Tag Archives: Switzerland

The Fed kept the interest rate unchanged at 1,75 – 2% while Switzerland have negative interest rate at -0,75

Federal Reserve Board Chairman Jerome Powell announced on Wednesday that it kept the benchmark interest rate unchanged. The statement comes after a two-day meeting of the FOMC, which decides on monetary policy.

Powell said the job market would remain strong and inflation would stay around the 2 percent target for “several years.” This is great for the U.S because it gives the Fed some tools to use if the trouble are coming back. But what about the rest of the world? Are they healthy?

The picture is different in Switzerland. The Swiss National Bank kept its benchmark three-month Libor at -0,75 percent on June 21st, 2018. Interest rate in Switzerland reached an all time low of -0,75 percent in January of 2015, and it`s still at the same low-level. But they are not alone.

Denmark followed Switzerland in 2015 and dropped the interest rate to -0,75 only a month after them. The Danish central bank follows the path set by the ECB and the key rate will be raised or lowered when the ECB changes the refinance rate.

The Danish central bank`s main policy aim to hold the euro`s exchange rate within 2,25 percent either above or below 7,46038 kroner in an effort to keep inflation low and provide stability for exporter. Now the Danish rate is -0,65.

Sweden joined the negative interest club, and the central bank of Sweden held its benchmark interest rate at -0,5 percent on July 3rd, as widely expected, saying monetary policy needs to continue to be expansionary for inflation to remain close to target despite strong economic activity.

Japan is the last country in the world to have negative interest rate. They reached an all time low of -0,1 percent in July this year. The BOJ vowed to keep rate extremely low for extended period of time and opted for flexible bond buying at its July 2018 meeting.

In addition, Japan`s policymakers left its key short-term interest rate unchanged at -0,1 percent and kept its 10-year government bond yield target around 0 percent.

In other words; you are lending your money to governments and you are paying them interest for that, which mean it`s cheaper to put your money under your mattress. But that strategy can be very risky.

The goal is to make people spend money rather than pay a fee to keep it safe. This is intended to incentivize banks to lend money more freely and businesses and individuals to invest. This is how you make growth.

During deflationary periods, people and businesses hoard money instead of spending and investing. The result is a collapse in aggregate demand, which leads to prices falling even further. This again will lead to a slowdown in production and output which means higher unemployment.

Negative interest rates can be considered a last-ditch effort to boost economic growth, which means when all else has proved ineffective and may have failed. 21 countries like Spain, Italy, Greece, France, Finland and Malta to name a few, are holding its interest rate at 0,00. The Euro zone is joining the club.

In 2014, the ECB instituted a negative interest rate that only applied to bank deposits intended to prevent the Euro zone from falling into a deflationary spiral.

The ECB held its benchmark refinancing rate at 0 percent on July 26th and reiterated that the monthly pace of the net asset purchase will be reduced to €15 billion from September to December 2018, and will then end.

The ECB expect the interest rate to remain at their present levels at least through the summer of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to 2 percent over the medium term.

The risk surrounding the euro area growth outlook can still be assessed as broadly balanced. Uncertainties related to global factors, notably the threat of protectionism, remain prominent.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Elite CEO`s scrambled to take selfie with Trump in Davos and there was overwhelming universial support for the “rockstar”

President Donald Trump were treated like a rock star when he came to Davos, Switzerland last friday. It was like Michael Jackson, Elvis Presley and Beatles combined. It was chaos. Everybody wanted to be where Trump was. Everybody wanted to be around him.

Elite CEOs scrambled to take selfies with him. Theyre elbowing each other out-of-the-way, and there was overwhelming support for Mr Trump. Not only that; The Dow Jones Industrial Average went straight up, over 200 points on the news of Mr Trump`s reception in Davos. Wow!

President Trump was surrounded by a bunch of globalists. A bunch of one-world government globalists types. CEOs and other leaders around the world. What we saw in Davos was a universal support. Except one thing: Mainstream Media. They didnt like it at all.

Right after Mr Trumps inauguration, Mainstream Media were laughing at President Trumps tax cut plan. Some of them said; Trump belive he can cut the taxes. How in the world can he afford to do that? Ha ha ha.

Now, a year later, Trumps $1,5 trillion tax cut and the «resulting boom» has been applauded in Davos. The Prime Minister in Netherland said in an interview that he support some of Trumps politics and that the world need more leaders like him.

I do agree. I support some of his politics, but disagree with other things. So was it with Obama, Bush and Clinton. I belive people around the world should support the U.S president no matter who it is. It`s about respect. He is the boss. A powerful world leader.

President Donald Trump is a leader for the history books, and he is a great president that kids in the future shall study and learn about. People in America should be proud of him. He is not only a representative for the U.S, but also a great mentor on the world stage.

President Donald Trump is one of the world`s greatest leaders, and those who would say otherwise are in a dark place.

Donald Trump is in arguably one of the most interesting and popular personalities in the world right now. This is an incredible and most important marker in earths history. As weve seen the ceremonies of transition of power from president to the next, this one will be remembered for generations to come.

This is a power shift that is not inclusive to America but a power shift that affected the whole world. The inauguration of President Trump signaled the end to the power that has been in control of the human race for thousands of years.

What we see now is a total shift of the control of the earth.

Some people claim that the Luciferian rain is fading out and it`s the end of the world as they know it. Lucifer has lost power and control of the earth in all of his mechanisms of deception and manipulation will be exposed completely.

Donald Trump in his inauguration speech said; «Together we will determine the course of America and the world for many, many years to come (The righteous are now in control of America and the world).

Your voice, your hopes and your dreams will define our American destiny. (The righteous have taken control of the future).

