As Stocks Plunge, Swedish Central Bank Holds Extraordinary Meeting, Says Will "Instantly Intervene" If Necessary

Tyler Durden's picture


Markets have started 2016 with a healty dose of turmoil, and so many were wondering how long - and who - would be the first central bank to intervene in either directly or verbally in markets.

Moments ago we go the answer when Sweden's Riksbank announced it has held an extraordinary monetary policy meeting in which it took the decision required to be able to "instantly intervene on the foreign exchange market if necessary, as a complementary monetary policy measure, to safeguard the rise in inflation."

This is what else it said:

The decision involves the Executive Board entrusting to the Governor, together with the First Deputy Governor, the task of deciding the details with regard to possible interventions.
During 2015, the Riksbank has cut the repo rate to –0.35 per cent, adjusted the repo-rate path downwards and purchased large amounts of government bonds and also announced additional purchases during the first half of 2016. However, since the last monetary policy meeting in mid-December, the Swedish krona has appreciated against most other currencies. If this develop-ment were to continue, it could jeopardise the ongoing upturn in inflation.
The Riksbank has no target for the exchange rate, but the krona's value in relation to other currencies is an important factor in the inflation forecast. Inflation is rising but has been under the target of 2 per cent for a relatively long period of time. To safeguard the role of the inflation target as benchmark in price-setting and wage formation, it is therefore important that inflation continues to rise.
The Riksbank still maintains a high level of preparedness to take other monetary policy measures in addition to the currency interventions if this is necessary for inflation to stabilise around 2 per cent. The repo rate could be cut further, the securities purchases could be extended and the Riksbank could lend money to companies via the banks.
Deputy Governor Martin Flodén entered a reservation against the decision. He thought it appropriate to wait before implementing any further monetary policy stimulation and did not consider currency interventions to be a suitable tool to make monetary policy more expansionary in the current situation.

And now, we sit back and wait for some of the "real" central banks to follow suit because this aggression against manipulated asset prices will surely not stand. 

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Mon, 01/04/2016 - 11:07 | 6994999 Haus-Targaryen
Haus-Targaryen's picture

You want to talk about a completely fucked country?  Lets talk about Sweden.  

Highest Muzzie population as a % of population, even exceeding the French, English or the new-to-the-game Germans.  

Their single largest export is Volvos, which has been on the chopping block for years.  Ikea is doing well abroad, but keeping most of its cash out of the Swedesh government's hands (for obvious overnight reasons).  H&M is doing well, but that 13€ Halter Top isn't going to feed Muhammad & his 150,000 friends this year. 

Sweden, unless it gets pretty radical is completely fucked.  Its sad really.   

Mon, 01/04/2016 - 11:07 | 6995013 Global Hunter
Global Hunter's picture

Volvo's and chainsaw motors.  Shit they probably offshored those jobs too time for a google search...

Mon, 01/04/2016 - 11:09 | 6995023 Looney
Looney's picture

Awww… Poor Sweeds!

Their whole Sovereign Fund is invested into Fapple and Foogle and it is melting fast! ;-)


Mon, 01/04/2016 - 11:13 | 6995035 Global Hunter
Global Hunter's picture

I think they still produce chainsaws in Sweden, probably the professional series ones I was trying to look it up.  I think mine was made in Sweden, so they have that.

Mon, 01/04/2016 - 11:35 | 6995130 Calmyourself
Calmyourself's picture

Trade any husquvarna saw for Stihll, they run and start in the forest, even when they are warm..

Mon, 01/04/2016 - 11:41 | 6995161 Global Hunter
Global Hunter's picture

Appreciate that, a few guys I know swear by Stihl.  I have also seen Stihl equipment in Pawn Shops and the saws keep a lot of their value around here!  :)

Mon, 01/04/2016 - 13:57 | 6995845 Buckaroo Banzai
Buckaroo Banzai's picture

Goodbye, Sweden

"I am leaving Sweden for good shortly, and will no longer be following its descent from what was once the third most prosperous country in the world. Frankly, it’s just too damn depressing."

Mon, 01/04/2016 - 11:42 | 6995162 COSMOS
COSMOS's picture

If they would intervene that fast to protect their borders then we might be talking.  As it is the country as a whole will go down the shithole no matter what their central bank does.

Mon, 01/04/2016 - 11:50 | 6995196 Ghordius
Ghordius's picture

cosmos, don't tell me you missed the news that Sweden closed it's borders to further refugees. I can here the Danish sniggering from here

Mon, 01/04/2016 - 12:21 | 6995360 Dame Ednas Possum
Dame Ednas Possum's picture

Free Julian Asange... you pickled herring sucking fuckers!

