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So UBS Is Considering A Charge On CHF Deposits After All
One headline and one denial later, we now learn that the original news was in fact correct. As MarketWatch reports "UBS Friday said it may shortly begin to levy a temporary charge on Swiss franc deposits as a way of encouraging its bank customers to keep their cash in the surging Swiss currency as low as possible." In doing so, the bank joins such illustrious banks as our own BoNY which announced on August 4 it would start charging a 13 bps fee on deposits. Naturally, this is nothing but yet another attempt to devalue the recently record Swiss Franc. If proven successful, look for even more institutions to establish comparable cash prohibitive mechanisms that force savers to sell the host currency and expose themselves to FX and counterparty risk in addition to everything else that already plagues fiat.
From MarketWatch:
The bank said in a statement distributed by Swift earlier Friday that "in view of the prevailing market conditions which in particular affect the Swiss franc, we are closely monitoring the development of the CHF cash balances maintained in current accounts of our CHF cash clearing customers."
It added: "Should we see a continuation of the net inflow of CHF in cash clearing accounts of our banking customers, we might have to take corrective action, within the next few days, by means of an Temporary Excess Balance Fee."
The move represents the most assertive step yet by a major Swiss bank to get clients to stem inflows into the Swiss franc, which has surged against the euro and U.S. dollar
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The Swiss did the same back in the 1970's with dismal results.
Swissy lost value, so it clearly did
Although I normally take a contrarian view on this site, I could not agree more with the destructive nature of these currency wars. This phenomenon demonstrates the inherent problem with competing national currencies. So what's the solution? Well, it's simple. What we need is a GLOBAL currency issued by a centralised INTERNATIONAL authority. The managers of this body will be experts and intellectuals of the highest degree - only people from top academic and banking institutions will be admitted in order to maintain the body's trustworthyness and integrity. This will eliminate the currency war and restore peace and equality throughout the world.
Are you being sarcastic? Experts? Intellectuals of the highest degree? Maybe like professor Obama or Summers? Top academic institutions? and banking institutions? Which top institutions are you referring to? Harvard, Princeton, Goldman Sachs? HAHAHAHAHAHAHAHAHAHAHA. OF COURSE you were just being sarcastic, what was I thinking? No one could so stupid as to believe that a "GLOBAL currency issued by a centralised INTERNATIONAL authority" could be the solution.
Yep, you cant trust humans... It just doesnt work to have humans govern other humans.
Why put the hand on the hotplate for another century? Havent we finally realized after thousand years of touching the hotplate:
Hotplate is HOT, do NOT TOUCH HOTPLATE ANYMORE!!!!
Only sophisticated solution I ever heard came from isaac asimov in the form of some utopia idea of having a ROBOT REGENT, or robot government.
A machine, the ultimate intellect, cold logic... call it skynet but without the game-ending "EXTINCTION"-solution...
More like a skynet that likes to micro-manage and keep the game going for eternity.
lol
Well, it's simple. What we need is a NEW WORLD ORDER one global country with one military. The managers of this body will be experts and uncorrupt intellectuals of the highest degree - only people from top academic (Harvard, Princeton, Yale) and banking institutions (BAC, GS, JPM) will be admitted in order to maintain the body's trustworthyness and integrity. This will eliminate all war and restore peace and equality throughout the world.
Reminds me of my thoughts when i was in kindergarden ....
We already have that.
the more likely solution is do nothing and let entropy unfold. the central banks will have NO choice but to back the U.S. currrency with gold for it to maintain international dominance, gold will cost 5grand an ounce, and before that happens it will be regulated and the government may also attempt to steal it from americans an foreign central banks.
this is not a good solution, but it is unilateral, has military backing , it just takes less complexity and fewer 'agreements' to happen. it is both the solution requiring less energy, and it WILL definitley bring stability so it's a go to solution.
an international scheme , which would need the full backing of the u.s. military would not come into existance all that easily, particularly with the u.s. military stretched thin. china and russia would want influence over it. and instead of simply handing over the keys to our treasury, the u.s. might literally reneg on all its obligations and simply rely on the overpowering threat of our military to challenge anyone to do anything about it . sort of a military threat to force other nations to continue to accept our dollars after we back with gold. if they don't like it, they will have to begin cementing their plans of non-dollar , non u.s. trade.
Hey Banko
Like youir comment about doing nothing. The NWO understands 'doing-nothing', so why don't we trolls get it?
However, our military has no history in 'doing-nothing' and that is pretty discouraging---death and destruction are so passe(no idea of the control key for an accent mark). Anyway, I've harped on this 'do-nothing' shit so much that I am boring this oldman, also; ENOUGH!
thanks again for the post om
MillionGoonbucksBonus = David Rockefeller? That's NWO booolchit!
Currency wars lead to depression (or war). Always has, always will.
"...restore peace and equality throughout the world."
I must have missed that nano-second of time where your statement was accurate in the past 6,000 years.
Luckily for you utopian visions carried out by an opaque, dare I say shadowy, elite few have always turned out well. So you have history on your side twice over.
/EXTREME Sarcasm
Hey, we had 30 years of peace during last 6000 years!
There is a global currency, it's called GOLD.
Well said!
That's the whole problem... we need more Central Planning by "experts and intellectuals of the highest degree". Unsullied by the unsavory spectacle that is the Business Class. Also, 2 whores and 3 grams of coke for all, baby.
