Egon’s Publications

Internal Memo from Jomas Thordan, President of the National Bank

Written December 1st, 2014 by
Categories: All publications, Egon's Publications

The below memo could have been written by Thomas Jordan, president of the SNB.

Internal Memo National Bank

From: Jomas Thordan, President

To: The Board of Directors

Date: December 1, 2014

I have been quite concerned about the outcome of the Gold Initiative referendum. That is why I have been in the media virtually every day for the last few weeks. I know that the National Bank should not conduct a campaign during a referendum of this kind but since it was a matter of national importance I had no other choice.

As you know, until 1999 we had over 40% gold backing in our balance sheet. At the time it was thought that this amount of gold was critical for the stability of the National Bank and our national currency. But fortunately we managed to change the constitution which allowed us to sell more than half of the nation’s gold at the bottom of the market. We have been bloody lucky fortunate that the Bank’s reputation was intact after this decision which cost our nation 30 Billion. It was clearly incompetent unlucky to sell the gold at the lows but market timing has never been our strong point.

I am extremely pleased that 77% of the voters agreed with my propaganda statements that gold plays no role in modern banking. Gold is a relic of the past. We can’t print gold and that is a major disadvantage when we want to manipulate manage our currency and financial markets. Our principles for managing the National Bank are now laid down by the Federal Reserve and ultimately Goldman Sachs. Here at the Bank we fully subscribe to the statement of the wise Mayer Amshel Rotschild: “Give me control of a nation’s money and I care not who make its laws.”

So fortunately we don’t have to buy any more gold and we should probably consider selling the 1,000 tons we may still own since it serves no purpose and has no yield. That would also give us ammunition to buy more euros.

The one concern that I would like to share with the board is our currency position. As you are well aware, we have printed over 400 billion and bought mainly assets in euros but also in other currencies in order to hold the peg above 1.20. We are all aware that printed pieces of paper are not really worth anything but since we are a national bank, we can just tell the people that it is real money. Fortunately they are foolish wise enough to believe us.

The reason I have been so nervous about the referendum is that the Bank is now sitting on the biggest speculative currency position of any major central bank in the world. Our balance sheet of 522 Billion is over 80% of GDP which is an extremely dangerous position for our country. It is virtually impossible to get out of this massive position without a loss of 10s of Billions or even as much as 100 Billion. Obviously the people would ultimately pay for this loss.

The 1.20 peg is artificial and throughout history no currency peg has ever held in the longer term. Over time currency rates always reflect economic and monetary differences between countries. Since our economy, for a while at least, is likely to continue to be stronger than the weak eurozone, our home currency will naturally outperform the euro. We are of course extremely grateful that the voters listened to our propaganda information during the campaign and rejected the Gold Initiative. But sadly the Bank’s problems are not over.

This peg was critical to save the bankers banks that had lent massive amounts of our national currency to mainly Eastern European banks. So now we are totally linked with the eurozone and at some point we should perhaps discuss to make this permanent. There are of course disadvantages to be tied to a very weak currency. Everything we buy in the shops is now more expensive. Also, we could be dragged down by euroland and end up with the same economic disaster they are in. But fortunately the people don’t understand these major drawbacks.

But the biggest problem with taking the euro as our currency is that the Bank would lose its ability to be irresponsible independent. The ECB would take over and we would lose all our power to print money.

Therefore I recommend to the Board that we stay as we are. But that still gives us the headache of our 470 billion speculative currency position. This is a timebomb and we know we will never be able to extract from it without very major losses. Hopefully the current board will have retired from the National Bank before this happens so a new board can be blamed for it.

Finally I would like to thank the Board for their support of my actions. The Bank now retains total “control of the Nation’s money” which is comforting.

Jomas Thordan

President

 

P.S. The above is a fictional account of events and any connection to a real situation is purely coincidental.

 

 

Will this save the Swiss financial system?

Will this save the Swiss financial system?

by Egon von Greyerz  – October 2014

swisssolidityflagOn 30 November 2014 the Swiss People has the opportunity to determine not just the fate of their own financial system but also to be the catalyst for the return to sound money in the Western World.

The “Gold Initiative” referendum November 30, 2014

On November 30th the Swiss will vote on:

  1. Returning their national gold which is held abroad back to Switzerland
  2. Requiring the Swiss National Bank to hold 20% of their assets in physical gold
  3. Prohibiting further gold sales

Money printing SNBSo why is this referendum so important?  Because Switzerland has, for hundreds of years, Read the rest of this entry »

Swiss to vote on gold repatriation in November

22 August 2014 – Egon von Greyerz

Swiss Gold Referendum on November 30

One of the very few remaining proper democracies in the world will vote on bringing the Swiss Gold back to Switzerland on November 30.

This is an initiative that could only happen in Switzerland. An influential member of parliament, Luzi Stamm, representing the biggest Swiss party SVP (Swiss People’s Party) started this initiative with two other parliamentarians.

