Best of the Week
Most Popular
1.Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - Harry_Dent
2. Is This How World War III Begins, In Almost Complete Silence? - Jeff_Berwick
3.Trump Wins 2nd Presidential Debate, Betfair Betting Markets Odds Bounce - Nadeem_Walayat
4.Why Krugman, Roubini, Rogoff And Buffett Dislike Gold - GoldCore
5.End of SPX Stock Market Correction Nears - Tony_Caldaro
6.Get Ready for the Future - Exponential Machine Intelligence Mega-trend towards Singularity - Nadeem_Walayat
7.US Housing Market Bubble II – It’s Happening Again! - Andy_Sutton
8.FTSE BrExit Stock Market Panic Crash Resolves towards New All Time Highs - Nadeem_Walayat
9.Can Trump Still Win Despite Opinion Polls, Bookmakers and Pundits all Saying Hillary has Won? - Nadeem_Walayat
10.Gold’s, Miners’ Stops Run - Zeal_LLC
Last 7 days
4 Incredible Market Forecasts You Have to See to Believe - 26th Oct 16
Silver Prices in an Exponential Financial System - 26th Oct 16
Rigged Election: Hillary and Trump Caught Partying Like BFF’s With Kissinger at Jesuit Gala - 26th Oct 16
The Current Message of Yield Curves: Inflation or Deflation? - 25th Oct 16
Broken Central Banks: 4 Quick Pix - 25th Oct 16
Government Stimulus is an Oxymoron, Debt to GDP - 25th Oct 16
Where Will Crude Oil Price Head Next? - 25th Oct 16
Diamonds in the Gold and Silver Mining Stocks - 25th Oct 16
Trump’s Gettysburg Address against the New World - 25th Oct 16
This Past Week in Gold - 24th Oct 16
Can Gold Continue To Rise, Since The Usd Is Moving Higher Too? - 24th Oct 16
Why are Americans Avoiding the Stock Markets; Fear or Lack of Money? - 24th Oct 16
The US Is NOT a Low-Tax Jurisdiction - 24th Oct 16
Stocks, Crude Oil and EURUSD Trend Forecasts - 24th Oct 16
Stock Market Another Month to Go? - 24th Oct 16
Large Sell-off in Stock Market Looming - 24th Oct 16
Ungovernability - 24th Oct 16
Stock Market Boredom Before The Storm - 24th Oct 16
Establishment Mainstream Media Elite Buys US Election for Hillary Clinton, Time Running Out for Trump - 23rd Oct 16
Inflation About To Explode Higher - 22nd Oct 16
Still waiting for SPX uptrend to kick off - 22nd Oct 16
Will a Rising US Dollar Crush Gold’s Fledgling Bull? - 22nd Oct 16
Why The Global Economy Will Disintegrate Rapidly Back to Olduvai Gorge - 22nd Oct 16
GLD Bleeds Out; Weekly Gold Update - 22nd Oct 16
Stock Market Investment Success Through the “Investment Rule of 72” - 21st Oct 16
The Final Bottom in Gold - WHEN - 21st Oct 16
Gold Green Lights Upleg - 21st Oct 16
Demand for US Mints Silver Eagles has ‘Returned with a Vengeance’ - 21st Oct 16
Central Bankers Can't Stop The Death Blow Of The Post US Election Recession - 21st Oct 16
The Fortune at the Bottom of the Pyramid: Golden Opportunity for Frontier Asia - 21st Oct 16
Have You Taken These 4 Simple Steps to Improve Your Trading? - 21st Oct 16
The Stock Market is an Accident Waiting to Happen - 20th Oct 16
It's Rally Time for Gold and Silver Equities - 20th Oct 16
Cashless Society – Risks Posed By The War On Cash - 20th Oct 16
China's insane Housing Market Will Tumble and Crash in 2017 - 20th Oct 16
Donald Trump Bounces Going into 3rd and Final US Presidential Election Debate - 20th Oct 16
Attention Please: Phase Two of the Gold and Silver Train Now leaving the Station. All Aboard? - 19th Oct 16
How to Successfully Trade a Stock Market Crash - Black Monday October 19th 1987 - 19th Oct 16
Tesla, Apple and Uber Push Lithium Prices Even Higher - 18th Oct 16
Silver, Debt, and Deficits – From an Election Year Perspective - 18th Oct 16
UK Property Market: Slow Growth Does Not Equate To Decline - 18th Oct 16
Trump Election Victory is in Your Power - 18th Oct 16
Stock Market More to Come! - 18th Oct 16
This Past Week in Gold and Silver - 17th Oct 16
A Falling Stock Market Cannot Be Allowed - Financial Repression Is Now “In-Play”! - 17th Oct 16
Commodities, Forex and Stock Market Trend Forecasts - 17th Oct 16
Stock Market Crash..or No Crash? - 17th Oct 16
A perspective on risk rally – Risks abound but Stock Market is Confident - 17th Oct 16
Bank of England Blames Brexit for Sterling Drop Inflation, Masks QE Money Printing Cause - 17th Oct 16
From Piety to Pride to Pity, America's Racial Divide - 17th Oct 16

