“The SNB has committed itself to creating unlimited amounts of francs and selling them versus the euro to defend the currency’s level.”
This decision is amazing to say the least. First of all, they are broadcasting their strategy for all to see. What if the Euro resumes its depreciation shortly and things implode in Euro land.....is the SNB truly prepared to create unlimited amounts of francs and sell them versus the euro no matter what happens to the Euro in the months and years ahead? Sounds like something an unethical interventionist Central Bank would do......
Kinda reminds me of Gordon Brown announcing ahead of time that England was going to sell its gold...
This is a great example of the mentality of Central Bankers....they apparently believe they can do whatever they want, up to and including creating unlimited amounts of their currency to accomplish their goals.
If Central Banks in general have the option of creating unlimited amounts of their currency, why on earth would anybody buy any government bonds, especially at this point in history with massive global government debt everywhere?
