Switzerland and Spain - related?

As the Dow continues its recent breakdown today, the headlines read that Switzerland Takes Surprise Action To Weaken the Franc.  At the same time, con men from the Euro-scam exclaim that "Pressure in Italy, Spain 'unwarranted'".  Unfortunately, these things are absolutely tied at the hip by the scam of fiat currency and fractional reserve banking.

Let me start with the Swiss Franc.  Over the past many months I have commented several times as pundits have been talking down the dollar and suggesting that the Swiss Franc, which is historically a safe harbor during inflationary times, will again be a safe harbor this time.  My view is that the Swiss Franc is just another fiat currency that, while less abused historically than other fiat currencies, is still a scam.  Unfortunately, its worse than that because no fiat currency is an island in a global economy that revolves around fiat currencies.  Even if the Swiss government might not really want to debase their currency, global circumstances such as those in Spain are forcing its hand.

How does the pain in Spain force the Swiss to water down their money supply you might ask?  Well, everyone knows that Spain and the rest of the PIIGS are bankrupt despite talk to the contrary from con men with vested interests in keeping the Ponzi plate spinning (see above link to the PIIGS squealing about "unfair treatment", blah blah blah).  The truth is that the PIIGS are getting far better treatment than they actually deserve simply because nobody knows what to do about it. But while the sheeple are acting as deer-in-headlights trying to get through Kubler-Ross, the smart money is looking for an exit from the Euro. Unfortunately there is not enough stuff with a price that is pereceived to be low enough to safely run into. Gold is well over $1650/oz., copper and other commodities are at the high end of their ranges (in a slowing economy no less) but still there are wads of credit based money looking to exodus the Euroscam and the dollar scam.  And so a fair share of it has been running for cover into the Swiss Franc.

Unfortunately, a strong Franc means Swiss exports become uncompetitive in the global market from a price perspective and so the Swiss government feels the need to "do something" to help its exporters.   By debasing its currency it is actually screwing its conservative savers whose buying power actually increases with a stronger currency but those suckers don't have political clout nor do they provide kickbacks and campaign contributions like the exporters do so it's pretty clear who is going to get preferential treatment here.

In addition to all that, those who ran into the Franc because they foolishly thought it was safe are now getting debased by yet another government.  Meet the new boss, same as the old boss.  In a past post, I likened it to a bait ball getting picked apart by a school of tuna.  I still like that analogy.  So why is it different this time?  Why is the historical safe harbor of Swiss Francs proving to be no safe harbor at all?  My view about this is that the entire global fiat currency system is rolling over because the leader of that system - the USA - is rolling over.  In the past, fiat currencies of smaller players would rise and fall but the US greenback was a pillar of global strength.  People around the world could always count on Americans to do the right thing after having exhausted all other possibilities.  But this time it appears as if the US has completely lost its way and as a result global confidence in fiat currency is waning rapidly.

In short, no con last forever and fiat currency along with fractional reserve banking is absolutely a con.  It doesn't matter who owns the fiat currency.  All of them are structurally scams and all of them will suffer the same fate to varying degrees.  In the end analysis the best safe place to hide from a structurally collapsing fake money system is in the only real money that ever existed in the world which is physical gold in your physical possession.  Everything else is a Wimpy Promise that will, at the end of the day, let you down in some form or fashion.