Category Archive: SNB

Former CEO Of UBS And Credit Suisse: “Central Banks Are Past The Point Of No Return, It Will All End In A Crash”

Remember when bashing central banks and predicting financial collapse as a result of monetary manipulation and intervention was considered "fake news" within the "serious" financial community, disseminated by fringe blogs? In an interview with Swiss Sonntags Blick titled appropriately enough "A Recession Is Sometimes Necessary", the former CEO of UBS and Credit Suisse, Oswald Grübel, lashed out by criticizing the growing strength of central banks...

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Weekly Sight Deposits: Investors hedge against Trump’s inflationary policy with Swiss Franc.

We explained the Trump reflation trade, where the Swiss Franc acts as the usual inflation hedge against the obviously inflationary policies of Trumpeconomics. Trump is about tax cuts - i.e. a fiscal deficit up to 10%, and about protectionism. Trump would restrict global trade and push up wages. According to Lars Christensen Trumpeconomics is also about monetary stimulus: Trump would push for a more jobs and a dovish Fed, same as his fellow...

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SNB sollte Bund bis 60 Milliarden ausschütten – nur so ist der Steuerzahler sicher

Letzte Woche gab die Schweizerische Nationalbank (SNB) bekannt, dass sie für dieses Geschäftsjahr eine Milliarde Franken an Bund und Kantone ausschütten wird. Von der Presse wird dies unterschiedlich interpretiert. Einerseits nimmt man mit Genugtuung zur Kenntnis, dass die SNB überhaupt eine Milliarde ausschütten kann. Andererseits wird mit Blick auf drohendes negatives Eigenkapital der SNB gewarnt, diese müsse dringend Reserven bilden.

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Did President-Elect Trump Just Inadvertently Kill The Golden Goose?

President-Elect Trump may have just unwittingly sowed the seed of an equity market draw-down which will send even more protesters into the streets of America. Donald Trump’s stated economic policies are clearly pro-growth and if he manages to implement his pro-business, anti-regulation agenda, in the longer term they have the potential to surpass the bold and successful initiatives of Ronald Reagan.

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Swiss National Bank won’t cut record low interest rate again, survey shows

The Swiss National Bank, which has the lowest interest rate among the world’s major central banks, may be done cutting. SNB President Thomas Jordan and his fellow policy makers will keep the deposit rate unchanged at minus 0.75 percent until at least the end of the first quarter of 2019, according to the median forecast in Bloomberg’s monthly survey of economists. That would mean ignoring the International Monetary Fund’s advice to fend off inflows...

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European break up now looks more likely, says Blond

If there’s one country with reason to resent the rise of populist movements, it’s Switzerland. Twenty-two months after it abandoned its 1.20-per-euro exchange-rate cap, the Swiss National Bank still finds the franc in focus every time there’s a major event that threatens to upset markets.

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Serious Flaws in ECB’s Economic Thinking

Marc Meyer shows that the European Central Bank has big flaws in their economic thinking. Lowering the ECB Deposit Rate means depressing the economy. The ECB takes the risk when it buys Greek bonds. Should Greek bonds devalue then the ECB equity ratio falls under zero and European banks write must write-down their ECB Deposits.

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Swiss National Bank agrees to pay out 1 billion francs annually

Today, the Swiss National Bank (SNB) announced a new agreement with the Federal Department of Finance, to pay the Swiss confederation and cantons CHF 1 billion per year, as was previously the case. The deal will run from 2016 to 2020, according to an official press release.

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Federal Department of Finance and SNB enter new distribution agreement

The Federal Department of Finance (FDF) and the Swiss National Bank (SNB) have signed a new agreement regarding the SNB’s profit distribution for 2016 to 2020. Subject to a positive distribution reserve, the SNB will in future pay CHF 1 billion p.a. to the Confederation and cantons, as was previously the case. In future, however, omitted distributions will be compensated for in subsequent years if the distribution reserve allows this.

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Swiss government opposes initiative to transform monetary system

The Swiss government urged rejection of a popular initiative that would transform the monetary system and end fractional-reserve banking, according to its dispatch to Parliament. The measure seeks to put the central bank solely in charge of money supply and forbid commercial banks from granting loans that aren’t fully backed by deposits, effectively ending the way banking has been conducted for centuries.

