Presenting The Swiss (Black) Loch Ness Monster
We would call the following just released chart of the Swiss monetary base a black swan, if not for two reasons: i) since this is precisely what Philipp Hildebrand demanded it is not unexpected and is in fact perfectly in line with a central banker's wet dreams, and ii) it looks far more like a Loch Ness monster. And while for the time being the monster is tame, thanks to what Kocherlakota said earlier, namely that "the old and familiar link between increased bank reserves and higher inflation has been broken," if ever the global economy were to actually improve, somewhat paradoxically, then the trillions in cash currently parked with banks the world over (assuming they are not secretly being used to plug trillions in capital shortfalls, to borrow, pun intended, an approach from MF global which commingled client capital; why should global banks not commingle central bank capital?), will immediately spill out into the street. What happens next will be amusing to quite amusing.
Source: SNB
h/t Alexander Gloy
(15 votes)
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Emmentaler, bitchez!
Whhoooahh Nessie!
I'll never forgive the Swiss for pegging.
That pegging was certainly the final Sargnagel (nail in the coffin) of any Swiss banking/financial independence. They have sold out lock, stock, and barrel.
'They have sold out lock, stock, and barrel.'
Isn't that the story of how Swiss banking originated?
Switzerland Exports Switzerland exports were worth 17 Billion CHF in October of 2011. Trade has been the key to prosperity in Switzerland. Exports accounts for 50% of its GDP. Swiss main exports are: medicinal and pharmaceutical products, watches and clocks, machinery for special industry and metalworking machinery and tools. Swiss main export partners are Germany, United States, Italy and France.Swiss Trade Surplus Wides in October
Switzerland's trade surplus widened in October to CHF 2.2 billion from CHF 1.9 billion a month earlier, data from the Federal Customs Administration showed on November 22nd.Published on 11/22/2011 12:14:42 PM | By TradingEconomics.com, Federal Statstical Office
Exports rose 9.5 percent year-on-year in October in real terms, compared to 9.9 percent growth in September. Imports increased 3.4 percent, following 3.6 percent annual increase recorded during the month before.
Total exports were boosted by higher demand for Swiss watches and chemicals. The chemical industry saw 23.2 percent more shipments in October than a year earlier.
Separately, the Federation of the Swiss Watch Industry, FH, said that monthly value of watch exports rose to an all-time high in October. The total of CHF 1.9 billion exceeded the October 2010 level by 18.6 percent.
Switzerland Unemployment Rate The unemployment rate in Switzerland was last reported at 2.9 percent in October of 2011. From 1995 until 2010, Switzerland's Unemployment Rate averaged 3.38 percent reaching an historical high of 5.40 percent in March of 1997 and a record low of 1.60 percent in November of 2000. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The nonlabour force includes those who are not looking for work, those who are institutionalised and those serving in the military.
Switzerland Inflation Rate The inflation rate in Switzerland was last reported at -0.1 percent in October of 2011. From 1971 until 2010, the average inflation rate in Switzerland was 79.12 percent reaching an historical high of 4617.84 percent in June of 1994 and a record low of -0.10 percent in November of 1986. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. This page includes: Switzerland Inflation Rate chart, historical data and news.
http://www.tradingeconomics.com/switzerland/exports
http://www.tradingeconomics.com/switzerland/inflation-cpi
Cute little guy!
Just crossing the wires:
Joint statement by Abby Joseph 'Dutch' Cohen, Joe Lavorgna, Cristina Romer, Mark Zandi & Barton 'AUM Smalls' Biggs.
You better not short
You better all buy
Better invest
I'm telling you why
Bernanke Claus is printing right now
He's says he won't be printing
But you know he’ll do it twice;
Gonna bail out Who's naughty not nice
Bernanke Claus is printing right now
He calls it quantitative easing
ZIRP a QE fake
He knows what interest rates should be
So buy treasuries for goodness sake!
O! You better not short!
You better fucking buy
Better invest
I'm telling you why
Bernanke Claus is printing right now
Bernanke Claus is printing right now!
