Loading ...It’s a funny old world when frightened people turn to the Swissie, which the SNB is again mass-producing, rather than to gold, which nobody can mass produce. While the franc yields something to gold’s nothing, the spread is narrowing. And if as Thomas Moser, an alternate member of the SNB’s policy-setting Governing Board, suggested in a Sept. 10 interview with The Wall Street Journal, the SNB finally has recourse to negative rates, the barbarous relic will outyield the franc. Way back in the 1970s, relates Christopher Fildes, a delegation of foreign newspapermen were visiting the old Union Bank of Switzerland in Zurich. In response to a casual remark about the proverbial strength of the franc, a Swiss banker scoffed. “We do not say ‘as good as gold,'” declared this eminence. “Gold is not as good as the Swiss franc.” And now?
http://www.zerohedge.com/news/2015-01-15/blast-recent-past-jim-grant-nails-snb-decision