The Swiss are making a killing!
The swiss (Swiss national Bank) are making a huge
profit. Good for them.
From The Great Gartman letter. We have written
many times about the fact... and it is a fact... that the Swiss National Bank
has effectively become both the nation’s central bank and one of the largest,
if not indeed the very largest, hedge funds in the world. The process began
several years ago when the SNB swore that it would do what it could and using
what methods were available to it to weaken the Swiss franc relative to the EUR
and to the US dollar. It has succeeded, until recently, creating Swiss francs
out of the thinnest of air, and selling those Francs vs. the EUR and the
dollar, and then taking those EURs and dollars to buy European and US equities
and debt securities. The SNB’s balance sheet is a CHf 813 billion (and given
that the CHf and the US dollar are effectively at parity one with the other
that CHf 813 billion is the same as $813 billion) and this is very nearly 125%
of the Swiss GDP.
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