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Swiss Franc Surges To New Record Against Dollar, Peripheral Spreads Blow Out As Schizophrenic Market Is In Risk Off Mode

Tyler Durden's picture




 


The perfect storm in risk off continues, as not only have European peripheral spreads once again commenced their trek wider, but FX flight to Swiss safety has resumed with a vengeance, with the USDCHF tumbling to a new all time low just above the 79 handle. The EURCHF is just above lows set a week earlier, following Moody's cutting Greece to Ca from Caa1, with a developing outlook, and the resulting final outcome of which will be a default of some nature. Also weaker are various peripheral spreads with Spanish, Portuguese and Italian Bund spreads and CDS pushing wider this morning. Another notable development is that Austria has decided to skip its August auction supposedly as "funding has been advanced already" although we all know what the real reason is. In Asia, markets closed broadly lower and the USDJPY continues to trade near all time lows, save for the flash crash plunge from March 17. According to Lee Hardman of BOTM-UFJ, "verbal jawboning by Japanese authorities of concerns over  yen strength unlikely to be backed up by actions to weaken  yen." Any attempt likely to be unsuccessful at present, he adds. The bottom line, which incidentally is always cash, and in this case the amount of it held in Greek banks can be seen by the chart below. We fully expect Greek bank deposit to decline by another €5 billion in the most recent period when the data is released.

 

 

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Mon, 07/25/2011 - 07:02 | 1490015 Id fight Gandhi
Id fight Gandhi's picture

Things are gonna get a lot more pricey for the American slave class

Mon, 07/25/2011 - 07:14 | 1490025 Popo
Popo's picture

Agreed.   And gas is going to get pricey along with everything else.   All eyes should be on the price at the pump.

Gas prices are what will bring the US ponzi down... tick tick tick...

Mon, 07/25/2011 - 07:17 | 1490032 Id fight Gandhi
Id fight Gandhi's picture

Nearly no one in congress and very few Americans realize the power and damage of monetary policy.

As prices surge they'll all point fingers at the wrong people again and be clueless it's the morons with the printing press and interest rates are ruining the economy, not just here but globally as the dollar is reserve currency.

Dollar used to be 35/oz of gold err tradition 40 years ago, it's over 1600 now. That means the dollar fell 98%

If people had a clue they might care. But football, porno and political bickering is all they care about.

Mon, 07/25/2011 - 07:06 | 1490019 Ted K
Ted K's picture

I told my grandson I was going to get him Austrian Bonds as a birthday present last Friday. Now what the hell am I supposed to do????

Mon, 07/25/2011 - 07:10 | 1490024 GetZeeGold
GetZeeGold's picture

 

Just slip him a gold Eagle.....he'll love it.....shiny!!!

 

Mon, 07/25/2011 - 07:11 | 1490026 vocational tainee
vocational tainee's picture

give him philharmonics..

Mon, 07/25/2011 - 08:45 | 1490168 camoes
camoes's picture

Give him a basket of $NFLX, $LULU, $OPEN, $GMCR, $LNKD and $P. It will be worth zillions of dollar by the time he get's to college!

Mon, 07/25/2011 - 07:10 | 1490023 Jendrzejczyk
Jendrzejczyk's picture

Anyone else seen a chart where silver shot up to $41.57 on open last night?

http://www.semmo.net/streaming-real-time-quotes-gold-spot-price-silver-s...

Mon, 07/25/2011 - 07:13 | 1490029 MarketTruth
MarketTruth's picture

In Switzerland they truly know that gold IS money... unlike The Bernak.

Mon, 07/25/2011 - 07:29 | 1490051 teaddy bearish
teaddy bearish's picture

indeed we do

Mon, 07/25/2011 - 07:22 | 1490037 Id fight Gandhi
Id fight Gandhi's picture

Money needs to have intrinsic value. The gold standard was a hybrid and a decent compromise. The world and the USA was doing fine under it. This fiat shit has been a mess.

You cant take today's paycheck, save it and expect to buy the things you need a year or two from now.

People can wear clothes longer, buy stuff second hand, but food, energy keep going up and wages keep falling.

Mon, 07/25/2011 - 07:37 | 1490067 tim73
tim73's picture

"The world and the USA was doing fine under it."

Oh really, half the world was under COMMUNISM! Yes it was fine for USA after WWII until Switzerland started demanding swapping dollars to gold and reserves started to go down drastically. Then all of sudden it was "not OK" for USA.

Gold is not good if an economy grows too quick when compared to access to new gold or vice versa, like in Spain long ago after discovery of New World. Also faking gold is easier nowadays, thanks to more advanced material technologies than 40 years ago. Without access to some pretty expensive measurement gear, average folks would not be able to tell the difference.

Mon, 07/25/2011 - 07:47 | 1490077 Id fight Gandhi
Id fight Gandhi's picture

Gold, silver, a finite universally accepted storage of wealth that cannot be manipulated by central banks.

Any monkey can run the presses and devalue the purchasing power of money to fit their failure of budgetary needs at the expense of the working class to work and save.

Our system now is no different than paying someone today, taxing them, then going back and stealing the rest from devaluation. What do they do to survive? Go deeply into debt for their lives.

It just doesn't work.

Mon, 07/25/2011 - 07:49 | 1490084 THE DORK OF CORK
THE DORK OF CORK's picture

Vietnam & peak domestic oil production brought the Bretton Woods system down although it could have been saved if domestic austerity was a poltical winner.

It was not - The American Graffitti culture was too ingrained into the collective psychosis.

Mon, 07/25/2011 - 08:13 | 1490112 Urban Redneck
Urban Redneck's picture

Perhaps the fools in Washington DC should realize that they haven't even paid off the principal they borrowed to fund the war in VIETNAM yet, much less every other adventure since then.

Mon, 07/25/2011 - 07:22 | 1490038 overmedicatedun...
overmedicatedundersexed's picture

we fixate on gold value in Fort Knox (if any) while the USA sits on on the SPR millions of barrels of black gold going up in value daily..sell it all and we got Billions of FRNs to pay down debt..just saying..

Mon, 07/25/2011 - 08:42 | 1490167 PaperWillBurn
PaperWillBurn's picture

I better buy that gold Rolex soon!

Mon, 07/25/2011 - 08:48 | 1490179 GCT
GCT's picture

Paper they will cut your hand off to take that dam rolex.  Buy physical and stash it.

Tue, 08/23/2011 - 23:24 | 1593518 karmete
karmete's picture

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