Switzerland - Ruh Roh!.......................from Rico

For anyone who still believes that Central Bankers 'know' what they are doing, and can be trusted to do the 'right' thing, consider Switzerland.

- If Switzerland isn't 'safe' then who is?

 

The SNB has expanded the group of sight deposit accounts subject to negative interest to include essentially everybody.

- Only the central Federal Administration, the funds for old age, disability, and unemployment will be exempt from NIRP.

- The accounts for the cantons of Zurich and Geneva, and the City of Zurich will be unwound. [For Keynesians read: closed.]

 

The venerable Swissie (CHF) immediately 'tanks' as a currency following the announcement.

 

The SNB is sending a clear message, albeit with a Swiss accent. I'd expect every Central Bank to be singing the same tune eventually.

- Spend, do NOT save.