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Swissy Plummets On Rumor Swiss Banks To Charge For CHF Deposits (Update: SNB Denies)

Tyler Durden's picture




 

Update: the SNB just denied it has sent letters to Swiss bank demand a surcharge for CHF deposits. Response:

As the stock market whipsaws continue, nothing compares to what is happening in the various Swiss Franc pairs, as both majors USDCHF and EURCHF have soared (the Franc has plunged) following rumors that UBS (and possibly more banks) have escalated the currency war by announcing charges for CHF-based deposits, thereby making CHF holdings more expensive, and forcing a sell off. It is unclear if this was a private decision or mandated through the SNB. We expect that it will take the market the usual several hours to realize that the only winner out of this move is not ES but gold (and physical at that), which once again reminds everyone it is the only money without deranged central banker counterparty risk.

 

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Fri, 08/26/2011 - 10:54 | 1604185 unky
unky's picture

People will soon realize that the swiss franc is just another paper currency. THen they will also flock into gold

Fri, 08/26/2011 - 10:59 | 1604223 Pladizow
Pladizow's picture

Whether it be Swiss Cheese, Swiss Francs or any other Fiat paper currency, they are all riddled with holes.

"The FEd will elevate gold ownership from intelligent diversification to practical necessity." - John Embry

Fri, 08/26/2011 - 11:08 | 1604271 mkkby
mkkby's picture

This article is about raising the price of holding a certain asset they want to manipulate.  You think that can't happen with gold?

They can raise the taxes very high.  They can make it illegal to own and trade.  They can raise storage costs or refuse to store it.  They can tax buying and selling with dealers.

All of these things can crater the price at any time.  I have no position.  I'm just saying protect yourself from this relentless hype.  You won't be allowed to pay off your house with a gold coin.  And they won't let the price undermine their determination to keep the ponzi going.

Fri, 08/26/2011 - 11:13 | 1604276 unky
unky's picture

Thats why you hold your gold in different jurisdictions. Plus, you can always move your Gold where free trade is welcomed such as Singapoore or HK.

If you live in europe you might very quick move your gold into switzerland or Luxemburg or Liechtenstein or where ever you prefer, when rumors of confiscation or taxation of Gold come to world.

Fri, 08/26/2011 - 11:12 | 1604290 nope-1004
nope-1004's picture

All of that assumes there is an alternative option and viable medium of exchange if and when your predictions occur.  What if there isn't?  Will you pay off your house with buttons?  Coffee beans?  LOL.

Fri, 08/26/2011 - 11:14 | 1604294 Pladizow
Pladizow's picture

These are simply all scare tactics that Wall Street and Washington hope I place any creedence in - which I do not.

Perhaps you can tell me what Wall Street product I should buy?

You mention "relentless hype" - how many magazines, newspapers, TV stations, internat sites, radio shows or any other form of mass media propoganda have been dedicated to pushing gold as opposed to Wall Street products over the last 50 years?

ALL ponzi's end!

Sat, 08/27/2011 - 01:10 | 1606793 ramirez
ramirez's picture

I have a few headphone pairs with gold-coated jacks and gold-coated watch. I can't sleep what would happen if the "make it illegal to own and trade". I could never listen to music neither know what time is it anymore :) Nor would I be able to get rid of these accessories to avoid being prosecuted :P

Fri, 08/26/2011 - 11:02 | 1604250 Sudden Debt
Sudden Debt's picture

It's just a way to fund their dying banks to.

First they set up the trap, lured the money in AND NOW IT'S PAYDAY BITCHEZ!

The account holders can withdraw their money back to their country off course for the small fee of 4% ON THE TOTAL SUM!

And for those who don't agree, can always complain at the tax collectors in their own country explaining that they fled with their money to Swiss to avoid taxes and don't like it anymore.

WHOEHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!

 

Fri, 08/26/2011 - 11:07 | 1604266 unky
unky's picture

Germany did some new agreement with switzerland recently whereby the swiss  banks would collect the taxes and then send them to the german government. However they would send all the taxes collected at once, so its anonymouly and the german government wont see who has how much money there.

