Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

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

Currencies

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 DollarVigilante.com.

© 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.


© 2005-2019 http://www.MarketOracle.co.uk - 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

6 Critical Money Making Rules