As Stocks Plunge, Swedish Central Bank Holds Extraordinary Meeting, Says Will "Instantly Intervene" If Necessary
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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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.
Volvo's and chainsaw motors. Shit they probably offshored those jobs too time for a google search...
Awww… Poor Sweeds!
Their whole Sovereign Fund is invested into Fapple and Foogle and it is melting fast! ;-)
Looney
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.
Trade any husquvarna saw for Stihll, they run and start in the forest, even when they are warm..
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! :)
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."
http://swedenreport.org/2015/06/02/goodbye-sweden/
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.
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
Free Julian Asange... you pickled herring sucking fuckers!
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.
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.
They sold Volvo to the Chinese about 4-5 years ago from memory.
I thought Volvos were made in China now.
You'll know its bad when they start exporting their women like Russia did in the 90s.........
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.
We need a website that can put fleeing European women in touch with men in the US.
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.
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.
<< 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.
Another couple for me please,
These ones: http://i178.photobucket.com/albums/w248/jack_Ramone/nadosincro.jpg
http://fortruss.blogspot.com/2016/01/wolf-messing-predicts-collapse-of-u...
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.
That's because "Americans" are now an ethnically different people.
"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
Ya....you know where they will go.
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.
wow their single largest export is female external genitalia?
beef curtains
ham wallets
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.
France at 10% is number 1. Sweden and Germany at 5%.
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.
>>> Its sad really.
It's karma on a societal level. You could even say it's beautiful, in a schadenfreude kind of way.
They are "safeguarding inflation".
Let that sink in for a moment.
About 2% seems to be that Goldilocks number where nobody asks to where their money is disappearing and they just graze on.
Euphemism for 'safeguarding confiscation'
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"
This.
Oh Maaaannn,,, beat me to it,
They actually require PhD's to say this stupid crap!
So what happens when everyone is "safeguarding inflation" at the same time?
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.
Orwell would be proud.
But....but....Scandinavian Socialism model.....my feels!!!!
Sweden is screwed.... bring in more muslims
At least they admit they'll intervene.
Meanwhile out-of-control Swedish house price appreciation is not considered as inflation. Go figure.
[BTW this wasn't all that long ago: https://en.wikipedia.org/wiki/Swedish_banking_rescue]
Tylers, we need the Deer!
https://ixquick-proxy.com/do/show_picture.pl?l=english&rais=1&oiu=http%3...
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.
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.