Frank R. Suess on the Devaluation of the Swiss Franc, America's Expanding Currency Controls and the Future of the Euro
The editors of The Daily Bell are pleased to present an exclusive interview with Frank R. Suess (left).
Introduction: Frank R. Suess, CEO & Chairman, BFI Consulting, started his career as a management consultant with Andersen Consulting in 1989. Before taking the lead at BFI Consulting in 1998, he held a senior management position with Price Waterhouse working as a strategic and operational management consultant to a number of international corporations. Mr. Suess is Swiss by background. However, he obtained part of his education in the United States. He has an MBA with Honors from the Haas School of Business, UC Berkeley, California. And he holds a Bachelor´s Degree in Finance, magna cum laude, from Saint Mary´s College in Moraga, California.
Daily Bell: Nice to have you back again. We look forward to getting your Swiss perspective.
Frank Suess: Thanks for inviting me. It's always an honor and a pleasure.
Daily Bell: Let's get right into this, Frank. After this week's intervention by the Swiss National Bank (SNB), has the Swiss franc lost its safe haven currency, also considering it is no longer backed by gold?
Frank Suess: I don't think so. Ultimately, the fundamentals of Switzerland are very solid. And, more importantly, the fundamentals of the US dollar and the euro are very weak in comparison. Switzerland has a long tradition of political stability, economic prosperity and solid rule of law. At the foundation of Switzerland's success stand its independence and its system of direct democracy. The overall package has led to a long tradition of trust in a currency that is considered strong and a secure store of value – the image of a "sound money" so to speak.
Yet, as you mentioned correctly, the Swiss franc is no longer constitutionally backed by gold. Until roughly a decade ago, the Swiss constitution required a 40% gold backing. When that was given up, unfortunately, the Swiss franc joined the mob of pure fiat currencies based solely on the trust and creditworthiness of the Swiss government and the SNB's monetary decisions.
Consequently, the Swiss franc too is exposed to the whims of fiscal and monetary policy. This week's interventions by the SNB stand testimony to that.
Daily Bell: Do you think the Swiss National Bank (SNB) should be devaluing it against the euro and US dollar as it has?
Frank Suess: Over the past few months, international investors have been increasingly looking for safety in the Swiss franc as their trust in currencies and financial markets elsewhere has become brittle. With the dramatic rise of the franc, political pressure on the SNB mounted rapidly. A few weeks ago, in response, the SNB embarked on its own Swiss version of quantitative easing.
Then, this week, the SNB shook the markets with a statement that could not have been clearer: "With immediate effect, we [the SNB] will no longer tolerate a EUR/CHF exchange rate below the minimum rate of 1.20. The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities."
The wording – "...with immediate effect...", "...utmost determination...", "... in unlimited quantities..." – was certainly chosen very carefully and deliberately. The goal was to jolt the markets. And, that objective was reached. After the announcement on Tuesday, the euro appreciated sharply by about 10% versus the franc.
Therefore, one might say the SNB's intervention was successful. However, that is short-sighted. I am not a friend of these measures.
Ultimately, the SNB cannot control what happens to the economies in the rest of the world. Unless the EU and the US get their houses in order – which won't happen any time soon – it will be very difficult for the SNB to keep the Swiss franc from rising once again.
First of all, while the Swiss franc is globally well-respected as a safe haven currency, it is by no means a currency that in terms of size and circulation can be compared with the US dollar, the euro or the yen. The balance sheet of the SNB is relatively minute compared to those currencies. Thus, the interventions available to the SNB are far more limited.
Secondly, in the world of fiat currencies there are no 'good' or 'bad' currencies. There are only 'better' and 'worse' currencies. Relative to other fiat currencies, the Swiss franc is still a 'less bad' and thus safer choice. I don't expect the SNB´s interventions to turn the Swiss franc – a 'better' currency – into a 'worse enough' currency to ever be even less attractive than the euro or the US dollar.
Remember that, while we had a sharp rise in the Swiss franc last week, the currency exchange rate to the euro and the dollar are still at historically low levels. At the beginning of 2010, the Swiss franc stood at 1.50 to the euro. At 1.20 one might still consider the CHF overvalued in terms of purchasing power.
So, in conclusion, while this is not good for Switzerland, it won't break the Swiss economy. The Swiss will get through this mess in relatively good shape – better than then rest.
They will weaken the Swiss economy, not make it more competitive. The devaluation "strategy" might work for a while but the SNB will probably end up losing a lot of good Swiss francs by buying up a lot of lesser foreign currencies that they have to sell at a loss later.
However, the Swiss franc will still remain one of, if not the, best fiat currency. It will continue to depreciate versus gold, though. Gold is the "best currency" of all. The SNB's actions have made very transparent why even for Swiss people it is paramount to have part of their wealth in gold.
Daily Bell: What is your opinion about Thomas Jacob's idea of launching a new competing gold-backed franc?
Frank Suess: I'm in favor of any endeavor that aims at installing a gold backing to a currency. The natural supply limitations of gold will provide for a natural limitation of government powers.
In the case of Thomas Jacob's idea, the proposal is to create an additional, parallel currency to the national Swiss franc. The 'Swiss Gold franc' would be constitutionally regulated as an official coin with a specified gold content. With its gold content, it could serve as an ideal store of value for Swiss and international savers, while the Swiss franc could still be used as the main currency of exchange.
It will be interesting to see how the initiative is received in Parliament. Even if it ultimately does not go through, the public debate in this context will hopefully have a positive effect and remind the people in Switzerland – and possibly elsewhere – of the importance of a gold backing and sound money.
