|Posted by Ernest John Fleckenstein on February 20, 2015 at 6:40 PM|
In September 2011, Switzerland pegged its currency to the euro to set a ceiling to the Swiss franc’s, subsidizing Export industry and punishing import. But, on January 15, the Swiss National Bank (SNB) suddenly and surprisingly abandoned the peg with all its uncomfortable consequences.
The risks created by the SNB’s decision – as transmitted through the financial system – have a fat tail. The negative effects for the Swiss economy – through the decreased competiveness of its export industries (including tourism and medicine) – may already be showing that abandoning the euro peg was not a good idea.
The following Video “Global Shockwaves to come from Swiss Currency Bombshell“ from Mike Meloney provides the details and background information:
Categories: All around Money