Skip to comments.Switzerland and Britain are now at currency war
Posted on 01/03/2013 11:49:37 PM PST by bruinbirdman
It seems you cant debase your coinage these days even if you try.
The Bank of England is straining every sinew to drive down sterling with quantitative easing, and what happens?
The Swiss National Bank trumps Threadneedle Street with an outright blitz of Gilt purchases. They just print it, and buy.
The Swiss and UK central banks are effectively fighting a "low intensity" currency war against each other. It has come to this.
Here is the offending chart from the IMF (Picture editor's note: apologies for poor quality, unable to find better version):
And this is what the Swiss did to Euroland a quarter earlier:
One awaits with curiosity to see what will happen when Japan fifteen times the size kicks in with its own nuclear plans to drive down the yen, and Asia follows suit.
The latest IMF data of central bank holdings (`COFER) shows the biggest jump in sterling bonds by advanced central banks ever recorded. It jumped from $79bn to $98bn in the third quarter.
These holdings are usually stable so it is obvious that the SNB is responsible. The Swiss are already sated on eurobonds as they frantically intervene to hold the franc at 1.20. By their own admission, they have been diversifying energetically.
Analysts say the SNB has already bought $80bn of EMU bonds, enough to cover half the budget deficits of Euroland over the last year. It has been acting essentially as a conduit for capital flight from Italy to Germany.
It has since branched out, allegedly into Aussies, Loonies (Canada), Scandies, Won?, Real? but above all pounds. "There arent many places to go in this ugly contest if you dont like the euro, dollar, yen," said David Bloom, currency chief at HSBC.
"Everybody is trying
(Excerpt) Read more at blogs.telegraph.co.uk ...
The predictor was correct.
We all must face the fact that the Book of Revelation is not wrong: there must be a single global currency in place for the prophecy to come true.
Corrupt, vile, wicked men like George Soros will be in charge of the global "reset" of all currency. Wouldn't you like that kind of power?
They will be able to dictate who get a new Quadrillion "World Dollars" or whatever they call it.
Fiat money has always been a shell game based on faith, trust, and hope. The only problem is, it is also based on sinful man.
Gold and Silver are universal money.
Co-inflation, which is where central banks each print money at about the same rate. The FX cross doesn’t change much so the low-information citizen doesn’t get alarmed by a “collapse” of his currency exchange rate, but what will happen is the prices of real things outside of this cabal will creep up. Likely candidates are oil and imported foodstuffs.
And rare earth minerals, before too much longer.
It would be interesting to know whether the Norwegians are also doing this, as they seem keen to force their strong kroner down to shadow the Euro.