When the Swiss Franc started appreciating against the Euro (or was it the Euro depreciating against the CHF?) the Swiss National Bank vowed to fight tooth and nail to keep the Swiss Franc at a 1.20 parity “at all cost”.
Time to wonder how such a “fight” is fought, whether it can be successful and what are the consequences.
The currency “stabilisation” choices a central bank has
A central bank is the master of its own currency, i.e. the currency it is meant to issue.
In today’s world of unbacked (“fiat”) currencies even the Swiss Central Bank has no real restriction as to how many units of its currency it can create. It can virtually create infinitesimal amounts of it. Read more…
The Euro was probably the most hyped-in currency the world may have ever known.
That fact alone should have been reason for suspicion.
In this article we contrast some of the eulogies heaped on the Euro back in around 2001/2002 when it was introduced as a tangible currency with these past weeks’ near-obituaries.
… and hence in areas not yet evacuated though they should obviously have been. Read more…
Do you own a garden, a patch of land, a field where you plant, esp. for human food or animal feed? Then you should prepare against letting the radioactive fall-out from Japan into your soil, where it will remain and contaminate your plants and e.g. livestock for probably decades.