Watta Week!

Finally….the currency wars have their Pearl Harbor. You pick your own conspiracy theory of WHY the Swiss made their shocking move in the Western Central Bank currency ponzi that has given the “this will go on forever” crowd their Fed put, for mindlessly buying general equities. Well that game received their first warning bell. Will this spell the end to the Ponzi of fiat money creation (known as “monetarism”)? NO! Will Buttfox have many more laughs at the expense of real capitalism/real money and the rule of law?? YES! The Ponzi did not end with the SNB it only signaled the BEGINNING of the end. 

The next issues will be in establishing the which parts of the Zombie economies of the World begin the slow domino fall into bankruptcy. The Swiss had really no choice. Like many of these zombie Western countries, the Swiss had reached a point of no return mathematically in their balance sheet after embarking on a failed attempt to support the Euro. Knowing that Draghi was most likely going to embark on a QE program the SNB had really no choice but to make the break from the fiat Ponzi and go back (or at least try to salvage) to their roots of sound banking. Maybe they had some help making that decision from some very wealthy families and “interests” that need a true private banking system as this monetary game reaches this dangerous extreme in the world.

So what’s next? Wait and see what the ECB does and how PMs react. If I am right they will initially be beaten down with the decision, maybe even before, but that is temporary on this intermediate run. I think they’ll draw the line for the real tanking this year at the 1450 area and that may not be for another month or more.

Watch the Germans this year. They’re the key. A northern Union of the European Union is coming. It just a matter of how and when. No one wants the dollar and that game will also take a huge body blow very soon. Especially if Draghi disappoints.  gl