Merry quantitative easing to all, you'll be millionaires tonight.
Can we have a Merry Zimbabwe Christmas this year!
I have visions of sugar plums and mud pies dancing in my head already!
Brilliant!
I tried to edit in "Buy the Fucking Dip" in replacement for Better invest, but I have premature posticulation.
Hildebrand the red-faced bankster
had a very sweaty brow
and if you ever saw it
you would even say "And how!"
All of the other banksters
used to laugh and call him names
they always pressured poor Hildy
to join them in their printing games
Then one rising Swiss franc eve
Merkel came to say:
"Hildy with your press so tight
won't you guide the Euro-bailout tonight?"
Then all the banksters loved him
as they shouted out with glee
Hildy, the sellout bankster
you'll go down in infamy!
Outstanding!
+1 Zimbabwean Dollar or 10,000 BernankBux
Keep interest rates low
Central banking today
Let the printers go
Profit all the way
Dow rises before bells ring
Making bonuses bright
What fun it is to steal and grift
A printing song tonight
Oh, market bells, market bells
Profit all the way
Oh, what fun it is to steal
From everyone’s 401K
OHHHHHHHHHHHHHHHHHHHHHH market bells, market bells
Profit all the way
Oh, what fun it is to steal
From everyone’s 401K
Benny the Snowman
was a shifty, lying soul
with a shiny pate and a cheesy beard
and a heart as black as coal
Benny the Snowman
loved those fairy tales of Keynes
theories full of holes, but the Austrians know
how he went insane one day
He led them down the road of debt
right to a printing top
And he only paused a moment when
gold's rising price said "STOP!"
Oh, Benny the Snowman
had to hurry and print all day
but he sneered "goodbye", saying "Go ahead and cry,
your savings have gone away."
Thumpety thump-thump, thumpety thump-thump
look at prices grow
thumpety thump-thump, thumpety thump-thump
where'd my paycheck go?
I've been working on this, off and on. Gonna sing it while Christmas Caroling this year.
Mine eyes have seen the glory of the ending of the Fraud
The Banksters will take a haircut and then they’ll get the rod
Joe SP will find his mortgage will finally get the mod
Bondzilla is marching on!
I have seen him in the cook-fires of OWS’s squalid camps
Italy’s bonds have broken 7% while Greece’s quickly ramps
All commerce congeals as credit slowly cramps
Bondzilla’s day is marching on!
40 years of fiat’s time has come at last
Now our run is over, the dollar’s finally passed
Gold will be again, as it was in the past
While Bondzilla lumbers on!
We’ve surmounted the peak, now down the other side
Buckle up buckarro we’re in for quite the ride
While working in your garden, keep a carbine by your side
And Bondzilla marches on.
Will we end in ice, or will we end in fire?
Another regional war, or engulf the world entire?
Hunker in you bunkers lads and watch the Fraud expire –
Bondzilla is coming on!
Pop yourself some popcorn and pour yourself a glass
It’s time to reap the whirlwind you might as well be gassed
Banzii where art thou?
You are correct, that is exactly how it got started.
I got a Groupon in my e-mail this morning, 75% off UBS stock*
*Based on 4/27/2007 closing price, see store for details
GRPN now barely worth more than a Jackson, off better than 10% today, eat it momos
Groupon is apparently doing a GRPN on GRPN stock, with more GRPN GRPN deals to come.
It'll be buy one get one free in two weeks.
Junk, bitches
http://azizonomics.com/2011/08/27/groupon-unsustainable-parasite/
I love using groupon - it's already shown me two restaurants I never want to go back to again, for half the normal price. WINNING!
Its the most private of CBs for Fuck sake - I love it when Zero hedgers thinks they are Fallen Fucking Angels.
I had to rotate the chart a quarter turn counter clock wise to see that.
Nessie is Scottish, not Swiss!!!
-John
http://johnu78.blogspot.com/2011/11/how-to-get-started-in-amateur-radio.html
You've been promoted, Rear-Admiral Obvious
The intent of the post is to show that the Peg isnt going to hold..........
