Swiss Bet on Eurozone Breakup

Swiss army prepares for euro zone unrest – World News.

Switzerland is quite literally and figuratively in the middle of Europe. It is surrounded by the eurozone.

The country has been the recipient of billions of euros of deposits over the last two years as rich Europeans hedge their bets on a currency breakup. Only Switzerland knows the true extent of eurozone woes through the increasing cross-border currency flows.

What does it believe? Well, it has begun preparing its army for a possible euro meltdown. Troops are engaging in training exercises to seal the border from refugees and to maintain civil order in the case of a financial crisis.

The Swiss are doing their part to contribute to the eurocrisis. The SNB has established a floor on the value of the euro versus the Swiss franc and is spending gobs of francs to defend the floor. This action has helped to maintain the high value of the euro, which is hurting the countries that desperately require a competitive devaluation.

Keep those troops ready, William Tell.

dareconomics.wordpress.com

Advertisements

One thought on “Swiss Bet on Eurozone Breakup

  1. The Swiss are responding with the clarity of vision that their financial refuge status gives them.
    Over the past two years, French police are stationed on main roads crossing from the pyrennees to Switzerland, stopping any vehicles with Spanish or Portuguese license plates and searching occupants for cash equivalent payment methods over 10,000€ per person.
    Swiss banks in Spain will open a Switzerland-based account for you if your initial deposit is a minimum of 300,000€ to 1,000,000€, depending on the bank, but will tell you they are unable to do that if you wish to transfer less.
    Hence why official bank run figures are tremendously inexact, and the Swiss are 20/20 on the issue.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s