by Georgi Stankov, January 15, 2015
All the speculative bubbles in finance and equity markets since the still ongoing Depression that started in 2008 have been driven entirely by the Central Banks (CB) by printing paper money out of thin air and have no economic foundation whatsoever. It was believed that the CB such as the Fed, ECB, etc. would not fail to deliver.
This belief has been crashed today as the Swiss CB de facto defaulted by eliminating the Swiss Franc peg to the Euro. The repercussions of this fiasco of the CB will reverberate in the coming days and will throw into the abyss many more speculative fools, funds and even whole countries. Two Greek banks have already declared illiquidity in the wake of the political crisis in Greece and the coming elections that may see this country exit the Eurozone and default on its national debt amounting to hundreds of billions €.
The article below explains why the today’s tectonic shift in the Swiss Frank jumping more than 30% in value compared to the Euro will soon trigger similar defaults of other CB and Western economies. While this scenario was projected onto Russia by the Western presstitutes media end of 2014, now the chickens come home to roost in the Western financial capitals.
What we already observe in the first two weeks of the New Year 2015, the most auspicious year in the history of mankind when Ascension will take place, is a massive stipulation of events and trends that prepare the collapse of the Orion matrix. It will most probably begin with a financial crash and shutdown of all Western banks as predicted by myself.
To this end the announcement of Russia to stop its gas suppleis to Europe via Ukraine is the first deadly blow. Many more will follow in the coming days. The exit of Greece from the Eurozone and its default on the national debt is the next most likely crucial event, which may very well be preceded by the default of the Kiev Nazi regime on its debt in the absence of any financial support from the EU and the USA, now that Russia has demanded the repayment of its 3 billion eurobond loan from Ukraine.
On top of this the EU is currently ravaged by false flag attacks, most probably planned and instigated by the CIA-Gladio terror units and the once much acclaimed social peace on the Old Continent belongs to the past. The “clash of civilisations” is no longer an academic concept of obscure professors, but is taking its bloody toll in the capitals of Western Europe that have now turned into battlefields between Christianity and Islam. This deadly conflagration has even reached the Central Banks, once the stable and proud citadels of neo-liberal predator capitalism.
The following article explains the consequences and the ramifications of the today’s devastating decision of the Swiss CB to eliminate the peg of the Franc to the Euro. Watch what will happen next.
End of CB Power – SNB Folds
by Bruce Krasting, January 15, 2015
I wrote about the Swiss National Bank being forced to abandon its currency peg to the Euro on 12/3/14, 12/8/14 and 1/11/15.That said, I’m blown away that this has happened today.
Thomas Jordan, the head of the SNB has repeatedly said that the Franc peg would last forever, and that he would be willing to intervene in “Unlimited Amounts” in support of the peg. Jordan has folded on his promise like a cheap suit in the rain. When push came to shove, Jordan failed to deliver.
The Swiss economy will rapidly fall into recession as a result of the SNB move. The Swiss stock market has been blasted, the currency is now nearly 20% higher than it was a day before. Someone will have to fall on the sword, the arrows are pointing at Jordan.
The dust has not settled on this development as of this morning. I will stick my neck out and say that the failure to hold the minimum rate will result in a one time loss for the SNB of close to $100B. That’s a huge amount of money. It comes to 20% of the Swiss GDP! If this type of loss were incurred by the US Fed it would result in a loss in excess of $2 Trillion!
In the coming days and weeks there will be more fallout from the SNB disaster. There will be reports of big losses and gains from today’s events. But that is a side show to the real story. We have just witnesses the collapse of a promise by a major central bank.
The Fed, Bank of Japan, ECB, SNB and other Central Banks have repeatedly made the same promises over the past half decade:
Don’t worry! We are here. We will do anything it takes to achieve the stability we desire. We are stronger than the markets. We can overwhelm all forces. We will never let go – just trust us!
I never believed in these promises, but the vast majority of those who are active in financial markets did. The entire world has signed onto the notion that Central Banks are all powerful. We now have evidence that they are not.
Anyone who continues to believes in the All Powerful CB after today is a fool. Those who believed in Jordan’s promises now have red ink on their hands – lots of it!
The next central bank that will come into the market’s cross hairs is the ECB. Mario Draghi has made promises that he would “Do anything – in any amount”. Like I said, you would be a fool to continue to believe in that promise as of this morning.
We’ve just taken a huge leap into chaos. The linchpin of the capital markets has been the trust in the CBs. The market’s anchors have now been tossed overboard.