Tag Archive: Swiss Franc

SNB Spent $68 Billion On Currency Manipulation In 2016

2017-03-24

by

2017-03-24

SNB Intervention, 2010 - 2017
While Donald Trump has repeatedly expressed his displeasure with China for manipulating its currency, he appears to have recently figured out that over the past 2 years Beijing has been spending hundreds of billions in dollar to strengthen, not weaken, the Yuan and to halt the ~$1 trillion in capital flight from China.

Read More »

What Will Trump Do About The Central-Bank Cartel?

2017-02-14

by

2017-02-14

Euro Banks find it increasingly hard to obtain US dollar credit
The US is by far the biggest economy in the world. Its financial markets — be it equity, bonds or derivatives markets — are the largest and most liquid. The Greenback is the most important transaction currency. Many currencies in the world — be it the euro, the Chinese renminbi, the British pound or the Swiss franc — have actually been built upon the US dollar.

Read More »

Here Are The Best Hedges Against A Le Pen Victory

2017-02-13

by

2017-02-13

France "Risk" Over Germany
On Friday, after it emerged that as part of Marine Le Pen's strategic vision for France, should she win, is a return to the French franc as well as redenomination of some €1.7 billion in French (non-international law) bonds, both rating agencies and economists sounded the alarm, warning it would "amount to the largest sovereign default on record, nearly 10 times larger than the €200bn Greek debt restructuring in 2012, threatening chaos to the world...

Read More »

Europe Proposes “Restrictions On Payments In Cash”

2017-01-27

by

2017-01-27

European commission
Having discontinued its production of EUR500 banknotes, it appears Europe is charging towards the utopian dream of a cashless society. Just days after Davos' elites discussed why the world needs to "get rid of currency," the European Commission has introduced a proposal enforcing "restrictions on payments in cash.

Read More »

The US Dollar Is Now Overvalued Against Almost Every Currency In The World

2017-01-24

by

2017-01-24

World Map
In September 1986, The Economist weekly newspaper published its first-ever “Big Mac Index”. It was a light-hearted way for the paper to gauge whether foreign currencies are over- or under-valued by comparing the prices of Big Macs around the world. In theory, the price of a Big Mac in Rio de Janeiro should be the same as a Big Mac in Cairo or Toronto.

Read More »

How Derivatives Markets Responded to the De-Pegging of the Swiss Franc

2017-01-13

by

2017-01-13

bank of england
In a Bank of England Financial Stability Paper, Olga Cielinska, Andreas Joseph, Ujwal Shreyas, John Tanner and Michalis Vasios analyze transactions on the Swiss Franc foreign exchange over-the-counter derivatives market around January 15, 2015, the day when the Swiss National Bank de-pegged the Swiss Franc. From the abstract.

Read More »

Which Of These Would You Rather Have In Your Safe?

2016-12-10

by

2016-12-10

Safe
Let’s say you have two equal size safety deposit boxes. One box you completely fill up with stacks of $100 bills. The other box you fill up with gold. Which of the two is “worth” more? It’s easy to calculate. A stack of 100x $100 bills is 6.14 inches long, 2.61 inches wide, and 0.43 inches tall. That’s a volume of 6.89 cubic inches (112.92 cubic centimeters… and we’ll use the metric system from here on out because it really does make more...

Read More »

The War On Cash Is Happening Faster Than We Could Have Imagined

2016-12-03

by

2016-12-03

It’s happening faster than we could have ever imagined. Every time we turn around, it seems, there’s another major assault in the War on Cash. India is the most notable recent example– the embarrassing debacle a few weeks ago in which the government, overnight, “demonetized” its two largest denominations of cash, leaving an entire nation in chaos.

Read More »

Swiss banks taking more risks to compensate for record-low interest rates

2016-11-28

by

2016-11-28

Swiss Bank Risk
Swiss banks focused on property lending are taking more risks to compensate for the impact of record-low interest rates, increasing the threat of a real-estate bubble, Swiss National Bank Vice President Fritz Zurbruegg said.

Read More »

Dollar Illiquidity Getting Critical: A $10 Trillion Short Which The Fed Does Not Understand

2016-11-17

by

2016-11-17

Dollar Index vs G7 Inflation
In the latest report from ADM ISI’s strategy team, “Dollar Liquidity Threat is Getting Critical and Fed is M.I.A.”, Paul Mylchreest argues that mainstream economic luminaries (like Carmen Reinhart) are finally acknowledging the evolving crisis due to the dollar shortage outside the US, a topic which even the head researcher at the BIS shone a spotlight on yesterday suggesting that the strength of the dollar, not the VIX is the new "fear...

Read More »

The Swiss-tuation: Negative LIBOR

2011-08-17

by

2011-08-17

[unable to retrieve full-text content]We're through the looking glass, people! Not only is Abercrombie & Fitch paying people not to wear its clothing, but now some bank somewhere claims to be getting a negative rate to lend Swiss francs in the short term to another bank.

Read More »