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Here Is How Switzerland Caught Up To The Rest Of The World In Devaluing Paper Currencies Against Gold
There is just one chart that must be seen to appreciate the rationale behind the SNB's action earlier today: the relative performance of any given currency against the absolute: gold. Just like back in FDR times, the only thing that mattered was how to devalue the dollar against the yellow metal, so too now various fiat issuers realize that while they all devalue relative to each other on a step-wise basis, they all must devalue in absolute terms against such undilutable "constant curerncies" as gold. As the chart below shows, the CHF was dangerouly lagging its own devaluation relative to gold, with even the Brazilian Real doing far better, er, worse, in absolute terms. Which is why today's action resulted in a nearly 10% devaluation in the currency against what matters. As for the relative devaluation, well, trade flows will take care of that. Or so the rabid Keynesians roaming the countryside believe. The final take home from the chart is that the SNB still has quite a ways to go in devaluation before it catches up with the rest of the 'developed' world.
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Least appealing horse at the glue factory.
Criminals know no boundaries when it comes to debauching money. Hell, why should they care? The ship sinks without a fight, so better to fight and lose than just accept losing.
At any rate, this ship is sinking fast. Good job criminal banksters. You've entered the realm of demonic, phase 2.
Isn't really just about banksters. It's about centrally planned collectivist governments and the need to keep them going. Currency devaluations, artificially low interest rates, money supplies, QE's are all part of bandaging the beast. Bankers are the enablers...at a price. They are in it together in the end.
Of course. The banks just use others to achieve their goals. But I firmly believe the gov't is too stupid to realize the banks are really running the show, not the other way around.
Can you honestly say someone like Maxine Waters has power and influence over JPM? The gov't is being played.
Just as banks use real estate agents to sell mortgages, but the agent mistakenly thinks he or she sells homes, so too the banks are using money as a weapon to force gov't policy.
Crooked to the core.
Why do you think these scum bags waited for US markets to be open and didnt do this on Monday?
Excellent point Pladizow! Easily coulda done it yesterday.
Q for y'all. Maybe not important. But do you see the CHF peg to Euro as merely devaluing their currency or is it an implicit endorsement of Euro and Eurozone promulgation? Thanks for your views.
Neither. IMO a formal default from one or more of the PIIGS is coming, and a run into CHF needs to be stopped beforehand.
Plausible. Hadn't considered that. Thanks!
No, a EURO-Bond will be created in due time. This action of the SNB just gave the Euro more qualitative control. Just give it time. I'm selling pre-order Euro-Bonds... Anyone in? Come on China and Japan, y'all be the first to load up. The Eurocrats aren't done yet. This party has just begun.
Switzerland was the 1st country to leave Bretton Woods in the early 70's and it's now the 1st country to re-enter a new money system in a sense. So it's both of your suggestions....
Here what I think we are likely to see
1) Japanese are going to peg to the US Dollar
2) Euro going to peg to the US Dollar
3) Gold or a new SDR to be pegged to the US (not sure about the ratio as there's not enough gold to cover the money supply)
4) Nationalization of most (if not every) banks in Europe and the US
5) Money supply will be contained and reassure investors that their paper money is backed by something (SDRs???)
6) China obliged to revalue its currency or the difference will be taken in the form of higher tariffs
7) Obama administration likely to change the job market (those who export jobs are likely to get a penalty while those who keep jobs within the country are likely to get preferential treatement)
Job inflation to be contained by lower energy and commodities prices, China left out, Russia to join the Euro, South America going back into poverty - Africa to stay in poverty - A 10year breath for eastern world to reshape the sytem
The US will also continúe sinking into poverty. The damage has been done and this manipulation is no fix. Remember, one of the main reasons for deindustrializing the US was to weaken democracy ie weaken the middle class. They aré not about to turn around and empower their rivals.
Prison planet, bitchez.
Switzerland was the 1st country to leave Bretton Woods in the early 70's and it's now the 1st country to re-enter a new money system in a sense. So it's both of your suggestions....