And your courage and goodness and love will forever guide us along the way. We stand at the birth of a new millennium ready to unlock the mysteries of space (The truth about space will be exposed) to free the earth from the miseries of disease (The pharmaceutical industry to be exposed) and to harness the energies industries and technologies of tomorrow (free energy).

Today`s ceremony however has very special meaning. Because today, we are not merely transferring power from one administration to another, or from one party to another, but we are transferring power from Washington DC and giving it back to you, the people

January 20th 2017 will be remembered as the day the people became the rulers of this nation again (On January 20th 2017, the course was broken).

And most importantly, Trump said, We will be protected by God (The Luciferian is crying).

Its being said that this is a transition of power from the Luciferian rulers of the earth to the righteous people of the earth. President Trump with the help of Americas allies including Russia will put an end to this Luciferian World Order agenda.

President Trump went to Davos to represent the interest of the American people to affirm America`s friendship and partnership in building a better world like all nations representing at this great forum. America hopes for a future in which everyone can prosper and every child can grow up free from violence, poverty and fear.

He also said in the speech that the world`s largest company Apple announced it plans to bring $245 billion in overseas profits home to America. Their total investment into the United States economy will be more than $350 billion over the next five years.

Now is the time to bring your business, your jobs and your investments to the United States. This is especially true because we have undertaken the most extensive regulatory reduction ever conceived . Regulation is stealth taxation.

The U.S, like many other countries, unelected bureaucrats, (and we have them all over the place), and they`ve imposed crushing an anti business and anti worker regulations on our citizens with no vote, no legislative debate and no real accountability. In America, those days are over.

I pledged to eliminate two unnecessary regulations for every one new regulation. We have succeeded beyond our highest expectations. Instead of two for one, we have cut 22 burdensome regulations for every one new rule. We are freeing our businesses and workers so they can thrive and flourish as never before.

We are creating an environment that attracts capital, invites investment and rewards production. America is the place to do business. So, come to America where you can innovate, create and build. I belive in America.

As President of the United States, I will always put «America first,» just like the leaders of other countries should put their country first. But America first does not mean America alone. When the United States grow, so does the world.

American prosperity has created countless jobs all around the globe and the drive for excellence, creativity and innovation in the U.S has led to important discoveries that help people everywhere. Live more prosperous and far healthier lives as the United States pursues domestic reforms to unleash jobs and growth. We are also working to reform the international trading system so that it promotes broadly shared prosperity and rewards to those who play by the rules.

We cannot have free and open trade if some countries exploit the system at the expense of others. We support free trade but it need to be fair, and it needs to be recipical. Because in the end, unfair trade undermines us all. The United States will no longer turn a blind eye to unfair economic practices, including massive intellectual property theft, industrial subsidies and pervasive state-led economic planning.

These and other predatory behaviors are distorting the global markets and harming businesses and workers. Not just in the United States but around the globe. Just like we expect the leaders of other countries to protect their interests. As President of the United States I will always protect the interest of our country, companies and our workers.

We will enforce our trade laws and restore integrity to our trading system. Only by insisting on fair and reciprocal trade can we create a system that works not just for the U.S but for all nations.

As I have said, the United States is prepared to negotiate mutual beneficial bilateral trade agreements with all countries. This will include the countries in TPP which are very important. We have agreements with several of them already. We would consider negotiating with the rest either individually or perhaps as a group if it is in the interest of all.

At the end of the speech he said; We must invest in our people. When people are forgotten, the world becomes fractured. Only by hearing and responding to the voices of the forgotten can we create a bright future that is truly shared by all. The nations greatness is more than the sum of its production. The nations greatness is the sum of its citizens. The values, pride, love, devotion and character of the people who call that nation home.

President Trump have dedicated his life to the American people. To the world. I want to remind you that he is doing all this for only $1 dollar. What a man!

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Referendum for gold in Switzerland

The market never stand still. It moves up and down from day-to-day. November 30, 2014 is a day that can move the gold market forever. The Swiss people will vote on a referendum that`ll refresh the country`s centuries-long affinity for gold and restrain paper money.

Gold

According to Switzerland`s first opinion poll, some people in the country said they will increase and hold on to their gold reserves. Switzerland`s biggest daily newspaper, 20 Minuten, released this week the results of its online survey.

45% said they would support the initiative, but it also showed a high number of undecided voters. Some analysts say it is a clear victory for the «yes» side.

Swiss Central bank sold about half of its gold reserves in 2000 – 2003. Like the Bank of England, they sold the gold at the bottom price of $200 an ounce. Until then, Switzerland used to have the highest gold reserves per-capita in the world.

Switzerland holds about 1,040 tons of gold in reserve, and that`s 7,7% of the central bank`s assets. If the people in Switzerland vote yes, it will have a widespread effect.

For Switzerland it would be to hold the gold and not sell any more in the future, repatriate all their gold from overseas and require that at least 20% is physical gold bullion.

Many people still belive that gold is the foundation of a strong currency. Switzerland will be the first country this century to restrict the central bank`s ability to print money and expand government, but the gold market will be the first to feel the tremors. Analysts at UBS predict that Swiss need to buy about 1,500 metric tons of gold the next three years. It will cost the central bank between $67 and $83 billion. Last year, China purchased 1,176 metric tons of gold, according to China Gold Association. It`s not small amounts!

Barclays said that the supporters of the referendum face a difficult opposition. The Swiss National Bank and the Swiss government have been urging people to vote against the referendum, because it would impede the bank`s monetary policy.

Many people aren`t happy that the central bank has expanded its balance sheet to weaken its currency and stimulate growth, and many belive that debasing the currency is not a sound economic policy, but there is no evidence that a weak currency leads to long-term economic growth.

You can increase your export and benefit from that with a weaker currency, but does that outweigh the weaker purchasing power on imports? November 30, 2014. Mark that day in your calendar.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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