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

The Power of the Wave Principle

The Swiss Franc Ties Itself To The Collapsing Euro in Double Suicide

Currencies / Fiat Currency Sep 07, 2011 - 06:21 AM GMT

By: Jeff_Berwick


These are grand times to be dollar vigilantes.

The whole premise of being a dollar vigilante is the acknowledgement that the entire global financial system is an artificial and oppressive system that is nearing the end of its road (and purchasing hard assets and internationalizing our assets to protect ourselves).

What then is better than having a multi-billion dollar global banking behemoth, like UBS, say these words:

"The Euro should not exist... Under the current structure and with the current membership, the Euro does not work. Either the current structure will have to change, or the current membership will have to change...Why consider break-up at all? Break-up occurs because the Euro does not work. Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe."

We couldn't have said it better ourselves! The only point UBS is missing is that not only should the euro not exist, but it soon will not exist... not in any recognizable form anyway. But UBS points out that if the euro were to fail there could be social unrest and civil wars. Therefore, they say, it must continue to exist.

It's like a man falling from a skyscraper saying that when he hits the ground its really going to hurt and he is going to die... so, therefore, he must not hit the ground. Good luck with that one.

Meanwhile, in Switzerland, where UBS is based, the Swiss Government finally couldn't take it anymore and they effectively devalued the Swiss Franc. The Swiss National Bank warned that it would no longer allow one Swiss franc to be worth more than €0.83 - equivalent to SFr1.20 to the euro.

In effect, they are pegging the value of the Swiss franc to the euro. Yes, the euro which as we just discussed, is on the verge of complete collapse. Talk about hitching your wagon...

Isn't living in this fiat currency world fun? We live in a time where democracies are the scourge of the planet and, at the same time, currencies are tied to nothing and completely at the mercy of politicians who constantly devalue their currency in a misguided effort to get an export advantage and to take advantage of the hidden tax of inflation to keep their social programs and wars going until they can get out of office.

Is it any wonder gold is bumping up near $2,000/oz?

After all, where else are people going to go to hide from the coming fiat currency collapse? The euro is on it's death bed. The Swiss National Bank just announced that the Swiss franc will go down with the euro if need be. The US Government is already beyond bankrupt and the Federal Reserve has been Quantitatively Easing the dollar into worthlessness and they are both just hoping the euro goes first so they can blame the whole train wreck on them.

All of these central banks and governments have the same two options. Allow their currencies or governments to collapse. Or, inflate their currencies a little while longer and hope to get out of office soon before the whole thing comes crashing down in a smoking pile.

Politicians always choose the easiest way out. The easiest way out is inflation...

Anyone smell QE3?

If so, at this stage in the game, more inflation will almost certainly lead to hyperinflation and the complete collapse of the fiat currencies and the great majority of the economies of the western world.

And, UBS is correct. These type of things usually lead to massive social unrest and civil wars.

The Dollar Vigilante doesn't have one of those fancy Homeland Security color coded warning systems, but if we did, it'd be set to high alert. Be on the lookout for any suspicious activity by politicians and central bankers and prepare now via ownership of hard assets (gold, silver, real estate - preferably outside of the western world and agriculture/farmland) and internationalize your financial and personal life so you have options as the collapse continues.

This evening we are releasing the August issue of TDV where we talk much more in depth about the coming collapse and strategies and info for how best to survive the coming storm.  Subscribe today to become a part of our community of dollar crash survivors.

The Dollar Vigilante is a free-market financial newsletter focused on covering all aspects of the ongoing financial collapse. The newsletter has news, information and analysis on investments for safety and for profit during the collapse including investments in gold, silver, energy and agriculture commodities and publicly traded stocks. As well, the newsletter covers other aspects including expatriation, both financially and physically and news and info on health, safety and other ways to survive the coming collapse of the US Dollar safely and comfortably. The Dollar Vigilante offers a free newsletter at

© 2011 Copyright Jeff Berwick - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2016 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife