Currency Wars, Swiss style

As previously mentioned on this blog Currency is this decade's Weapon of Mass Destruction, and with the Swiss being the recipient of a lot of hot money of late they can bomb the market at will, at least in the short term.

From Bloomberg:

Switzerland opened a new round in a global currency war as fading economic growth forces policy makers to step up efforts to spur expansion.

The Swiss National Bank’s decision yesterday to cap the franc’s rate for the first time since 1978 marked a bid to protect trade hurt by the currency that last month strengthened to records against the euro and the dollar. The franc plunged 8.1 percent yesterday against the euro, the most since the creation of Europe’s single currency. It was little changed at 1.2058 per euro at 10:53 a.m. in London.

The initiative may leave Norway and Sweden vulnerable to unwanted gains in their currencies as countries such as Brazil and Japan fight to limit appreciation amid a flight from the euro debt crisis and near-zero U.S. interest rates. With Group of Seven finance chiefs set to hold talks this week, it also exposes the clash among policy makers counting on exports to offset slumping demand at home......read on

Greek bonds blowout to 97% yield for 1 year on back of German court ruling

(Reuters) - Germany's top court handed the country's parliament a greater say over euro zone bailouts on Wednesday, in a closely-watched ruling that could hamper Berlin's ability to act swiftly to counter a debt crisis that has plagued the currency bloc for two years.

The Constitutional Court in the southern city of Karlsruhe rejected, as expected, a series of lawsuits aimed at blocking German participation in emergency loan packages. Chancellor Angela Merkel hailed that decision as validation of her much-criticized euro zone policy.

But the court also said her government must get approval from parliament's budget committee before granting such aid and appeared to rule out more radical solutions floated by Germany's European partners for solving the crisis, such as joint euro zone bonds.

"This was a very tight decision. But it should not be mistakenly interpreted as a constitutional blank check authorizing further rescue measures," the chief judge Andreas Vosskuhle told plaintiffs, government officials and members of parliament in the courtroom.......read on

Question Everything - It is the least we can do for the 1 Million who died

Egon von Greyerz - Redux

With the Swiss National Bank 'pegging' the Franc to the carcass of the Euro yesterday I thought it was timely to repeat the extremely prescient discussion between Egon von Greyerz, who is part of the Swiss establishment, and James Turk for their thoughts on Switzerland and Gold.

Paul Craig Roberts - 'Gold and Silver are the only Safe Havens'

From: RTAmerica | Sep 6, 2011

Wall Street fell for a third straight day on worries that Europe can't take care of its debt dilemma. Many Europeans are trading in their euros for Swiss francs. Now the Swiss National Bank has put a minimum exchange rate of 1.20 francs to the euro. The reason is the present value of the franc is a danger to the financial system. The SNB said it would implement the minimum rate by buying foreign currency in unlimited quantities. Paul Craig Roberts, former Reagan administration official and columnist, tells us how this could affect the world economy.

So that is where some of the Libyan Gold went

BENGHAZI, Libya, Sept 6 (Reuters) - Loyalists of ousted Libyan leader Muammar Gaddafi crossed into Niger late on Monday in a convoy of vehicles, carrying gold and cash, officials from Libya's interim ruling National Transitional Council (NTC) said on Tuesday.

"Late last night, 10 vehicles carrying gold, euros and dollars crossed from Jufra into Niger with the help of Tuaregs from the Niger tribe," Fathis Baja, head of the NTC committee for political and international affairs, told Reuters.

Tuaregs are nomadic people who live on both sides of the frontier......read on

Market wrap

Obama fails those in The Hood

From: ATLAHWorldwide | Sep 2, 2011

Alasdair Macleod talks to James Turk on Sound Money

By GoldMoneyNews on Sep 1, 2011

Niall Ferguson interviewed

From: WealthTrack | Sep 2, 2011

Financial Thought Leader Niall Ferguson discusses why the centuries long dominance of Western economic and political power is waning and what the United States needs to do prevent it from slipping even more.