Swiss Franc throws in the towel
06-Sep-2011Just before 0900 hrs this morning the Swiss National Bank announced it will be fixing the value of the Swiss Franc to the Euro at a rate of 1.20.
In that moment time stood still.
Slowly the news sank in as it dawned on anyone with an interest in fiat currencies that the only strong currency left in the world had finally thrown in the towel. The SNB said that its currency had become massively over-valued and indicated that it would buy an unlimited number of Euros whatever the risk to maintain that value. Well, as they say where I come from - good luck with that one my friend.
Gold, which had risen in early trading to a new high of $1,921, fell 3% immediately the announcement was made but within the hour was back testing its new found highs once more.
Within a matter of minutes of the announcement, the Euro surged 9% - or as haters of fiat currencies prefer to say, the Swiss Franc FELL in value by 9%.
And so the last strong global currency joins its friends - destined for devaluation along with the rest of them - or , again to revert to my vernacular, another currency goes down the crapper. The only thing I do not understand is why gold remains so cheap. Still it is early days, very early days indeed.
Everything we said would come true, has come true - stay with the programme because that odd guy who stands at the crossroads with the placard reading "The end is nigh" is more on target than he realises.
Back up the truck and fill up with as much gold and silver as you can afford.
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