MrRodgers
Posts: 10542
Joined: 7/30/2005 Status: offline
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quote:
ORIGINAL: MariaB quote:
ORIGINAL: MrRodgers Actually in that I am not young anymore, I was thinking of Switzerland. The Swiss franc has been the best post WWII currency vs the US dollar of all currencies and enjoys a steady forex volume. (arbitrage) Plus the Swiss may do all they can to support the western banking cartel but do not rely upon the US dollar for foreign exchange reserves. You are correct about the Chinese and their addiction to binding the yuan to the US dollar but the Russians are already fucked, only living off their oil. I think it still takes a 'dollar' to buy a 'pound' of rubles, as they saying goes. Maybe it's 1/2 pound now. The Euro is finally reflecting a long delayed volatility in its reliance also upon an ever increasing debt-driven consumerism and their elite's continued desire for a free lunch, not being able to tax only the people to then hand out so much...to the people resulting in yet more austerity or more debt. Some friends in that vain, years ago, formed an off-shore private investment trust in Swiss francs and lend in francs but only with a big bank guarantee, still saving borrowers at least 1 point. Sometimes more, like with a guarantee from the Canadian Royal Bank. Example: I almost got $22 million (in Swiss francs) to re-finance a bldg in no. Va. but the tenant was Logicon (Northrop-Grumman) which does the software for the B1 and B2 bombers and the govt. wouldn't even allow a foreign mortgage holder, let alone buyer. Bitches. That was going to be a real nice ticket. I mean what the fuck were the Swiss and the Canadians going to do and with such a AAA credit tenant ? Europe and especially the U.K. have erred in terms of believing that a race for austerity in the short term, is the way to produce real growth. They’re wrong, it’s the quickest route to a recession. I’m not saying we shouldn’t attempt to pay back on the deficit, in fact we have no choice in that but if you suffocate a nation to get there, you strangle your economy too. Remember 2010-11 and the credit crunch? A lot of people who had bought into the Swiss franc found themselves not only re-paying 50% more but found themselves with larger loans/mortgages. Don't get me wrong, I think FX trading is a great idea but trading in currency is a high risk game. An alternative currency in precious metal is more of a safe haven, especially for things like pension pots and long term investments. On the 16th December gold hit a fantastic low and that's when I bought our family Xmas presents! They didn't get a gold necklace but they did get gold bonds they can almost certainly watch grow. Oh I agree, forex arbitrage is not for the faint-hearted. But then one borrower told me he did it and because of favorable forex, had a net effective interest rate of ZERO !! Plus, that's when typical development (acquisition) loans were 7% and up. You refer to reserves against catastrophe even though gold and silver have both taken big hits. I refer to short term A & D loans but also at this point, the Swiss franc looks like a great reserve against the dollar should that catastrophe ever hit. NEW YORK (CNNMoney) -- The Swiss have had enough of taking the neutral stance. Sept. 6 2011 during hits on the dollar. To put a stop to the Swiss franc's rapid appreciation, the Swiss central bank announced a ceiling on the currency by setting an exchange rate minimum against the euro. On Tuesday, the Swiss National Bank (SNB) made its boldest move yet by announcing that the exchange rate between the Swiss franc and the euro must not drop below 1.20 euros. And if it does, the Swiss bank is prepared to enforce the minimum by selling francs and buying up euros "in unlimited quantities." "The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development," said the SNB in a statement. Immediately following the announcement, the Swiss franc sank 8.5% to trade right around 1.20 euros. Kathy Lien, director of currency research at Global Forex Trading. "They're hoping this will diminish speculative interest and safe haven attraction to the currency." HERE As of 12/31/2011 the USDCHF was $1.06 about 20-25% above its historical average. $1.24 was the recent high now settled back down to .99. 12/2020 is long now though at @ $1.14 So you see, steady against the dollar.
< Message edited by MrRodgers -- 1/7/2016 1:33:46 PM >
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You can be a murderous tyrant and the world will remember you fondly but fuck one horse and you will be a horse fucker for all eternity. Catherine the Great Under capitalism, man exploits man. Under communism, it's just the opposite. J K Galbraith
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