In a shocking move, the Swiss National Bank decoupled the Franc from the Euro today (it was previously pinned at 1.20 EUR) - causing chaos in the currency markets. The potential effects appear to be broad - impacting not only the Euro, but the Dollar, Gold, Oil, Russia, Greece, Brazil and many others.
So what does this mean for the PP?
Thoughts on the Swiss Franc Decoupling?
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mortalpawn
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MachineGhost
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Re: Thoughts on the Swiss Franc Decoupling?
I'm not sure why they would want to decouple since Switzerland is an export-oriented economy. It seems stupid.
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Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: Thoughts on the Swiss Franc Decoupling?
Not sure what it means for the PP but my guess is that the Swiss see the demise of the Euro coming sooner rather than later, and want to be well clear of all the eventual mayhem that could create. If the Euro falls apart (as CraigR has predicted many times), my guess is that gold prices will shoot up. Of course European interest rates and stock market performance indirectly affect the (American) PP as well, which is why we don't bet too heavily on one specific outcome.
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Libertarian666
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Re: Thoughts on the Swiss Franc Decoupling?
Because their money-printing was devaluing the savings of their citizens. Switzerland has one of the highest levels of savings in the world, so they are not much amused when their central bank is stealing those savings.MachineGhost wrote: I'm not sure why they would want to decouple since Switzerland is an export-oriented economy. It seems stupid.
Re: Thoughts on the Swiss Franc Decoupling?
Apparently it means we get a gold run-up for the day as markets react. Fun!mortalpawn wrote: So what does this mean for the PP?
Re: Thoughts on the Swiss Franc Decoupling?
Seconding Tyler. It means a nice return for the day. Bonds appear to be up for the day as well, related to the Franc decoupling or not.