I call bullshit. Maybe next year we will see new, stricter laws. Why I should bother with all of this uncertainty when I can just hold the physical gold.

Fri, 08/26/2011 - 11:39 | 1604417 smore
smore's picture

Britain too.  Plenty of time for deposits to end up in gold.

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/8721...

Fri, 08/26/2011 - 11:35 | 1604388 Nothing To See Here
Nothing To See Here's picture

"People will soon realize that the swiss franc is just another paper currency. THen they will also flock into gold"

Technically, the problem with paper currencies is not that they're made of paper, it's that they are not backed by gold in order to prevent the free printing. But say that the Swiss franc is not printed and its supply is stable, it would be (almost) as good as gold. But since all the other currencies are managed by madmen, investors flee to the only currency which is soundly managed and it causes imbalances which are unfair to the country who correctly managed its currency.

Same happens with the economy overall. Countries with better regulatory environments get the most business and investsments, but they suffer the most because of this when it all crashes because of the actions of madmen in other countries.

Sorry for the lecture, had a few thoughts which I wanted to write about...

Fri, 08/26/2011 - 10:55 | 1604200 Debugas
Debugas's picture

holding physical gold costs me less than 0.5% p.a.

why would i want to pay for electronic deposit in constantly devalued fiat currency ?

Fri, 08/26/2011 - 10:56 | 1604202 unky
unky's picture

I hope you dont hold it in a vault in the U.S. ;- )

Fri, 08/26/2011 - 10:57 | 1604205 Irish66
Irish66's picture

"will take the market the usual several hours"

What the hell are they zombies

Fri, 08/26/2011 - 11:00 | 1604233 unky
unky's picture

Actually the market could have figured this out years ago  that treasuries or the swiss franc or whatever are all just paper.

But the market is stupid. First the U.S. gets downgraded and some individual investors might think they dont want to stay in treasuries anylonger, but rather buy swiss francs. Then we see headlines like today and people think: Hmm, might buy something else. A smart person would realize immediatly that all of this is just paper and only the physical gold (or silver) cant be devalued by governments.

Fri, 08/26/2011 - 11:25 | 1604330 Bullionaire
Bullionaire's picture

Negative JPM:SILVER ratio watch - Day 25.

 

Suck on THAT, Blythe.

 

 

Fri, 08/26/2011 - 11:52 | 1604477 mkkby
mkkby's picture

"only the physical gold (or silver) cant be devalued by governments"

The hell it can't.  They can tax it, or make it expensive to store or trade.  They can make it illiegal to trade.  The only safety in gold is in your mind.

Fri, 08/26/2011 - 11:05 | 1604261 alien-IQ
alien-IQ's picture

Hence, the first rule of Zombieland: Cardio.

Fri, 08/26/2011 - 10:57 | 1604207 Magnum
Magnum's picture

It is not possible for Americans to open an account in Switzerland due to FATCA, and the UBS lawsuit settlement widely seen as unfair, and pissed off the Swiss to no end.  Swiss banks absolutely will not open any account for an American citizen.

Fri, 08/26/2011 - 11:04 | 1604256 alien-IQ
alien-IQ's picture

Dual Citizenship = Problem solved.

(and it doesn't have to be Swiss citizenship)

Fri, 08/26/2011 - 11:17 | 1604304 trader1
trader1's picture

that's not true.  if you live over here and/or work here, then you can get an account

Fri, 08/26/2011 - 11:22 | 1604321 Magnum
Magnum's picture

Check your facts.  Swiss banks all have a policy: NO AMERICANS CAN OPEN AN ACCOUNT.  Not $10,000 not $10M.  The answer is NO.  I was in Switzerland within the very recent past.  In person I spoke to every bank and none of them will open an account for an American.  zzzzzzzzzz.

Regarding "dual citizenship" this is extremely complicated and not a reasonable solution with all due respect.  

Fri, 08/26/2011 - 12:50 | 1604690 trader1
trader1's picture

i re-raise you and ask you to check your facts again.  

to open a swiss bank account as an american, you simply need to have a work permit or a residence permit for switzerland.

