The Swish of the Swiss

The new or rather renewed phrase on every bodies lips after yesterday’s stunning bombshell, (delivered with precise laser guidance by the Swiss central bank), is “currency wars”. Previously this phrase had been reserved for the supposed currency disagreements between the USA administration and Chinese officials. The accusation, that the Chinese were manipulating their currency to the detriment of world trade and in particular the dollar’s purchasing power, was an accusation (arguably misplaced) that was re-produced throughout most mainstream media channels for the majority of 2010-2011. Extending the war analogy further ‘friendly fire’ is now incoming from the least likely source..

There is no “currency warfare”, the attraction of the Swiss franc and their banking system for the wealthy has existed for decades. Once central governments and banks adopted zirp policy, combined with injections of huge liquidity into the global financial system, it was inevitable that the Swiss would ‘suffer’ currency flight and wealth flight… read the full article

Source: FX Central Clearing Ltd. (FXCC BLOG)