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

By: Jeff Berwick | Wed, Sep 7, 2011
Print Email

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.

Burning Euro

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.

 


 

Jeff Berwick

Author: Jeff Berwick

Jeff Berwick
Chief Editor
The Dollar Vigilante

Jeff Berwick

Anarcho-Capitalist. Libertarian. Freedom fighter against mankind's two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world's freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.

Jeff's background in the financial markets dates back to his founding of Canada's largest financial website, Stockhouse.com, in 1994. In the late '90s the company expanded worldwide into 8 different countries and had 250 employees and a market capitalization of $240 million USD at the peak of the "tech bubble". To this day more than a million investors use Stockhouse.com for investment information every month.

Jeff was the CEO from 1994 until 2002 when he sold the company and still continued on as a director afterwards until 2007. Afterwards, Berwick went forth to live on and travel the world by sailboat but after one year of sailing his boat sank in a storm off the coast of El Salvador. After being saved clinging to his surfboard with nothing but a pair of surfing shorts left of all his material possessions he decided to "live nowhere" and travel the world as spontaneously as possible with one overarching goal: See and understand the world with his own eyes, not through the lens of the media.

He went on to visit nearly 100 countries over four years and did and saw things that no education could ever teach. He met and spoke with a plethora of amazing people, from self-made billionaires to some of the brightest minds in finance - as well as entrepreneurs from a broad range of backgrounds and locations from tech companies in southern China to resource developers in Mongolia, Thailand, Russia and Chile. He also read everything he could find on how the world really works... politically and financially. A pursuit he continues to this day.

He expatriated, long ago from his country of birth, Canada, and considers himself a citizen of the world. He has lived in numerous locales since including Los Angeles, Hong Kong, Bangkok and currently lives in Acapulco, Mexico and is building a home in Cafayate, Argentina. In essence, everything he writes about here for TDV he has done or is doing.

As well, during his travels, both real and virtual (through the internet), he met some amazing people who have a similar shared vision of what is currently going on in the world and enticed them to come aboard TDV and provide their own brand of analysis.

Copyright © 2010-2014 Jeff Berwick

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/