In order to have a national referendum on an issue in Switzerland, 100,000 supporting signatures are required. The ‘Swiss Gold Initiative’ already achieved this requirement in early 2013.
Not only will the referendum deal with gold repatriation but also seeks to stop all gold sales by the SNB (Swiss National Bank) and to require the SNB to hold 20% of its assets in gold. Read the rest of this entry »

Gold Manipulators are Desperate

Written July 17th, 2014 by
Categories: All publications, Articles-3rdParty, Egon's Publications

Gold Manipulators are Desparate

From Egon von Greyerz(in reference to Paul Craig Roberts’s latest blog)

With virtually empty gold vaults, the central banks and bullion banks are now becoming desperate.

The action we are seeing in the paper gold market with the recent $50 takedown is yet more proof of the corner that the gold manipulators have put themselves into by having virtually no physical gold left.

A rising gold price is dangerous for the manipulators. This would inevitably lead to more physical demand, something that would be disastrous for the manipulators. As the holders of paper gold begin to realise that neither Comex nor the bullion banks or the Central banks have a fraction of the gold required to satisfy the gold paper claims, they will demand delivery. With the paper gold market being up to 100 times the physical market, there will of course be nowhere near the gold available at current prices to satisfy the outstanding paper claims.

The gold manipulators are going to lose this game. This is a certainty. The only question is when. They have managed to frighten investors by manipulating the price down substantially in the last few years. In spite of that gold has gone from $250 in 1999 to $1,300 today.

Read the rest of this entry »

Trade of the decade

Written April 10th, 2014 by
Categories: All publications, Egon's Publications

Trade of the decade

DOW-Q-1975-2014 The US stockmarket continues its rise to dizzy heights. The rise has very little to do with economic fundamentals but is more a function of money printing and the weak dollar.

The US in now slowly entering its hyperinflationary phase. Food prices are already up 19% in the first three months of 2014. On an annualised basis that is 76% which is a clear sign that hyperinflation is already starting.

The dollar is likely to start a severe decline this year on its way to the intrinsic value of ZERO. As it falls the vicious spiral of a falling currency and massive money printing is likely to destroy the US economy in a hyperinflationary depression. This will not only happen in the US but also in Japan, the Eurozone and the UK. But the US will be the first country to experience the destruction of its currency.

Read the rest of this entry »

The lost Century

Written January 30th, 2014 by
Categories: All publications, Egon's Publications

The lost Century

by Egon von Greyerz January, 2014

“In November 1910, some powerful US bankers joined by the influential Paul Warburg had a meeting on Jekyll Island that would determine the destiny of the world financial system and the world economy for over 100 years. This infamous meeting led to the creation of the Federal Reserve System in the US on December 23, 1913.

Read the rest of this entry »

Jim Sinclair: Gold via 3500 to 50000

Written October 31st, 2013 by
Categories: All publications, Egon's Publications, Media appearances

Jim Sinclair – Gold at $3,500 and $50,000

Very few people understand what is happening in the world economy better than Jim Sinclair.
But there is absolutely no one who understands gold better than Jim.

A must view/listen video from Greg Hunter of USAWatchDog.

Egon von Greyerz Read the rest of this entry »

Hyperinflation and Gold’s parabolic rise

Written October 27th, 2013 by
Categories: All publications, Egon's Publications, KWN weekly
Hyperinflation and Gold’s parabolic rise

There is a ridiculous amount of time spent on what the Fed will do or won’t do or analysing the latest economic figures. Very few people use their own brain to figure out the obvious. And the obvious is that debt which has been growing exponentially in the last 40 years, started its parabolic phase in 2006 when Bernanke became chairman of the Fed. So we don’t have to ask what central banks will do. Because it is guaranteed that they will soon start unlimited money printing to complete the debt parabola.

That means we are now starting the hyperinflationary phase in the USA and many other countries. And this will all start in 2014. What will be the trigger? The answer is simple – the fall of the US dollar.

Read the rest of this entry »

There will be no Tapering

Written September 18th, 2013 by
Categories: All publications, Egon's Publications, KWN weekly

How can the Fed taper when the real US economy is in a terrible state. Add to that the massive problems in the Eurozone. And Japan, the world’s third largest economy, is a guaranteed basket case.

In the US, the job participation rate is the lowest since the 1970s, real unemployment (calculated on a consistent basis) is 23%, workers’ Read the rest of this entry »

The real state of the world economy is dire

Written September 8th, 2013 by
Categories: All publications, Egon's Publications, KWN weekly

We are now back to the “green shoots” era of false hope and total misunderstanding of the real state of the world economy. There are minor tidbits of good news that combined with manipulated and seasonally adjusted economic figures are giving politicians worldwide reason for spreading their optimistic gospel of recovery that has nothing to do with reality.

A world based on debt

How can a world with $250 trillion of debt and over $1 quadrillion of worthless derivatives ever recover? Of course it can’t, especially since this is a world that is supported by legs of worthless printed paper money – legs that are just getting longer and more unstable by the day as trillions are added to the debt every year.

Read the rest of this entry »