OMG! They are among us!
Keep it up, MDB. Nice to see you able to bait a couple every time.
Yeah, and we can call it the one. Then next year we can call it the half, then the quarter, then the eighth, and so on.
It will be most entertaining for those of us who have become your new overlords in the meantime because we held gold and silver.
When someone isi junked 99 times does it temporarly suspend there account or cause really annoying beeping sounds or anything?
I think this should be a "feature."
I don't think I have wanted to junk someone so hard in a long time.
What we need is a GLOBAL currency
Already got one. It's called fucking GOLD and SILVER asshat.
The idea that we let idiots issue paper for real value without first drawing and quartering ALL the bankers that have been explicitly and implicitly committing massive amounts of fraud is short-sighted, stupid and hopelessly naive
There are always banknotes to escape the fees. Happend in the 70ies massively, banksafes had a boom. But at least bank balancesheets were not inflated.
Warren new BAC was selling China Construction Bank
half of it's 10% stake
'...mechanisms that force savers to sell the host currency'.... or get their money out in cash and...
put it in a safe deposit box = deflation
spend it = velocity = inflation
At the moment here in the UK as a temporary measure it's option 1 for me.
It's almost like real interest rates are negative...
I wonder what asset performs well in such an environment.
More and more reasons to sell the fiat and buy the Solid Gold Cadillac!
nice goldcore v. roubini twitterfight ongoing
Looks like Roubini brought a wet noodle to a nuclear MIRV-tipped ICBM fight.
I'm starting to worry about Nouriel...sniffing all that glue can't be healthy.
WOW...I would have looked at this as DOLLAR POSITIVE.
Which ofcourse would have been stock market negative.
apparently, there is no longer any such thing as a "dollar positive".
"No matter how paranoid or conspiracy-minded you are, what the government is actually doing is worse than you imagine."
William Blum
So, tradition does not charge interest?
This week in Capital Control/Central Planning Conspiracy News:
-Gold margins hit new highs on CME and Hong Kong exchanges. After weak hand selloff, gold bounces back to near all-time record highs.
-Swiss Franc deposits will be charged to keep CHF off all-time record highs
-Japanese Central Bank intervenes to keep Yen from rising beyond all-time record highs.
Man! Despite charging jillions in margins, jawboning and menacing, the money they printed is rushing for the safe-havens.
And as a perfect follow-up, Marc Faber made a cryptic remark on CNBS regarding not storing gold in the US or even in a single overseas jurisdiction. Because "I don't trust anybody".
You know you have a desirable currency when you can charge openly for the privilege of ownership.
You know you have a desirable currency.....
And a shitty, shitty economy with very very few better options
It's not helping the USD.
Here is the gradual evolution back to the gold standard ( and one more reason to own physical gold): Central bank of Russia announces special ratef for credits, collateralized by bullion. http://lenta.ru/news/2011/08/26/gold/ and http://www.cbr.ru/analytics/standart_system/print.asp?file=refinan.htm#11
Currency Wars, Bitchez.
To have and to hold physical PM's, till death do you part.
Still No Comprende?
So you get charged on your CHF deposits? Let's see, what other safe haven is there . . . hmmmmm ...
Anyone notice the network talking heads are now testing the waters with mentioning increasing FDIC bank deposit coverage? One of them actually mentioned up to a $billion yesterday and another mentioned something to this effect today. ZH should start to follow this closely as it would force those who think that we'll only have very high inflation but not Weimar type hyper-inflation to reconsider. Imagine a systemic bank failure in which all M3 is converted to M2. Hopefully, DOD is locating heavily forested countries to 'democratize' in order to facilitate paper printing operations. They know the empire is crumbling. Soon, in the case of large depositors, they'll just allocate FDIC-style insurance that covers all losses with forclosed FANNIE/FREDDIE homes or they'll just make losses for anybody in the top tax bracket illegal (they'll find a way). I've added to three of my favorite positions today.
MEGASHARES 2X SHORT MIDDLECLASS
MEGASHARES 2X LONG INCOMPETENCE
MEGASHARES 2X LONG CORRUPTION
These are good trading vehicles but I would want to be out of them once the sh1t really hits the fan because they could become illiquid in a highly volatile trading environment.
It appears that UBS is NOT considering a charge on CHF deposits, whereas it is although considering such a charge, while at the same time it denies that it is not but it is not, even though it is. But the truth of the matter is that UBS IS considering a charge, except that it isnt when it is.
No sooner does the moron who the CT sheep elected as governor last November raise our income taxes then he goes and pisses away $20 million on this little venture. Thanks Dick I mean Dannel!
http://www.ctpost.com/default/article/UBS-to-stay-in-Stamford-for-another-5-years-2136901.php
How much is excess cash? A suissie's average monthly income?
"In doing so, the bank joins such illustrious banks as our own BoNY which announced on August 4 it would start charging a 13 bps fee on deposits."
No one here familiar with the term: term deposit account versus demand deposit account (sometimes called a "transactional account") - accounts by which their very nature is designed for the immediate convenience of the customer and _not_ the bank?
See, the bank cannot in all fairness make loans against such deposits, which might very well not be there in a day or two AND YET there are expenses incurred to handle such funds ...
Ring any bells yet?
Bueller?