Fri, 08/26/2011 - 15:06 | 1605180 zoogle
zoogle's picture

I can also confirm this. First question that they started with during the opening process once they heard my non British accent at one bank. This  was NOT followed with "unless you have a work or residency permit". At another bank the same question was asked with alarm in the secreteries voice as if having American citizenship is like the plague.

Fri, 08/26/2011 - 16:26 | 1605514 trader1
trader1's picture

Did you show the bank rep your work or residency permit for Switzerland?

 

Fri, 08/26/2011 - 11:29 | 1604351 JJSF
JJSF's picture

I can confirm this. Even as a corporation if there is a US beneficial owner you will still be denied. There are other countries where this is happening as well. There will come a day where american assets overseas will just be readily handed over to the US gov in swap deals.

Fri, 08/26/2011 - 11:43 | 1604444 alien-IQ
alien-IQ's picture

which begs the question: what's the point of being an american citizen?

to say you belong to the club with the most guns?

not too compelling an argument.

or to quote Woody Allen/Grouch Marx/Sigmund Freud: "I would never want to belong to a club that would have someone like me as a member"

Fri, 08/26/2011 - 13:55 | 1604885 Debugas
Debugas's picture

what's the point of being an american citizen?

 

if you have a job your salary is still well above the rest of the most of the world.

Fri, 08/26/2011 - 14:39 | 1605072 GFKjunior
GFKjunior's picture

An expensive option for most but an invaluable asset is a second citizenship. Several countries offer a pay-for-residency program. I only know about the Saint Kitts and Nevis program but for 200,000 to 350,000 you get a fully legal second passport with visa free access to tons of countries including the European Union and Canada.

Fri, 08/26/2011 - 10:57 | 1604209 RobotTrader
RobotTrader's picture

 

 

Speaking of gold, why can't UXG get a bid?  Rod McEwen must be steaming.  I've been sitting on that dog for 2 years and it simply will not move.

Meanwhile, Tiffanys is getting all the love today.

Fri, 08/26/2011 - 11:01 | 1604239 alien-IQ
alien-IQ's picture

sycophantic whore.

Fri, 08/26/2011 - 11:09 | 1604272 nope-1004
nope-1004's picture

What is UXG?  Who is Rod Mcewan?

I think u mentioned gold Robo.... are your references eluding to the large stack of physical gold and silver I have stashed in my basement?

It's not steaming.  It's not looking for a bid.  And it's not having its deposit rates rise anytime soon.

Get a grip dude.  You're totally a paper shill.

Fri, 08/26/2011 - 11:56 | 1604494 mkkby
mkkby's picture

If they raise the taxes or make it illegal for dealers to trade with consumers, your basement stash will be worth a lot less.

I suggest people stop deluding themselves.  You should not be 100% in PMs.  They can change the rules any time.  They won't let you pay off your mortgage with one coin, and they won't let the price rise to where it defeats their determination to keep the ponzi going.

Fri, 08/26/2011 - 11:11 | 1604285 tmosley
tmosley's picture

lol, you've been in a gold stock for two years?

No wonder you keep insulting Gentleman Jim and Co.  You are pissed off that they are making lots of fiatscos on physical metals while you just lose, lose, lose on paper crap.

Fri, 08/26/2011 - 11:20 | 1604316 lieutenantjohnchard
lieutenantjohnchard's picture

you didn't hear his most recent bray? why, by golly, all this time he's been buying gold bullion, he said (lied). brayed that he's been making money via bullion hand over fist, thank you very much. riiiiiiiiiiiiight! makes sense to me. buy something, and then trash it to high heaven.

Fri, 08/26/2011 - 14:34 | 1605045 tmosley
tmosley's picture

Reminds me of our resident eugenicist and high priest of death worship, who owns silver, but constantly talks it down like he's fucking George Soros or something.

Fri, 08/26/2011 - 11:31 | 1604360 snowball777
snowball777's picture

Because you're a moron, Robo. Keep holding that purse...I mean bag.

Fri, 08/26/2011 - 10:59 | 1604210 swissaustrian
swissaustrian's picture

Coordinated action by the FED and the SNB to devalue the CHF right after Bernankes speech.