Here what I think we are likely to see
1) Japanese are going to peg to the US Dollar
2) Euro going to peg to the US Dollar
3) Gold or a new SDR to be pegged to the US (not sure about the ratio as there's not enough gold to cover the money supply)
4) Nationalization of most (if not every) banks in Europe and the US
5) Money supply will be contained and reassure investors that their paper money is backed by something (SDRs???)
6) China obliged to revalue its currency or the difference will be taken in the form of higher tariffs
7) Obama administration likely to change the job market (those who export jobs are likely to get a penalty while those who keep jobs within the country are likely to get preferential treatement)
Job inflation to be contained by lower energy and commodities prices, China left out, Russia to join the Euro, South America going back into poverty - Africa to stay in poverty - A 10year breath for eastern world to reshape the sytem
If you (wildly erroneously) truly believe that there is currently "not enough gold" to back the money supply, I will await with fascination and baited breath your argument for just how much gold would in fact be "enough".
#3 includes a novice argument, i.e., "...there is not enough gold to cover the money supply."
At what price per ounce?
What measure of money supply - M1, M2, M3?
What if gold was $1mil per oz - Isnt that enough to cover global money supply?
All it will take is a repricing of gold and that is what we are historically witnessing!
"I firmly believe the gov't is too stupid to realize the banks are really running the show, not the other way around."
This is their greatest defense. Ignorance is used as a veil for malice. Yes they make some very stupid decisions, but the end result is always the one that they desired. Sure the banksters are buying them off, but that doesn't mean they're stupid.
>JN 17:39
Re: Assorted gov'ts..
I'm reminded of a phrase:
"Being on the take.."
It's a good thing the swiss aren't self-sufficient, otherwise they could just sit back and in 2-3 years they could buy up everything. After all, there's nothing about going shopping that isn't neutral?
Can someone please tell me what "three taps and out" on the gold diffusion index means?
Much abliged!
Hyperinflation, bitchez.
if in a forex account, you go long XAUUSD and USDCHF, it's theoretically the same as being long XAUCHF. give it a try. if they really want to catch up to the pack of filthy debasers, let's see how quickly they can get there.
http://www.youtube.com/watch?v=B9zk448H69U
time to buy the CHF dip?
how many hours will PM price rise be affected? already AG is picking up.
after all, seems like the SNB hasn't actually done anything other than bluff:
http://blogs.marketwatch.com/thetell/2011/09/06/swiss-estimated-to-have-...
are there any actual figures on how many euros they have bought if any?
Why they're buying unlimited Euros. Which is good, because that's exactly how many will be 'printed.'
What an extraordinary link. The "expert" is telling us how many reserves the Swiss have to spend and postulates that it will "put a dent in their reserves". FFS they are SELLING CHF. That ADDS to their FX reserves. They have infinite firepower if they are prepared to accept the collateral consequences. I cannot believe the basic lack of understanding of how FX intervention works in this thread.
Ignorance, ignorance EVERYWHERE.
I generally don't read outside links. Good job dispelling backwards arguments there.
as i have said in other posts no intervention figures mentioned, just propaganda with the help of CS, UBS, SNB, ECB and DB.
end of story
I wonder how many EUR the SNB has to buy every day to keep up with this "performance"
It can buy as many as it likes. In addition to the one's i'm buying. The CHF is ridiculoussly overvalued on any metric. If it's no longer a safe haven what other reason is there to buy it?
The SNB will be floded by this sick currency...
doesn't answer the question
Over the last year, the CHF was definitely losing the fiat division of the race to the bottom. Look who is winning. USD! USD! USD!
but....it only costs 5 dollars to dig an ounce of silver outta MethMan's ass!!
now we know MethMan is the goatse dude!
Youse guys is always making fun of poor ol' MethMan, but the joke's on you. Rumour has it he has one of the richest silver mines in the world. Total costs only $5/oz! And that's before the gold credits!
lookout bottom...here we come!
That is a beautiful chart.
indeed. Nice visualizations possible this way.
Lets take a look at CHF performance today:
http://finviz.com/fut_image.ashx?relative_d1.png&rev=634509223698437500
Transitory?
Transitory in the since that Stored Value is being transported into silver / gold and or other tangibles at what would have to be an alraming rate for the central banking idiots.
but I thought inflation was and entirely transitory?
