when they peg their pecker to gold.
Rather - or better: highly -unlikely.
More likely is that powers in Switserland are going for a ditch of the Swiss Franc, taking the Euro as currency. Within the political circle you already can find a lot of supporters of the 'European Idea' and there are some groups actively and steadily supporting the idea of 'Swiss is Europe', not suffering a dry-out of cash over the years obviously.
They won't need the gold peg. All of Europe is going to park its wealth in Switzerland, now more than ever. The banks are capitalized unlike so many of their European and American counterparts. Swiss banks will be swimming up to their eyeballs in capital.
Rest of Europe including UK and Germany is fucked.
Germany will bail out of the Euro in Q1 2015 is my prediction.
I do agree here, and the Euro-decision will come when bucketloads of cash has been parked in Switzerland. I don't expect it to happen this quarter, but maybe we'll see some developments pointing in that direction the next quarter.
Play the volatility...
http://www.globaldeflationnews.com/how-to-tame-the-volatile-financial-ma...
The EUR is de facto done now. There is absolutely no reason to keep the currency. Wages and markets are already completely distorted across the European landscape and cash is driving up mostly German real estate to the point where tenants are no longer to afford the rents. QE would be like the nitro glycerin fuel equivalent to kick inflation into the stratosphere and at the end of the day, a new currency would have to come anyway when even wheelbarrows won't do.
SNB KNOWS that 2015 is the end of the EURO. SNB is cutting its losses but at least, SNB is now preparing a safe haven again where all of Europe will hoard mountains of cash.
2015 will see WEIMAR redux on a grand European scale or it will see a swift breakup of the Eurozone with the introduction of 2 or more new currencies.
I'm invested in wheel barrows.
WILL Switzerland JOIN the EURO?
Was it the first step of SNB to produce chaos? Can they survive or wil CHF be sqeezed to death?
more:
http://tersee.com/#!q=snb&t=text
What happended -one other person's take:
The Swiss realised the Germans are finally going to split from the Euro.
They are going with the Deutschmark, their biggest trading partner.
They don't need France (shortly to become a failed state), Italy, Spain .... Greece.
I'll take "C" for $1,000 Alex...
None of the above. The SNB had to cover their gold short position which they've had since the top in 2011.
https://www.bullionstar.com/blog/koos-jansen/guest-post-i-have-a-theory-...
Now the Swiss will go long and start buying.
Belgium guards possible terror targets amid manhunt
Police across Europe arrested more than two dozen suspects as security forces there try to prevent more attacks. A manhunt is underway in Belgium for three people believed to have trained with ISIS in Syria.
Soldiers are deployed in Belgium amid tightened security in many European countries after last week's attacks in France and anti-terror raids.
latest:
http://tersee.com/#!q=belgien&t=text
And the Swiss may not like the diktats of a bunch of schwartsez from Washington interfering in their banking/tax business so some payback here.
If the Euro is on it's way out as IMHO, it should:
Then what is likely to happen is that Mario will pull down his pants and do a QE very soon.
As usual this may keep the Euro going for little longer before it is finally discarded by one country after another starting with Germany.
The Swiss saw the writing on the wall and decided that they want no part of this. And decided to delink their Franc.
This Tyler, is my humble opinion.