Benny met Phillipp at the BIS and leaked his speech to him, so the SNB could intervene on the "NO-QE3-yet"-news triggering a short squeeze.

Fri, 08/26/2011 - 10:57 | 1604213 Apostle of Unknown
Apostle of Unknown's picture

They know the amount of Eastern European loans denominated in Swiss Francs. An expensive CHF makes those loans more risky.

Fri, 08/26/2011 - 10:58 | 1604215 lieutenantjohnchard
lieutenantjohnchard's picture

from the swiss point of view i like the idea. it helps protect domestic exports in a dog eat dog world of currency debasement, and serves notice that there's a cost for protection if you want it.

Fri, 08/26/2011 - 10:58 | 1604218 SheepDog-One
SheepDog-One's picture

DOW up +100 from down -100 in minutes? Totaly broken.

Fri, 08/26/2011 - 11:01 | 1604238 --Freedom--
--Freedom--'s picture

Now back down to -15, what a fucking farce. NASDAQ was up 1.6 percent at one point, now dropping again.

By the way, nice call on no qe for the last few weeks.

Fri, 08/26/2011 - 11:02 | 1604243 SheepDog-One
SheepDog-One's picture

Thanks! Now we'll see what the manic depressive market robots do with it.

Fri, 08/26/2011 - 11:18 | 1604306 gmrpeabody
gmrpeabody's picture

Hedges and their stops wipsawwed to the max. This can be painful.

Fri, 08/26/2011 - 11:24 | 1604326 HAL 9000
HAL 9000's picture

Has the mission been completed? You know that I have the greatest enthusiasm for it.

Fri, 08/26/2011 - 11:20 | 1604313 TradingJoe
TradingJoe's picture

Algo bulls must be totally and utterly in full desperation mode! They night know what's coming, eh?! Volume is minimal to non existent, a perfect time to scalp a little more before it's lights out! Watch the action in the VIX/VXX calls they tell you what's coming! I don't trust this fake ramp at all!

Fri, 08/26/2011 - 10:59 | 1604227 Tense INDIAN
Fri, 08/26/2011 - 11:00 | 1604230 alien-IQ
alien-IQ's picture

a rumor which has conveniently put the brakes on the EUR/USD decline.

What were the odds huh?

Fri, 08/26/2011 - 11:00 | 1604231 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Yeah, but unlike fiat and stock certificates, you can't burn gold to keep warm in the coming winter of discontent.

Fri, 08/26/2011 - 11:03 | 1604253 unky
unky's picture

But you can put it in your tooth. Or wear it as jewlery as so many indians and pakistani women do arround here ;- )

Fri, 08/26/2011 - 11:15 | 1604298 Abitdodgie
Abitdodgie's picture

Are you English by any chance

Fri, 08/26/2011 - 11:02 | 1604244 Long-John-Silver
Long-John-Silver's picture

Clearance Sale on physical Gold. Get it before Sovereigns buy it all.

Fri, 08/26/2011 - 11:03 | 1604254 Ausperity
Ausperity's picture

"deranged central banker counterparty risk"... nice!  I think we need a VIXBEN

Fri, 08/26/2011 - 11:03 | 1604255 Oh regional Indian
Oh regional Indian's picture

This is the real game for now, Stox and Bunds aside.

CurrentSea Wars, FTW!

Vivek

http://aadivaahan.wordpress.com/2011/08/24/precursor-03-bottom-falling-out-still-still-and-a-gander/

Fri, 08/26/2011 - 11:40 | 1604422 VisualCSharp
VisualCSharp's picture

I wish whoever codes this Web site would remove the ability to include hyperlinks. These blog spammers are polluting the comment sections and it's getting really old.

Fri, 08/26/2011 - 11:07 | 1604267 becky quick and...
becky quick and her beautiful mouth's picture

open a swissquote account. deposit money in chf. 

Fri, 08/26/2011 - 11:09 | 1604273 A Man without Q...
A Man without Qualities's picture

Swiss banks have been charging non residents for a while now, but the amounts were fixed, so if you had a large account, it didn't matter too much.  Maybe they are talking about charging as a percentage?  Anyway, big fucking deal, most of the accounts are for people looking to keep money away from the tax man.  If they really want to fix it, they should end Swiss secrecy rules....

