The US vs Russia Debacle!
This article by Ken:
If you’ve visited Zero Hedge this morning, you’ll know that the Swiss National Bank has made some sudden, unexpected changes in policy that have roiled the currency exchange markets as well as the Swiss export and tourism industries.
As this article notes…
“Just before lunch local time, the Swiss National Bank (SNB) took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit its all time nominal high, was no more.”
Also mentioned is this outcome of the policy changes…
“However, the best soundbites today will surely come from US hedge funds which are just waking up to the biggest FX shock in years, and of course, any retail investors who may have been long the EURCHF, and who are not only facing epic margin calls, but are unable to cover their positions…”
So here we have yet another example of the Central Banking Cabal ripping off retail investors while simultaneously creating problems that can “only be solved by giving the Bank for International Settlements (BIS) more power over national central banks.” You can be certain that the central banksters and their traders were on the profitable side of the market moves this morning, because they, of course, knew what was coming. The international financial markets have never been anything but a rigged casino designed to extract wealth from the masses.
Another article notes the supposed cause of the SNB’s “shocking” changes…
“Removing the SNB peg takes out one of the biggest EUR buyers in the market. And of course, VERY notable this is happening 1-week ahead of the ECB, they possibly realised they could not continue to buy unlimited quantities when the ECB might print unlimited quantities.”
So the Swiss National Bank’s actions are supposedly a preemptive measure against the expectation that the European Central Bank will print more money. This, then, is a case of market turmoil created by national central banks working at cross-purposes, which is exactly what the Bank for International Settlements (BIS) is using as justification for centralized supranational control.
Yet another article shows this…
>>> From January 12, 2015:
The Swiss National Bank’s cap on the franc at 1.20 per euro will remain its key monetary policy tool, the central bank’s vice-chairman said in a television interview broadcast on Monday. “We took stock of the situation less than a month ago, we looked again at all the parameters and we are convinced that the minimum exchange rate must remain the cornerstone of our monetary policy,” Jean-Pierre Danthine told RTS.
From January 15, 2015:
Recently, divergences between the monetary policies of the major currency areas [translation: “national central banks working at cross-purposes”] have increased significantly – a trend that is likely to become even more pronounced. The euro has depreciated considerably against the US dollar and this, in turn, has caused the Swiss franc to weaken against the US dollar. In these circumstances, the SNB concluded that enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified. <<<
[Update 5 – 15 January 2015]
According to this USA Today article…
So what’s the solution? Wouldn’t you know it…
>>> What’s the Fed to do? George Selgin, senior fellow at the Cato Institute, is against any delay in the U.S. raising interest rates. Delaying, he warns, could lead to another asset price bubble that could pop and make a mess. David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at Brookings, says that getting the timing of the rate hike right is one “really tricky” issue to keep Yellen awake at night. It’s an art, not a science, and easy to mess up. Too early and recovery could be choked off. Too late and inflation could sap the Fed’s credibility. <<<
Needless to say, the Fed will get it wrong.
[Update 6 – 15 January 2015]
George Soros openly talks of collusion with China in building the New World Order
A reader has brought to my attention a 2009 FT interview of George Soros. At the 12 second mark…
…he drops this bomb…
“…So I think you need a New World Order that China has to be part of the process of creating it, and they have to buy in. They have to own it the same way as I said the United States owns… the Washington consensus… the current order…”
I’ve scanned both parts of the interview (here is Part 1), and they are chock full of reality checks for those who have bought-in to the East/West dialectic. I will be mining it for quotes and publishing a full article on its implications as soon as possible.
For the first three installments of this series, click here.