From Sober Look:
The Bank of Japan is taking the concept of quantitative easing to a whole new level. Unlike the Fed who is only focused on treasuries and agency MBS securities, the BOJ is authorized to purchase ETFs and REITs in addition to JGBs.
Reuters: – “The BOJ can buy whatever amount of ETFs and REITs it can. It can even buy government bonds more forcefully, as if it were to [...]
By law, a referendum must be held if 100K signatures are compiled….they are 10,000 shy of the total. Supposedly >1000+ tons sitting outside Switzerland.
to understand all this, people should go to Jim Rickards’ blog
Today’s AM fix was USD 1,696.00, EUR 1,337.75, and GBP 1,062.06 per ounce.
Yesterday’s AM fix was USD 1,708.50, EUR 1,355.09and GBP 1,074.53 per ounce.
Cross Currency Table – (Bloomberg)
Gold climbed $6.70 or 0.4% in New York yesterday and closed at $1,700.30. Gold in euro’s also rose to near record highs prior to falls soon after the ECB interest rate and bond buying announcement.
Silver outperformed once again and surged to $32.987 [...]
Since instituting a peg to the euro of €1.20 to 1 in August of 2011, The CurrencyShares Swiss Franc ETF (AMEX:FXF) has lost 37%. The Swiss franc has also lost 31% versus the Japanese yen.
The Swiss were the first to blink in the game of chicken in who will print first to stave off the debt deflation emanating from the periphery of the eurozone. But the Swiss do not [...]
LONDON -(Dow Jones)- Asset manager clients of UBS AG (UBS) last week sold euros at the fastest pace since November 2011, the bank said Monday, illustrating a “torrid” week for the single currency.
Overall euro flows for the period were the second-largest of the year so far, the Swiss bank, the fourth-largest currencies-dealer by market share, said in a note to clients.
“The biggest damage to the currency was done not [against [...]
And like that, Europe is broken again. Following a spate of negative European data (what else is there), including a miss in German industrial production as well as a miss in UK manufacturing output, all eyes are again on Spain, especially those of the bond vigilantes, who have sold off the sovereign European bond market, sending the Spanish-Bund spread to over 400 bps for the first time since December 2011. [...]
In a move that will surely shock, shock, the monetary purists out there, the Bank of Japan has just gone and done what we predicted back in May 2011, with the first of our “Hyprintspeed” series articles: “A Look At The BOJ’s Current, And Future, Quantitative Easing” (the second one which discussed the imminent advent of the ¥1 quadrillion in total debt threshold was also fulfilled three weeks ago). So just what did [...]
EUR/CHF has so far proven successful as the pair has not only remained above 1.20, but has yet to even test it.Talks of the huge EUR/CHF demand from SNB – has filtered to demand, possibly in AUD, NZD, GBP, JPY as SNB diversify its reserves linked to the EUR/CHF “unlimited foreign currencies buying” pledge.EUR/CHF hit 4-month lows around 1.2025, its lowest levels since Sep 15 1.2015 – less than 10-days [...]
Back in January 2010, when in complete disgust of the farce that the market has become, and where fundamentals were completely trumped by central bank intervention, we said, that “Zero Hedge long ago gave up discussing corporate fundamentals due to our long-held tenet that currently the only relevant pieces of financial information are contained in the Fed’s H.4.1, H.3 statements.” This capitulation in light of the advent of the Central Planner of [...]
by Alexander Gloy of Lighthouse Investment Management
Inside Job At The SNB?
The official version:
“Enormously dedicated” SNB chairman Philipp Hildebrand purchases 500,000 USD days before he devalues the Swiss Franc by 10%.
This plain-vanilla spot currency transaction becomes “water cooler” story at Bank Sarasin (which wouldn’t even open accounts below 1 million minimum deposit).
An IT employee takes pictures of incriminating documents, briefly weighs the consequences of breaking Swiss banking secrecy, deems the latter porous [...]
Something is decidedly strange in Europe today: while there has been a favorable shift in bond spreads with the 10 year BTP dropping to 6.4% (although still waiting for LCH to react to its margin cut even as spreads are 100 bps wider) it is the 3M EUR/USD cross currency basis swap that has us confused as it has mysteriously moved violently tighter, from -140 bps to -121 bps [...]
November 21, 2011
On what the ECB will do:
”The ECB has expanded its balance sheet mightily under Trichet. We have a new leader and we have a new imperative. I dare say Europe is going to print money.”
On central bank monetization and its implications:
“The Italian yields did not fall on their own. It raises questions of overall integrity of market prices. In the US the Fed has nationalized the yield curve. [...]
To print or not to print: the choice of whether to open the European Pandora’s box, which as wesuggested two months ago is an interesting but ultimately moot thought experiment, has suddenly become the only talking point for TV pundits desperate for eyeballs and suckers to buy their books, who are now experts not only on monetary policy but European monetary policy. And while 99% of these empty chatterboxes should [...]
John Taylor of hedge fund FX Concepts:
Last week, when the Swiss National Bank announced that they would support the euro against the
Swiss franc at the 1.2000 level for the foreseeable future, they took a bold and risky step. By buying all currencies offered, presumably the vast majority will be euros, the Swiss have lost control of their
money supply. This is the ultimate in quantitative easing. The Eurozone [...]