Mon, 01/04/2016 - 11:52 | 6995204 Pemaquid
Pemaquid's picture

Husquvarna, I have been told, changed the oil and gas ratio to comply with EPA air emissions standards. Ignore the recommended ratio or loose a piston, as I did. My replacement Husky runs on 30 to one with no problems.

Mon, 01/04/2016 - 14:04 | 6995881 Jack Burton
Jack Burton's picture

My favorite fishing reel was made in Sweden since I was a kid. The recent one I bought said "Designed in Sweden" I looked on the back and in fine print, "Made in China". Until then, they had always had "Made in Sweden" on the front of the box. Not now.

Mon, 01/04/2016 - 14:22 | 6995939 Dame Ednas Possum
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They sold Volvo to the Chinese about 4-5 years ago from memory.

Mon, 01/04/2016 - 18:59 | 6997352 TheDanimal
TheDanimal's picture

I thought Volvos were made in China now.

Mon, 01/04/2016 - 11:08 | 6995019 kliguy38
kliguy38's picture

You'll know its bad when they start exporting their women like Russia did in the 90s.........

Mon, 01/04/2016 - 11:12 | 6995028 Haus-Targaryen
Haus-Targaryen's picture

If Germany wasn't completely slitting its own throat right now --- I could imagine most of those Swedes would be heading South to Germany.  Now -- no idea where they'll go. 

Mon, 01/04/2016 - 11:20 | 6995060 Jethro
Jethro's picture

We need a website that can put fleeing European women in touch with men in the US.

Mon, 01/04/2016 - 11:22 | 6995071 Haus-Targaryen
Haus-Targaryen's picture

I imagine they'll be fleeing the United States soon thereafter.  If you think the US can go through a USSR style financial & world power collapse, and still be the "Golly Gee Wiz" & Apple Pie kind of environment you grew up in -- you would be gravely mistaken.  

Mon, 01/04/2016 - 11:28 | 6995097 Jethro
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I'm under no such illusion. I am however, relatively well armed and trained, and in live in a rural setting. My odds are better than most.

Mon, 01/04/2016 - 11:47 | 6995184 CheapBastard
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<< You'll know its bad when they start exporting their women like Russia did in the 90s >>


I'd like to put an order in for two of them please. If twins are available, that's ok.

Mon, 01/04/2016 - 17:28 | 6997011 johnconnor
johnconnor's picture

Another couple for me please,

These ones:

Mon, 01/04/2016 - 11:46 | 6995181 Haus-Targaryen
Haus-Targaryen's picture

Sorry, I don'T believe in any of this hocus-pocus bullshit.  

It is simply an unsustainable system.  Any unsustainable system eventually fails.  

Logic, not superstition is the answer.  

Mon, 01/04/2016 - 11:52 | 6995209 Lucky Leprachaun
Lucky Leprachaun's picture

That's because "Americans" are now an ethnically different people.

Mon, 01/04/2016 - 11:52 | 6995207 Ghordius
Ghordius's picture

"We need a website that can put fleeing European women in touch with men in the US"

now this I call constructive thinking. it has little to do with the article, or Sweden, or europe at the moment, but it is indeed constructive

Mon, 01/04/2016 - 11:32 | 6995120 Chuckster
Chuckster's picture know where they will go.

Mon, 01/04/2016 - 14:09 | 6995898 Jack Burton
Jack Burton's picture

Swedes don't need to flee. In fact, Sweden is very uncrowded with masses of forests and lakes, even in the south. Most of Sweden is rural farming and logging, with vsat forests. White people are not stupid, they have begun moving out of the towns and cities and into rural villages and farmsteads, or building new on forest lands near lakes. The exlosion on housing in my grandfather's home village in the last 20 years is huge. Most have left a nearby larger town because the town was targeted 10 years ago to be a major migrant city and center for Islam. Sweden will soon split between Muslim Black suburbs, white afluent city centers and a rural village white population.

It is common for a Swede with any decent income to get out of their city and to a village or rural setting. Sweden is more uncroweded than many parts of America.

Today Sweden closed the bridge to Denmark, you need photo ID to cross now. This is to try and slow the migrant flow.

Mon, 01/04/2016 - 11:09 | 6995020 bamawatson
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wow their single largest export is female external genitalia? 

