On September 6th, 2011 the Swiss National Bank (SNB) was aiming for a substantial and sustained weakening of the Swiss franc after Swiss companies threatened to leave because the rising franc reduced their exports. The SNB would no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20. The SNB set out to enforce this minimum rate with the utmost determination and it began to buy Euros in unlimited quantities.
Socrates has been warning about January for the last year. Here is the forecast array on a daily level and it pinpointed the rise in in volatility for today the 15th with a Panic Cycle and turning point due as well as we can see.
What this proves is that FUNDAMENTAL analysis is really bogus because it boils down to opinion and nothing else. Everything is CONNECTED. How could the the computer project these targets and that the peg would fail? It is only monitoring capital flows. The abandonment of the peg is more than just a vote against the Euro. It is more than just the departure of the Greeks as a member.
The Swiss are bailing out of the peg because the European Central Bank (ECB) will more-likely-than-not begin buying sovereign debt of its member states. We are recommending to clients to off-load EVERYTHING you possible can to the ECB and say thank you very much. Our models are warning this is the culmination of the bond bubble and it is the ECB who is buying the top.
Germany offered Greece 100 year debt just to stay in the Euro. Greece should exit now while they can and DEFAULT on the debt owed. The system is so corrupt you would not believe what will happen here. Banks use member debt as RESERVES. Because this is government debt, it is considered “safe” and is not marked-to-market. As long as a member still pays something, then their debt is still reserve quality. If they default, then the banks are forced to show the loss.
Full article: Swiss Peg Collapses – The Euro’s Nightmare (Armstrong Economics)