Is that the black swan?
libertarian86.blogspot.com
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011...
Wow, a chart of black swans that looks like a black swan.
*head asplodes*
Thumbs up if you're erotically touching your percious metals supply in delight right now!
I took two rolls of my silver quarters and put them in my sack.
not much expansion here.......TIMBER......oh wait np here monetary base up 150%+ in a couple months........is hildebrand a rogue trader??????
Central Banksters/Fractional Reserve Banking High Priests:
Please report to your printing stations. We are at DEFCON 2.
Looks like a (black) woodie to me.
Noooooooooooo!
http://www.youtube.com/watch?v=WuO8IMfF-Us&feature=related
(Woody from Toy Story: :))
Again, as I stated up thread:
"I had to rotate the chart a quarter turn counter clock wise to see that."
It's a little known fact that swans are the only birds with an actual penis (remember Ganymede?).
<<<<< insert black swan joke here >>>>>
Is that a black swan in your pocket, or are you just happy to see me?
Once you go black swan, you never go back.
Black Swan Power.
Black swan is back.
Black swan is beautiful, baby!
The black swan is so big, that when it arises, it causes a total eclipse.
The black swan is so big, that when it arises, the earth develops an eliptical orbit.
The black swan is so big, black holes fall into it.
The black swan is so big, the man always be tryin’ to keep it down.
These may not be funny, precisely...
Yo Black Swan so big, when she sit around da House -- she sit around both the House and da Senate. Bruh.
<golf clap>
Chuck Norris doesn't get a boner. He gets a Black Swan.
But- but- black woodies are much er, taller than that, right? They need to print some mo'.
They will avoid hyperinflation by orchestrating a massive deflationary death spiral.
Never say they didn't have a plan.
By taking the monetary base from 40 to 240 in three years? And the printing hasn't even begun.
The religion around here is so thick the humor can't breathe.
I guess my prediction came true and we really are returned to the Middle Ages. Nobody laughed back then, either.
Ah, man, normally I pick up on that stuff. Am I red?
Or perhaps my half-assed humor veers so close to the actual truth as to pass for adroit financial industry commentary.
Okay, so that is probably really scary right there.
I asked you this on another thread but never saw the answer. Your avatar, did she ever, by any chance, impersonate an angel in a church? She, uh, met a broker... A story I read once...
Impersonating an angel -- must be a serious crime. And in a church, no less.
Sounds like something Fortran would do, though. Her sister is even worse. Did you ever hear the one about the time they both got really drunk, accidentally stumbled into a biker bar thinking it was a produce market, and proceeded to -- -- no I'd better not. They made me promise not to mention that to anyone ever.
She's not much of an angel, no. But we try to overlook all that on account of she's so darn cute.
Delicious.
"the old and familiar link between increased bank reserves and higher inflation has been broken"
This is the most important condition for the hyperinflation scenario. Its when the loss of faith in the currency begins that the banks will unload these reserves and buy buy buy anything they can to protect from devastating inflation.
Did you say "buy, buy, buy"?
Somewhere out there, a bald, coked-up, ADD-afflicted Wall Street pumpmonkey just wet his pants.
Bullish!!! (Or is that bullshit? I am confused, ah my precious...)
They need Nessie to stay in her "loch." A surge in money velocity will unleash the Kraken of all inflationary spirals.
What's black and white and red all over?
Never mind.
Obama
Do black swans do swan dives?
No, only Italian football (soccer) players.
'Do black swans do swan dives?
JEF certainly does.
100 years of trust in the Swissie decimated in one day.
Well I'm sure glad bankers have confirmed all economic rules have now been deemed irrelevant.
Core tenet of biflation: economy improves then hits an inflationary escape-velocity. So economy must dis-improve and in so doing hits delfationary escape velocity. Fed then intervenes. Wash-Rinse Panties, then Repeat
250 billion Swiss Francs, huh? That equates to about ten million or so Francs per inhabitant.
...assuming they are not secretly being used to plug trillions in capital shortfalls,
And why would we assume that?