It is. It only lasts until the currency is reformed or abandoned.
the term "transitory" requires definition of units of time. Used without time units, the term is abstract at best.
Everything in the known universe that changes is transitory, if you don't specify units of time.
With a little thought, I believe that becomes obvious. What is less obvious, is the relentless obfuscation by financial sophists.
I agree - talking without saying anything clearly may well be a central bankers greatest skill. Greenspan was a grand master at gobbledy-gook. People spent days trying to work out what he meant. Key sentances could be interpreted several conflicting ways depending on your assumptions and perspectives. It's quite an art to sound like you know what you are talking about, but throw in so many double (or more) meanings. Dilbert calls these "weasle words".
All those USD holdings have to go somewhere....
no one debases like the bernank
Yes, When I debase meat and debase it again, it is so much tender.
We're number less than zero! -- We're number less than zero!
Great chart, Hedgeless. Everyone should note that bananas, from banana republics, did no do well and are not even mentioned.
Great chart, Hedgeless. Everyone should note that bananas, from banana republics, did no do well and are not even mentioned.
Nice Grab!!
Damn Nice Chart!!
USD is garbage.
Silver FTW. Can there be any doubt?
F#$& the naysayers cause they don't mean a thing, cause this is what style we bring.
Regression to the bozo
Running in place until Sept 21 QE3 faceplant.
If the USD CHF EUR.. are just paper and the gold is sound money, WHY THERE IS PRICE FOR GOLD IN EUR $ CHF< IT should be prohibited to bye any gold with paper, but wait there is still idots around the world who think gold is priceless.
At least I am earning interest on my Euros in the Irish Post office.................... maybe there is no such thing as currency default risk in this world - the CBs will have none of it , hence the rise in Gold.
In the long run probally much more value is in "Irish" assets on a relative basis if discounting Bank distortions / FX madness etc.
Powers whiskey or Toblerone ? - can I have both please.
www.classicwhiskey.com/distilleries/midleton.htm
Next, US needs to peg against everybody! CNY @ 4; EUR @ parity; JPY @ 100 ... BOOM!
Everyone here should take solace in this. The elites have one option only..to pretend and steal from the workers while they siphon of their production. Also remember the govt is comprised of the people and these overt actions GLOBALLY will mean elections will instill those will bring an end to this madness. We are seeing it now. Most have not found the answer yet but they are searching and all discovering it is central bank planning and corrupt governments operating as agents for business to crowd out small business.
It only take one Black Pterodactyl to end this entire farce. Thankfully the Internet allows for all of these fools to be judged on an unbiased forum of information instead of the state TV propaganda. The first nation to step outside the circle and create a Metals based currency will rule the next century with prosperity and send the rest into a fever of fear that the jig is up. Every nation should work dilligently to create a currency that is most sound and backed by integrity and intrinsic value. The more valued a currency is the greater the ability of the producing citizenry to go abroad and purchase with their just deserved labor and effort.
The morons are trying to do the reverse and it cannot sustain. That is why Gold is acting as the defacto currency but eventually China or Russia or perhaps Ireland or Iceland will step up unlock the door to prosperity by not running with the pack. A nation should desire for their currency to be pardon the pun " The Golden standard" of prosperity because of it's acceptance determined by the markets view of what backstops it and not a totalitarian govt attempting to enforce it's value by stealing from the future.
ALL PIPERS EVENTUALLY GET PAID
You mean, other than Libya, right?
There are now only 5 nations on the world left without a central bank: Iran; North Korea; Sudan; Cuba; and Libya. Make that 4 nations.
Oh thanks. I guess I'll tell my friend who works at the Central Bank of Iran he can stop reporting for imaginary work.
> b4f 15:45
I think what HH was in reference to was : Bankster Cartel CBs..
I believe Venezuela could be added to that short list..
One man's work is another man's fraud and monetary corruption.
The first nation to step outside the circle and create a Metals based currency will rule the next century with prosperity and send the rest into a fever of fear that the jig is up.
***************
You're right on and I believe it's coming-except the first Currency to connect to Gold will happen in a panic and the first one that is forced to do it-will be the one who gives the kiss of death to all of them because this will force all them into Gold-
Central Banks outbidding each other on the open Market causing a massive short squeeze-
I think we should be selling a bit then-
Well said JJ agreed !
