From Keynesian Shangri-La To Outright War
Over the last few weeks drum beats could be heard signalling the coming of troops from abroad to lay waste to any foe ahead of them. However, unlike what we first conjure up as troops from an opposing force made up of men and weapons. This battlefield is being waged in the ether of the currency markets.
Although barely covered by the main stream press Central Bankers have now shown they’re now far from working in unison or displaying any semblance of a cohesive group. Rather, they’ve now turned their attention and policies inward in a “shoot first, screw asking any questions later” mindset.
It wasn’t hard to extrapolate recent events happening if one only paid attention to previous clues. The swiftness along with the repercussions going forward are the only thing that were hard to calculate. However, we now see the brutality and to what extent even perceived smaller entities (such as the Swiss) are willing to take to save their own sovereignty just by counting the first wave of casualties through the metaphor of empty money bags.
Once the Swiss National Bank (SNB) decisively went rouge and un-pegged the floor between the Franc and Euro everything changed. We’ll never know who knew what, if, or when. (i.e. All the other Central banks.) Yet one thing is clear: The SNB didn’t care about who or what entity was pegged to their currency in a carry trade, nor the effects it might have on its economy.
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