Mon, 01/04/2016 - 11:39 | 6995153 orangegeek
orangegeek's picture

beef curtains

Mon, 01/04/2016 - 13:53 | 6995835 Buckaroo Banzai
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ham wallets

Mon, 01/04/2016 - 12:23 | 6995375 Börjesson
Börjesson's picture

Haus-Targaryen: No, let's rather talk about getting your facts straight. Largest Muslim population percentage? Nope. Not even close, the French (and the Germans) are way ahead. Volvos? Well, maybe. Vehicles are a big export, but Volvo and Scania trucks make up a large portion of it. I haven't found any numbers for Volvo Cars, which is no longer connected to Volvo trucks, but is now a Chinese-owned company. But anyway, Volvo Cars is doing well and seems further from the chopping block than they've been for many years. And the biggest Swedish company by export value is Ericsson.


Mon, 01/04/2016 - 13:11 | 6995611 sun tzu
sun tzu's picture

France at 10% is number 1. Sweden and Germany at 5%. 

Mon, 01/04/2016 - 18:13 | 6997167 samjam7
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I'm sure the recent arrival of 200.000 mostly muslim migrants aren't included. now how many per centage of th 9 million is that? right more than 2%. I'm sure Sweden jumped from 5 to 7% last year alone. 

Mon, 01/04/2016 - 14:25 | 6995950 August
August's picture

>>> Its sad really.

It's karma on a societal level.  You could even say it's beautiful, in a schadenfreude kind of way.

Mon, 01/04/2016 - 11:04 | 6995000 NoDebt
NoDebt's picture

They are "safeguarding inflation". 

Let that sink in for a moment.

Mon, 01/04/2016 - 11:13 | 6995033 shovelhead
shovelhead's picture

About 2% seems to be that Goldilocks number where nobody asks to where their money is disappearing and they just graze on.

Mon, 01/04/2016 - 14:26 | 6995960 Dame Ednas Possum
Dame Ednas Possum's picture

Euphemism for 'safeguarding confiscation'

Mon, 01/04/2016 - 11:14 | 6995040 Ghordius
Ghordius's picture

indeed. ah, well, it's an euphemism. in this round of the Currency Wars, it's about "not importing deflation", but that's as undiplomatic as "damn other CBs are..."

side remark: undiplomatic isn't exactly the same as politically correct. the two look similar, at times

meanwhile, many central banks have lost a lot of FX, the "ammo" they need when things... reverse. the next round of Currency Wars, the "exporting inflation" or "not importing inflation"

Mon, 01/04/2016 - 11:18 | 6995057 Poundsand
Poundsand's picture


Mon, 01/04/2016 - 11:20 | 6995061 rejected
rejected's picture

Oh Maaaannn,,, beat me to it,

They actually require PhD's to say this stupid crap!

Mon, 01/04/2016 - 11:24 | 6995080 spanish inquisition
spanish inquisition's picture

So what happens when everyone is "safeguarding inflation" at the same time?

Mon, 01/04/2016 - 13:00 | 6995551 ThroxxOfVron
ThroxxOfVron's picture

The weakest and least flexible CBs and national/regional markets are effectively force-fed the globally exported deflation generated by the currency devaluations and manufacturing/export subsidizations/credit in other nations/regions.  



Mon, 01/04/2016 - 16:30 | 6996657 malek
malek's picture

Orwell would be proud.

Mon, 01/04/2016 - 11:13 | 6995036 Jethro
Jethro's picture

But....but....Scandinavian Socialism feels!!!!

Mon, 01/04/2016 - 11:19 | 6995059 Omega_Man
Omega_Man's picture

Sweden is screwed.... bring in more muslims

Mon, 01/04/2016 - 11:22 | 6995075 Bopper09
Bopper09's picture

At least they admit they'll intervene. 

Mon, 01/04/2016 - 11:30 | 6995108 Lady Jessica
Lady Jessica's picture

Meanwhile out-of-control Swedish house price appreciation is not considered as inflation.  Go figure.

[BTW this wasn't all that long ago:]

Mon, 01/04/2016 - 11:31 | 6995115 lakecity55
Mon, 01/04/2016 - 11:32 | 6995119 gcjohns1971
gcjohns1971's picture

Trying to avoid the racial side of it.

But the future of genetic Europeans looks bleak.

And given that they created modernity...and hence the only hope of ever getting off the 3d rock before an extinction event, or the return of mass glaciation...the survival of homo sapiens (or homo monachus, as I prefer to call us) ... looks increasingly bleak.

Mon, 01/04/2016 - 11:49 | 6995195 Lucky Leprachaun
Lucky Leprachaun's picture

It does indeed. To anyone in doubt I ask what would happen if you exchanged the populations of Nigeria and Japan. In a few generations Nigeria would be like Japan and vice versa. We all know that but avoid its implications like the plague.

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