Just hope that with a gold concept there is some muscle behind it ! or it might be the never ending theft game.
Well said, McCloy.
aren't the ChiComs hoarding gold...?? put them together with the ruskies and brazil and you may have enought actual real gold to back a currency....
Gold and a lot of commodities against a wall of good paper and lost traditions.
I guess it will work.
While I agree with you in theory, in practice I seriously have to wonder how such a scenario would play out.
Perhaps I have become fatally cynical, but unless circulating gold coins were an integral part of any new state-sponsored gold-backed currency --- and the necessarily near-astronomical price of gold under such a scheme would seem to preclude the possibility of circulating gold coins --- then I have to wonder just how and why any gold-backed, government-issued currency would be trusted or accepted. Yes, they can say that the currency is backed by gold, but without a practical means of redeeming said currency into physical gold, how is trust in such a currency going to be established, particularly in light of the manifest corruption and manipulations inflicted upon currencies by governments over the last several decades, and indeed throughout history?
That's a good question, my man. Trust? ppfffftt! I'd say that it would require a very liquid, gold exchangeable standard with a fractional banking death penalty. Still, it's putting lipstick on a pig. I'm afraid the pig must/will die and a period of barter/tribalism will divide what we have now and any future gold standard.
I read where 40% of the world's gold is held by central banks. How could ANY monetary system with the old criminals still in charge be honest????
> JMC 15:00
Theoretically nice...
Didn't work so well for Hussein / Gaddafi it seems..
Unfortunately the first country to go to a gold standard will bankrupt their export sector overnight. Not to mention their tourism sector. Who can afford to ski the Swiss Alps at these currency rates? This is why the Swiss have acted to devalue their currency. It was already the closest currency to being gold backed and they couldn't survive it in a world of 'weakest currency wins'.
That is a blinkered and fundamentally ignorant analysis. You overlook the fact that by depreciating their currency, the Swiss will also bankrupt their savers and consumer sector, and ultimately EVERY sector of their economy, just as every other fiat-currency-using nation is doing today. No nation, EVER, has acheived prosperity on the back of currency devaluation --- if that idiotic and self-defeating scheme were truly the road to success, then Zimbabwe would be the world's economic engine, instead of the economic basket case that currency manipulation and devaluation actually made it.
Please go back to Econ 101 --- the Austrian version this time.
WRONG. The CHF has been pushed up by idiots looking for a "safe haven". The Swiss economy was on the verge of collapse so the SNB had NO CHOICE. If they wouldn't have done it this "safe haven" would have lost its status anyway - by economic collapse - so the devaluation was a non-avoidable factor.
So, some people lost a lot of money. GOOD. Teaches you not to mess with a country that DIDN'T bury itself in debt, where people work hard and SAVE. Switzerland is not trying to devalue themselves out of debt like that satanic nation called the USA.
"by depreciating their currency the Swiss will also bankrupt their savers and consumer sector, and ultimately EVERY sector of their economy"... Nothing will happen as Switzerland has shown they are not to be messed with, they just brought their currency back to a level that is more realistic. Stocks rose, the export sector is saved. Thank you, and fuck you too.
It's the "Bonfire of the Currencies." It's probably good stewardship to hold shiny spam at least until we know who wins the race to the botton, re:
http://www.sprott.com/Docs/MarketsataGlance/10_10%20Bonfire%20of%20the%20Currencies.pdf
The Fed is out buying stocks again. Lulu up CMG up, Hans up, Soda up, Priceline up, Netflix up, Buffalo up, even travelzoo up.
Way to go PPT!!!!!!
Major volatility in momo stocks today, gee it almost looks like hft algos occilating within a 2% range to sowly build up prices all day.
Almost all the charts look like sine waves.
The chart says it all - Now, the ENTIRE world has gone insane.
These days it's cool to be cheap. Real cheap.
Dollar stores FTW, female dogs!
So it's now a race to the bottom with the Swiss upping the ante today. Fiat failure!
It is pretty funny to watch this race to the bottom.
Everyone running with a huge pile of shit in their pants.
