SNB & CHF

For us the Net National Savings Rate is the best alternative indicator to GDP growth. The Net National Savings Rate (NNSR) is rather positively correlated with the change in wealth, with the establishment of future productive capacity, the price of government bonds and currency valuations. The relationship of GDP growth to those four criteria, however, is often a negative correlation. We critized GDP growth that has...

In the CFTC reporting week ending November 28, speculators added 12.1k contracts to their gross short position, lifting it to 72.4k contracts. Speculators added a little less than one thousand contracts to the gross longs, which then stood at 72.1k contracts. Since peaking in early October near 102k contracts, 30k gross long contracts have been liquidated.  Over the same period, almost 40k contracts have been added...

Submitted by Simon Black via SovereignMan.com, It’s happening faster than we could have ever imagined. Every time we turn around, it seems, there’s another major assault in the War on Cash. India is the most notable recent example– the embarrassing debacle a few weeks ago in which the government, overnight, “demonetized” its two largest denominations of cash, leaving an entire nation in chaos. But there have been...

After seven years on top, Swisscom has been beaten by Sunrise. The German telecommunications expert and magazine publisher, connect.de and its partner P3, travelled roughly 7,000 km by car around Switzerland testing Swiss mobile networks. Tests were also made while walking and on trains. The results were published on Tuesday. © Hai Huy Ton That | Dreamstime.com - Click to enlarge Out of a possible 1,000 points,...

A Market Gripped by Fear The Indian Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes would no longer be legal tender. Linked are Part-I, Part-II and Part-III updates on the rapidly encroaching police state. The economic and social mess that Modi has created is unprecedented. It will go down in history as an epitome of naivety and arrogance due to Modi’s self-centered desire to increase...

Can the current iteration of global capitalism be reformed, or is it poised to be replaced by some other mode of production? Judging by the mainstream media, the most pressing problems facing capitalism are 1) income inequality, the basis of Thomas Piketty’s bestseller Capital in the Twenty First Century, and 2) the failure of laissez-faire markets to regulate their excesses, a common critique encapsulated by Paul...

Bad Monday Some Monday mornings are better than others.  Others are worse than some.  For one Amazon employee, this past Monday morning was particularly bad. No doubt, the poor fellow would have been better off he’d called in sick to work.  Such a simple decision would have saved him from extreme agony.  But, unfortunately, he showed up at Amazon’s Seattle headquarters and put on a public and painful display of...

Summary: USD had a large rally in November. We had been looking for a short and shallow pullback. Here are thoughts about what would signal an outright correction.   The Federal Reserve’s real broad trade weighted dollar index rose 2.3% in November.  This is the largest monthly advance since September 2011.   This is the measure that officials and economists use to try to assess how the currency movement impact...

Swiss Franc EUR/CHF - Euro Swiss Franc, December 02(see more posts on EUR/CHF, ). - Click to enlarge Federal Reserve The capital markets are finishing the week amid speculation that the driving forces of the past three weeks are ebbing.  Global equities and the dollar may be snapping three-week advances.  The issue is whether it is a consolidation or trend change.   The former is a more prudent assumption until...

Swiss Franc EUR/CHF - Euro Swiss Franc, December 02(see more posts on EUR/CHF, ). - Click to enlarge Federal Reserve The capital markets are finishing the week amid speculation that the driving forces of the past three weeks are ebbing.  Global equities and the dollar may be snapping three-week advances.  The issue is whether it is a consolidation or trend change.   The former is a more prudent assumption until...