Category: Aggregated

The Swiss central bank’s recent move to de-peg the Swiss franc from the euro reminds us of the importance of choice in currency. By pegging the Swiss franc to the euro, the Swiss central bank was in effect subsidizing the euro by refusing to compete with it. If carried into the long term, this would have meant a de facto monetary union between the euro and the franc. Fortunately for most people however, the Swiss central bank maintained its legal independence from the euro and the peg was eventually ended, thus freeing the holders of Swiss francs from the new … Continue reading →

Switzerland’s central bank said today in a statement that it had agreed with the People’s Bank of China to establish clearing arrangements in Switzerland for renminbi trading and extend a pilot scheme for clients of Swiss banks. “It will promote the use of the renminbi by enterprises and financial institutions in cross-border transactions, and promote facilitation of bilateral trade and investment,” the Swiss National Bank said. Alongside the pact, the PBOC will extend a pilot scheme for foreign investors to clients of Swiss banks, with a quota of up to 50 billion yuan ($8 billion). From Davos, Reuters adds: “We … Continue reading →

While the Western world was watching and grieving over the slaughter in Paris last week, and my colleagues in the media were fomenting a meaningless debate about whether President Obama should have gone to Paris to participate in a televised parade, the feds took advantage of that diversion to reveal even more incursions into our liberties than we had known about. We already knew that the NSA, our 60,000 domestic spies, has captured and retained the contents of nearly all emails, text messages, telephone calls, bank statements, utility bills and credit card bills of all Americans since 2009. We already … Continue reading →

“As nightfall does not come at once, neither does oppression. In both instances, there is a twilight when everything remains seemingly unchanged. And it is in such twilight that we all must be most aware of change in the air – however slight – lest we become unwitting victims of the darkness.” ― Supreme Court Justice William O. Douglas No matter what the politicians say about how great America is and how we, as a people, will always triumph, the fact is that the nation seems to be imploding. Despite the dire state of our nation, however, you can rest … Continue reading →

Well, that is what one might conclude after the events of the last week.  As is well-known, the Swiss National Bank decided to remove the peg/floor in the exchange rate for the Franc against the Euro.  This move was made suddenly, with no announcement or even a hint beforehand. There is so much wailing and gnashing of teeth in the financial media.  There is much I might say about this event; I will use the writing of two of the more prolific economic financial writers of today to help me on my way.  Both John Mauldin and Ambrose Evans-Pritchard (with … Continue reading →