It's considered a compliment these days in cnetral banker circles to say "Hey, you're cheap!"
Answer : "Yeah, I'm a total slut!"
WTF is China gonna do with that data?
Shrug?
On the comex:
If you are a paper short and at the same time a TBTF bank borrowing from the Fed at 0%, why not go "all in" short? Why not just spew an unending torrent of paper gold onto the market, never letting up until you have drivent it back down to, say $1000?
Whats stopping them? If they did it, how fast would the govt bring them to justice for manipulation?
Well in theory you can but then you have a failure to deliver on your futures when smart buyer load up and deplete the inventory of physical in the exchanges...
The Euro has just increased qualatative strength by this action. The Chinese and Japanese want to divest out of dollars and into Europe. Just watch a Euro-bond will be added to the menu of "Guberment Ponzi Pizzas and Subs." Would you like a side of QE with that cockmeat sandwitch?
I am going long Scotch and forever stamps...
(Reuters) - "The pursuit of austerity measures and deficit cuts is pushing the world economy toward disaster in a misguided attempt to please global financial markets, the annual report of the United Nations economic thinktank UNCTAD said on Tuesday."
http://www.reuters.com/article/2011/09/06/us-economy-un-report-idUSTRE78...
So let me get this straight, the former head of the WTO which in no small part is a contributor to this mess, is advocating massive stimulus instead of austerity, why didn't I think of that, lets add a buttload more debt, that'll fix it!
Groupon delaying IPO...Robos cry everywhere.
That goes to show how screwed up these markets are. Groupon has yet to show a profit, last years losses: $450m, they are still trying to figure out how to monetize it into a profit model yet the markets are clamoring for an IPO, makes no sense at all. Friggin vaporware.
Same was true at Amazon for years. But, I do believe in the Amazon model. I think Groupon and Linked In are losers IPO wise at the valuations being bandied about. Just don't see great growth or earnings going forward. And definitely think Pandora is overpriced
those dumb shits were late to the party...should have grabbed some of that linkedin money while they could
hey i just heard that the govt will start a safe haven program for anybody who wants to defy current societal structure/norms in preparation of the fiat system breakdown. the govt offers a fenced in property, barb-wired for our safety, round the clock military guards, free haircuts, 3 square meals a day...hmm................anybody in??
I'll pack my toothbrush.
oh great!!! and there was something in the brochure about free extractions with no cost replacement on gold teeth!!!!! awesome!!!
You forgot to mention the complimentary FEMA totebags, and the matching designer bright orange shirts and pants.
Oh, and don't worry about having to visit any hair stylist or barber before checking in --- rumor has it that the shaved-head look will be all the rage.
govt is garbage.
"Okay, kids we're heading to Camp FEMA!" Yea!! “Hey, they have these devices that put your brain into alpha mode so your cognitive abilities are impaired.” What’s that? O you mean 3D digital televisions....O yeah baby, that’s what I'm talking about.
EURO-BONDS coming soon!
So, here I'm wondering about this strange thing, Western markets open and PMs fall.
It might be that a lot of it it's only West selling and Asia buying.
But today it was really a strange day. Today gold, silver and platinum charts were almost exact copies of each other. How can this happen?
NOwhere to run nowhere to hide but gold and silver. Now that it is getting obvious to all but the densest that the central banks are in a race to debase, the banksters will try and herd the rest of the idiots into bonds because all those financial geniuses know that even though currencies are shakey, certainly US treasury bonds are still the ultimate safe haven. All the banksters have to do next is pull their bids on commodities and the stockmarket ( or actively short) and all the lemmings will panick into the bond. Then they will pull the plug on the bond and all of a sudden everybody will panic out of bonds with nobody buying, while the banksters back up the truck and scoop up the stocks the geniuses couldnt wait to get rid of.
Beautiful! Look at what you can do when you own the reserve currency printing press.( And the SEC etc etc....)
Would be interesting to see where the Canadian, Aussie and Kiwi dollars slot into the graph.
the music is starting to fade...hurry up and grab your seats folks
the BoA is bout to hit the fan
Banking doesn't involve fraud, banking IS fraud. Good thing ABSOLUTE GOLD is independent on any government.