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Sunday, March 30, 2014

USD/CHF: SNB Prepared To Use Negative Interest Rate To Defend Its Cap On The CHF, Says SNB's Fritz Zurbruegg

Author thomas ramseyer
Negative interest on accounts - JOKE of the Millenium
As the Swiss National Bank (SNB) is obliged by law to change any amount held in a current account into bills and coins, this measure to be taken does not remedy the growing accounts of Swiss Franc holders.

1) If the US-Administration does not achieve a veritable war on European soil to be kicked off, the safe-haven-seekers will not buy other currencies not against CHF nor against other currencies.

2) The ones aiming at selling their currencies against CHF, will not be stopped by negative interest rates from doing this.

3) As those people are smart money people they will exchange their current-account assets for bills stacking them somewhere in a stronghold together with their real values throughout Switzerland.
(Everybody old enough still knows by experience this happened already in the Nineteenseventies roughly fourty years ago.)

The only remedy for weakening the Swiss Franc will be the relative strengthening of the economies of other states.

Some of the keyfactors are - just read your books - the Trade Balance, Balance of payment, Public debt, External debt and the sort.

The actual geopolitical situation given - the entire world is going to suffer from an economical setback due to the sanctions to be taken envisaged by the US-Administration and its vasalstates.

The embargos on Russia will hurt the whole West-Northern-Hemispherian countries.

Maybe another reason for the US-Administration to kick of a war in Europe is the flight of frightened Europeans into the USD.

0) The Swiss National Bank must stop talking about useless measures to be taken for the sake of not loosing its credibility.

1) Consider China's Renminbi as safe heaven currency as well. At the end of the day, the currency of a country with a strong economy producing high standard durable goods is much safer than some home-printed papermoney in the eye of a heavy storm.

2) "Rationality" allows people to buy Swiss Francs despite the Swiss National Bank Zurbregg's threats to invent negative interest on accounts. Those may stick to buying Swiss Francs.

3) Small people would rather buy Gold Coins.

Also read:
Lead by the FED major central banks pour liquidity into monetary system.
FED: USD 200 bio. SNB USD 6 bio. (see tender of USD 4 bio.) Major names to swallow the lure. FED may buy USD abroad to flood foreign economies with liquidity.
SNB already has partly neutralized this effect by raising USD 4 bio by having investors tender.

Zunehmende Globalisierung entspricht schleichender Amerikanisierung
Es war ein Einfaches für die Bevölkerungen hüben und drüben, den US-Dollar als Welt- bzw. Leitwährung zu akzeptieren. Schliesslich sähe die Welt ohne den unter der Führung amerikanischer Streitkräfte organisierten und gebündelten Widerstand der Alliierten in der Schlussphase des Zweiten Weltkrieges ganz anders aus.
Ausserdem weist er darauf hin, dass CIC nur nach Belieben der Amerikaner investieren kann. Die US-Regierung sieht die nationale Sicherheit gefährdet, sollte China mehr Einfluss auf die Amerikanische Wirtschaft ausüben können. Staatsfonds aus dem mittleren und fernen Osten haben in letzter Zeit mehrere Milliarden USD in westliche Unternehmen investiert.

copyright thomas ramseyer