Fri, 08/26/2011 - 11:21 | 1604318 TradingJoe
TradingJoe's picture

CHF at these levels hurt the Swiss economy, they like it going down, makes all goods and services there cheaper, still it's one hell of an expensive place!

Fri, 08/26/2011 - 11:24 | 1604325 gwar5
gwar5's picture

It's come to this... sound money is now a 'curse'.

 

With twisted motives like that it's little wonder all the money in the world is crap.

 

Fri, 08/26/2011 - 11:27 | 1604341 alien-IQ
alien-IQ's picture

At this point, I would not be surprised to see Apple's corporate headquarters raided and all executives jailed for failure to carry sufficient debt.

This shit is beyond broken...it's a fuckin joke.

Fri, 08/26/2011 - 11:25 | 1604331 alien-IQ
alien-IQ's picture

USD (DXY) tanking hard...which, I guess, was the desired effect of this joke. Sure did help the market move up though...but I'm sure that was just a collateral benefit that was entirely unintended.

Fri, 08/26/2011 - 11:29 | 1604352 snowball777
snowball777's picture

No problem cuckoos, I'll hide them pretty notes under my mattress.

Fri, 08/26/2011 - 11:36 | 1604397 Mallenet
Mallenet's picture

Oh right - and the off shore market is just in one place: The biggest offshore market is New York, number 2 is London: the Swiss, those nutural jew-rapers are not even a 3rd league player: rape starts with the big bugger who is rapist, not the pure virgin who has a fantasy or two!

Hitler was right about the banking system, 50% right about the jews, 100% wrong about the world: I call that a near miss in political terms today!  Hell - Americans cooked a vote for a Bush that was burned before it took a podium!  Know that is Biblical, but the only tablets involved were taken by him!  A modern 'jew'!

The people of the world work to help each other: to lessor or greate degrees.  According to the Jew, we are all monkeys and placed here to serve them (ref: Rothchilds, et al)?

After working with these self serving mother-fuckers, my view has become 'kill a jew a day: keep problems away'!

I will never trust another Jew.  I will never give time to another jew. If a jew never existed in my life, I will kill it.

Am I like Adolf? - I suspect we both knew Jews: any people that comes from us but calls us 'monkey' needs to be eradicated in a permanent way - for they are racists of a secular kind and do not deserve to be treated as human.

Call me inhuman - you can speak bad but be my brother: call me 'monkey' and your sorry mix of tribal blood will be burned from this planet.

I am not anti-jew: I am anti-anyone who thinks they are elite.

 

Fri, 08/26/2011 - 11:42 | 1604438 VisualCSharp
VisualCSharp's picture

Holy crap dude, you need some serious help.

Fri, 08/26/2011 - 12:02 | 1604520 alien-IQ
alien-IQ's picture

RE: Update = irrelevant. Mission accomplished. Dollar tanked, market spiked and it will stay that way since now the European market is closed and powerless to do anything about it and the Robots are now in full control of the US Ponzi (AKA Stock Market).

Resistance is Futile. We have been assimilated.

Fri, 08/26/2011 - 12:11 | 1604556 Fix It Again Timmy
Fix It Again Timmy's picture

What a prissy swissy, what the hell is next? 

Fri, 08/26/2011 - 12:57 | 1604709 CYBERTOOTH
CYBERTOOTH's picture

DUDES, THE SWISS FRANC HAS SOME GOLD BACKING -- I think 20% -- UNLIKE EVERYBODY ELSE.  And the Swiss are heavily armed, which makes their semi-fiat currency more bullet proof.  I'm up 23% in FXF so patooie on youie.

Fri, 08/26/2011 - 13:19 | 1604779 CYBERTOOTH
CYBERTOOTH's picture

So apparently I'm wrong on the SF being backed by gold, but at least they have very low inflation?  Anyway, I've made a ton of money in FXF over the last year and they ARE heavily armed and grumpy.

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