There is no doubt in my mind that these criminals are completely lawless. You can be sure that the men behind the curtain are doing everything they can to keep the ponzi alive.
Yes, central banks are stuffing the slush-funds at every connected financial institution that's in on the Ponzi. Call 'em kissing Ponzi cousins.
Guess how that excess cash gets put to work when the economy improves a bit? Why in every ultra-pro-cyclical high-risk paper asset available, as we saw at least 3-times so far during the "recovery". That of course is ultra-inflationary without the least benefit to the real economy.
And ultimately it starts the next leg down as margins get squeezed al over the place once again and consumer buying power shrinks
It is funny. In Weimar they also insisted printing money had nothing to do with inflation. Any delusion will suffice.
"the old and familiar link between increased bank reserves and higher inflation has been broken," also sounds a like "Stocks have reached a permanently high plateau".
It really is different this time....
"I do not foresee any decline in the housing market."
"The subprime crisis will not spread to the broader economy."
"Any current inflationary pressures are purely transitory."
Can someone explain exactly how this money will spill in to the streets? I don't see it. Certainly not through employment. Wages aren't rising?
The same exact way it always spills out onto the streets.
It spills out into the streets by inflation.
Inflation is a very simple concept to understand: More money = less value. It may seem contradictory but it’s very straightforward. That’s how Ron Paul explains it in "Sound Money.".
A flood of money rushing after fewer goods means higher prices. And you're right; the increase in wages never keeps up with the inflation. It was planned that way. It's called asset-stripping.-- trillions for the bankers, debt slavery for the people.
Says Paul: “As a matter of fact, some people, companies and banks have managed to develop an inside connection to the “money elves”, allowing them to receive new money into their bank accounts whenever they want to. The money is officially a loan (credit), but they know they never have to pay it back… they just ‘roll it over’, i.e. take up even more debt. With all that easy money in their accounts, and after hearing on TV that stocks only go up and that real estate prices will continue to rise forever, they tend to get a bit lightheaded and start making bad investment decisions. They know that if anything happens to their investments they will be bailed out by the government, so they do not hesitate to take huge risks with their new found ‘wealth.’.
“Let’s stop dreaming and look at the reality of things. What if I told you that these ‘money elves’ do exist and that they spring into action not just once in a lifetime, but every couple of weeks? And that they repeatedly give money to their closest friends, but not to you? That prices are going up because the total amount of money in circulation increases, but that you’re missing out on all the fun?
“Well, that’s inflation at work. Who benefits from inflation? Only those who are at the top of the pyramid and receive all that new money directly from the source. As you might have guessed by now, the source is the Federal Reserve, and its recipients include the government which ‘borrows’ a lot of new money each year, without any intention of ever paying it back. Another beneficiary these days are failed banks that are being ‘bailed out’ for the good of the ‘economy,’ or defense contractors that receive money to build up our military so we can have a constant presence all over the world and fight never-ending and unnecessary wars. There was even a huge number of small-time beneficiaries who received consumer loans and sub-prime mortgages they would never be able to pay back…
I understand it now. Certain people have to be killed. I don't know their names.
We are at the point where there isn't enough money to service the existing debt, let alone retire it. Game over.
That looks familiar: http://www.zerohedge.com/news/gold-silver-surge#comment-1808379
+17oo
Shouldn't the gold chart look the same as this then?
Not when the market is flooded with paper "gold".
"Black Ness Monster" just rolls off the tongue...
-xq
Sure, it's an "actor's" name, isn't it?
And here is Egan-Jones again: Synopsis: Unsustainable, in our opinion - JEF needs to raise equity (i.e., $1B) AND deleverage to reduce its 9.5+% LT yield. JEF's total debt to capital is 90.4% vs. 67% for IBKR, 62% for RJR and 43% for GFIG. GS and MS have ratios near 88% but they are significantly larger and should have some federal support via their banking charters.
Maybe the Swiss will fund the IMF by themselves and save the EU - oh hell - the world!
But wouldn't that jeopardize their storied neutrality? Maybe they should just save part of New Jersey.
Is there a part of New Jersey worth saving?