U.S. Gold Imports from Switzerland Monthly It seems as if the tide has changed as the U.S. imported a record amount of gold from Switzerland in July. Normally, the flow of gold from the United States has been heading toward Switzerland. For example, when the U.S. exported a record 691 metric tons (mt) of gold in 2013, Switzerland received 284 mt, which accounted for 41% of the total. Compare that to the paltry 3...
Read More »Emerging Markets: What has Changed
Summary The Hungarian central bank capped the amount commercial banks can keep at its 3-month deposit facility. S&P upgraded Hungary from BB+ to BBB- with stable outlook. Bank of Israel will move to 8 meetings per year starting in 2017, down from 12 currently. S&P raise the outlook on Russia’s BB+ rating from negative to stable. The South African Reserve Bank signaled a potential end of the tightening...
Read More »Un-Becoming American – One Man’s Painful Journey To Renouncing Citizenship
Submitted by ‘Kevnice’ via ForeignByNature.com, In April 2012, I returned to Switzerland – my country of birth – to commence a new phase of my adult life. Naturally, one of the first steps to undertake when establishing oneself in a new country is to open a bank account. I went down to the local Raiffeisen bank branch in the village of Aesch, Luzern, where my relatives and ancestors had lived and worked as farmers for...
Read More »Weekend Reading: Another Fed Stick Save, An Even Bigger Bubble
As I noted on Thursday, the Fed non-announcement gave the bulls a reason to charge back into the markets as “accommodative monetary policy” is once again extended through the end of the year. Of course, it is not surprising the Fed once again failed to take action as their expectations for economic growth were once again lowered. Simply, with an economy failing to gain traction there is little ability for the Fed to...
Read More »What If We’re in a Depression But Don’t Know It?
If it isn’t a Depression, it’s a very close relative of a Depression. Just for the sake of argument, let’s ask: what if we’re in a Depression but don’t know it? How could we possibly be in a Depression and not know it, you ask? Well, there are several ways we could be in a Depression and not know it: 1. The official statistics for “growth” (GDP), inflation, unemployment, and household income/ wealth have been...
Read More »World markets rally as cheap money policy continues
SMI The Swiss Market Index is set to finish the week notably higher, although under-performing global stocks amid optimism that central banks will continue to support equities by keeping interest rates at historic lows and providing markets with additional liquidity. Click to enlarge. Economic Data Global equities experienced a “relief rally” after crucial central bank policy meetings in Japan and the US indicated...
Read More »Why the Coming Wave of Defaults Will Be Devastating
Without the stimulus of ever-rising credit, the global economy craters in a self-reinforcing cycle of defaults, deleveraging and collapsing debt-based consumption. In an economy based on borrowing, i.e. credit a.k.a. debt, loan defaults and deleveraging (reducing leverage and debt loads) matter. Consider this chart of total credit in the U.S. Note that the relatively tiny decline in total credit in 2008 caused by...
Read More »Julius Baer CEO says Asia revenue may excede Europe’s in 5 years
Julius Baer Group Ltd. said Asia may overtake Europe as its biggest revenue-generating region, as the Swiss wealth manager steps up hiring in Hong Kong and Singapore. “In the next five years, Asia could be the biggest region for us if we grow at double-digit” rates, Chief Executive Officer Boris Collardi said Wednesday in an interview in Singapore. More than half of about 200 new bankers that Julius Baer plans to hire...
Read More »Swiss still the world’s wealthiest, says report
Largely due to a flood of central bank liquidity, global private financial assets have grown by 61% over the seven years since the financial crisis, almost twice the growth rate of economic output, says a report from the German Insurance giant Allianz. This has boosted the wealth of those who own shares. Those relying on interest, on the other hand have seen their wealth stagnate. The report goes on to say “after seven...
Read More »FX Daily, September 21: BOJ Can’t Weaken Yen, Fed keeps Rates Unchanged, CHF Stronger
Swiss Franc The EUR/CHF accelerated its decline since yesterday’s strong Swiss trade balance data. The second reason was certainly the Fed decided to keep rates unchanged. We know that the Swiss Franc has similar “counter-dollar” status as gold. Click to enlarge. Japan Much of what the Bank of Japan announced today had been largely leaked. While there was a sizeable response in the asset markets, the dollar’s...
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