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We’re All Hedge Funds Now – Central Banks Become World’s Biggest Stock Speculators

At first, the idea of central banks intervening in the equity markets was probably seen even by its fans as a temporary measure. But that’s not how government power grabs work. Control once acquired is hard for politicians and their bureaucrats to give up. Which means recent events are completely predictable.

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SNB Sight Deposits November 7: No interventions, EUR/CHF under 1.08 with political jitters

Sight Deposits: show that the SNB has not intervened to sustain the euro, that dipped under EUR/CHF 1.08. We considered the 1.08 as line in sand for the SNB. The odds of Trump are rising. This causes fear and demand for Swiss Franc. The EUR/CHF fell to 1.0750. Speculators were net short CHF January 2015, shortly before the end of the peg, with 26K contracts. Then again in December 2015, when they expected a Fed rate hike, with 25K contracts. We see...

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Der SNB-Milliardengewinn täuscht Stärke vor. Tatsächlich ist die SNB so schwach wie nie.

Voller Stolz präsentiert die SNB ihr Zwischenergebnis für die ersten 9 Monate dieses Jahres: 28.7 Milliarden Franken Gewinn. Und die Medien kolportieren diese Zahlen unbedarft. Die Devisenreserven der SNB seien erneut gestiegen wird da behauptet; und zwar allein in diesen neun Monaten um 73 Milliarden auf sage und schreibe 666 Milliarden Franken. Solche Schlagzeilen sind oberflächlich und lenken von der grossen Gefahr ab, in welcher sich die SNB...

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Swiss National Bank Results Q3 / 2016: Volatility of Results is Increasing

Interim results of the Swiss National Bank as at 30 September 2016 The Swiss National Bank (SNB) reports a profit of CHF 28.7 billion for the first three quarters of 2016. But the volatility is rising: The SNB may lose 50 billion in one year and win 60 billion in the next year or the opposite.

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Und nun kommt der Nobelpreisträger daher und will uns weismachen, wir müssten den Mindestkurs wieder einführen

„Es kostet fast nichts, Franken im richtigen Umfang zu drucken.“ Das sagte der Wirtschaftsnobelpreisträger Joseph Stiglitz am World Economic Forum (WEF) in Davos anlässlich eines Interviews mit dem Tages-Anzeiger.

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Jim Grant Puzzled by the actions of the SNB

James Grant, Wall Street expert and editor of the investment newsletter «Grant’s Interest Rate Observer», warns of a crash in sovereign debt, is puzzled over the actions of the Swiss National Bank and bets on gold.

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L’argent des banques centrales finit dans les paradis fiscaux!

Nous savions que la crise avait laminé les finances des Etats, de l’économie publique et des familles. Jusque là rien de nouveau. Mais en finance, quand quelqu’un perd, il y a en général quelqu’un d’autre qui gagne la même somme et peut-être plus. A moins qu’il ne s’agisse de billets physiques que l’on flambe, c’est comme ça.Nous allons donc nous intéresser aux grands gagnants de la crise financière.

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SNB verteilt Bussenzettel über 1,5 Milliarden pro Jahr

Am 15. Januar 2015 hat die Schweizerische Nationalbank (SNB) erstmals Negativzinsen anstelle des Mindestkurses eingeführ. Unmittelbar danach stürzte der Euro um 20 Prozent ab und erholte sich seither auf knapp 1.10 zum Franken. Klarer und eindeutiger kann man nicht vordemonstriert bekommen, dass Negativzinsen den Euro nicht stärken, den Franken nicht schwächen. Negativzinsen bringen nichts – ausser Gewinne für die SNB.

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Swiss central bank can cut rates further if needed, says bank president Jordan

The Swiss National Bank can cut interest rates further into negative territory if needed, President Thomas Jordan said. “We have still some room to go further if necessary,” Jordan said Saturday in an interview in Washington with Bloomberg Television’s Francine Lacqua. Jordan, who is attending the annual meetings of the International Monetary Fund and the World Bank, noted that the bank has already pushed rates quite far.

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Switzerland’s central bank offers a glimpse behind the curtain

The Swiss National Bank is offering a rare look into how it sets monetary policy. A video of SNB President Thomas Jordan and fellow members of the governing board shows them beginning their quarterly policy assessment discussing the state of the economy with about 30 people.

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