This is exactly 100% worse than the 4.1% drop predicted. The reasons according to Reuters: “companies are delaying investment due to worries about a strong yen, slackening global growth and slow progress in reconstruction from the March earthquake.” Of these the Yen is by far the most relevant. And thanks to the SNB, the Bank of Japan, whose currency has suddenly become the only [...]
September 6, 2011
Holy Red Screen, Batman! If you haven’t seen the news, the Swiss National Bank has just announced that it is putting a ceiling on the franc’s appreciation against the euro… effectively abandoning its economic sovereignty and putting its future in the hands of woefully corrupt and incompetent bureaucrats.
On the news, the franc fell off a cliff, dropping almost 10% INSTANTLY. Gold priced [...]
Wall Street fell for a third straight day on worries that Europe can’t take care of its debt dilemma. Many Europeans are trading in their euros for Swiss francs. Now the Swiss National Bank has put a minimum exchange rate of 1.20 francs to the euro. The reason is the present value of the franc is a danger to the financial system. The SNB [...]
Confirming that this is a market for idiots, by idiots, was the 4 am response in the price of gold, which following the SNB’s Swiss Franc peg announcement did not surge, as it should have considering that the SNB just singularly changed the role of the CHF from a “flight to safety” to a carry currency, making gold the only island of stability in [...]
Nouriel Roubini is tweeting up a storm this morning. In case you missed it, he doesn’t expect a QE announcement today but says one is inevitable by year end. Expect the same for developed economies everywhere.
The new QE season is about to start as advanced economies sink into a double dip: BoJ, BoE, SNB, Fed, ECB…
BoE MPC members Weale, Posen and others openly speaking of more QE
SNB already [...]
The “panic” trade had a few hours to eat dinner, and now it’s back to business. As Asia opened, the kneejerk reaction to Europe closing is that, naturally, Europe will open in a few short hours, this time however with fresh fears of what the SNB might be cooking if it needs Fed assistance to sustain its local banks’ dollar margin calls. The result: [...]
The FRBNY has just announced that in the week ended August 17, it lent out $200 million to not the ECB, not the BOE, but the “most stable” of all banks: the SNB. This is the first use of the Fed’s Swap Lines since March, and the most transacted under this “last ditch global bailout swap line” (see more on how the Fed bailed out [...]
Aug. 4, 2011, 8:25 PM
In a note out tonight, BTIG’s Dan Greenhaus looks ahead to next Tuesday’s big Fed meeting.
Ultimately, he expects little change in either policy or statement, other than the obvious acknowledgment that things aren’t necessarily going as planned.
Greenhaus still isn’t on the QE3 bandwagon, like so many are, but he does lay out some possibilities of what you might call QE2.5.
The Fed [...]
According to Credit Suisse, this is just the beginning of Transpacific central banking warfare. Per Dow Jones: “The Japanese Ministry of Finance’s JPY-selling operation Thursday may be the first in a series of interventions over the coming weeks to curb further rises in the unit, and may have come Thursday in part as the Swiss National Bank’s move Wednesday to weaken its own currency made [...]
09:30 ZURICH, SWITZERLAND – The Swiss National Bank reacted Wednesday morning 3 August to the rapid rise of the Swiss franc, calling it “massively overvalued” and saying it will “very significantly increase the supply of liquidity to the Swiss franc money market over the next few days.”
“This current strength of the Swiss franc is threatening the development of the economy and increasing the downside risks [...]
When the President of the US shit cans Wall Street’s good little house nigger at the DOJ and replaces with him with someone respectable like Ralph Nader, there might actually be hope and change in the US.
Under Swiss law, the Banker-Client relationship is treated as sacrosanct as the Doctor-Patient relationship.
The same is actually true in the US in a perverse way, since the Secretary of HHS [...]
GREECE’S SAMARAS SAYS EU BAILOUT MUST BE RENEGOTIATED
GREECE’S SAMARAS SAYS GOVERNMENT PLAN IS WRONG
GREECE’S SAMARAS SAYS WON’T ACCEPT BEING BLACKMAILED
GREECE’S SAMARAS SAYS NEED TAX RATE REDUCTION FOR GROWTH
Next up: Linda Green signs the Greek agreement to hand over all its assets to the world banker cartel.
Elsewhere, the SNB is not having a good day as the smart money continues to seek the flight to safety of the [...]
From Nic Lenoir of ICAP
We have already discussed at length European sovereign spreads, the cost of keeping the PIIGS in the eurozone, the inevitable break-up down the road of the EMU, and how EURCHF is ratting out major stress in the system at a time when everybody is trying their best to look the other way. Today adding to our arsenal of charts highlighting the [...]
by Bruce Krasting
Ben Takes Out the SNB?
There are a dozen different barometers for economic stress in the EU. They are all pointing higher. CDS and bond spreads are going through the roof. There are riots again. While it is not a new story, the fact that Belgium is now going center stage in the EU mess is a very interesting elevation of risk. Geographically speaking, we [...]