Daily Bell: Is the Swiss People's Party continuing to gain momentum? Do you see positive change as a result for Switzerland?
Frank Suess: We will have elections in the fall. I have not been following the polls lately, but in the context of the economic and political developments of our neighboring countries, I would expect the Swiss People's Party to again do very well in those elections. The party stands for freedom and independence. It has been the only party that has been steadfast in its rejection to join the EU.
I think it is pretty much common sense that, contrary to the leftist propaganda, Switzerland has fared extremely well 'outside' of the EU. For instance, the rate of unemployment in Switzerland is currently about 2.8%. Compare that to unemployment of any of our European neighbors, or to any other country for that matter. In most countries an unemployment rate of 2.8% would be considered a state of full employment.
Nevertheless, for years now, socialists and centralists in Switzerland have propagated that Switzerland would falter by being too isolated without an EU membership. Reality has proven them wrong again and again. Yet some, amazingly, still continue to preach their nonsense. Voters in Switzerland recognize that. That's a good thing. Switzerland will do comparatively well in the crisis ahead, BECAUSE they are not members of the EU.
Daily Bell: What is your opinion about the ECB and the launching of euro bonds?
Frank Suess: Until around 2007, the ECB, largely in the tradition of the German Bundesbank, focused on price stability and sound monetary policy. In comparison to the US Federal Reserve, the ECB acted on a much more restrained basis. Accordingly, the euro continuously strengthened in its acceptance as an international reserve currency over the past decade. It became a serious contender to the US dollar.
In the aftermath of the 2008 crash, the US Fed launched its quantitative easing campaign, while the ECB initially rejected going off on the same trajectory. That ignited an outright currency war. Ever since, we have seen the two currencies basically racing each other to the bottom.
The US Treasury has, since the beginning of 2009, regularly had problems selling its Treasury bills in the open market, thus being forced toward unprecedented levels of debt monetization – in essence, issuing government bonds and buying them back themselves with their freshly printed funny money. Interestingly, it was precisely in that context that the US rating agencies started downgrading the credit ratings of European countries...
When Greece's credit rating was downgraded, there were a host of other candidates, including the US, which objectively could have been downgraded too, possibly even sooner. If the quality and independence of US rating agencies was put in question during the subprime debacle, they should certainly have now lost the last notch of credibility. Yet, markets still listened.
Consequently, Europe and the ECB have been pulled into a game that they are not good at playing. The EU, contrary to America, however, is not an organically and historically grown unit. It is a patchwork of nations and cultures that, not too long ago, were trying to cut each other's throats. This is reflected in Europe's indecisiveness and incapacity to manage the European debt crisis. In my opinion, it is this which has, so far, saved the US dollar from collapsing completely. Relatively speaking, the European currency looks even worse to part of the financial markets. So, both currencies are depreciating in sync, making it less obvious to most.
As we speak, the insurance on the debt of several large European banks is on the rise. Credit default swap rates on the bonds of banks like BNP Paribas, the Royal Bank of Scotland and even Deutsche Bank are at historic levels.
Should the EU issue euro bonds? I think that euro bonds could indeed temporarily help the euro, as well as European banks and economies. However, ultimately, it has become painfully apparent that the EU construct is fragile and lacks "poise under pressure".
Daily Bell: Should there be more centralization for the EU and a continent-wide taxing authority?
Frank Suess: To the contrary, in the medium- to long-term, I would expect a de-centralized, confederate system to work much better for the EU. However, the EU long ago went down the road of centralistic bureaucracy. It is a failed construct that is not backed by the people and never was.
I wish the EU would have a closer look at the Swiss system and copy some of its nuggets. That combined with a gold-backed euro would be a solid mix. However, that won't happen.
Daily Bell: Do you think the euro will survive as a currency?
Frank Suess: At this point, there is still a lot of political will and influential groups – not just in Europe – who want to keep the euro alive. Thus, I would not count the euro out too quickly. However, I think it will fail in the end, at least in its current construct. Multistate currency unions, historically, have always failed.
Daily Bell: Do you think there is a global money power desirous of installing global governance?
Frank Suess: There are elitist groups with influence. Some of them tend to even have a bit of a conspiracy smack to them. The most prominent is probably the Bilderberg Group. There are also elitist forums such as the World Economic Forum in Davos, Switzerland. Then, there are large international institutions such as the United Nations, the IMF, the World Bank, and of course the G's (G20, G10, G7...).
I don't believe that any one of these groups or gatherings have an explicit and orchestrated intent to rule the world. I am not a believer in conspiracy theories. I do think, however, that the leftist and elitist "do-gooders" have a natural and deeply ingrained tendency to 'solve' problems and 'manage' the world with centralistic panaceas that don't work. They love to harmonize, centralize and bureaucratize anything that crosses their paths. Possibly, they even mean well. Possibly, they just don't know any better.
Daily Bell: Do you think the IMF and World Bank will end up issuing and managing a global currency?
Frank Suess: There may be people who daydream about further extending the fiat currency system by having yet a 'bigger and better paper system to play with'. But, I don't think that will happen any time soon.
Special Drawing Rights (SDRs), for instance, have existed for many years. They serve as a means of lending between IMF members and central banks. However, I don't expect SDRs to act as a viable global currency. SDRs are basically units made up of a basket of international currencies. The largest part of that basket today is made up of US dollars. The current weighting, however, no longer reflects economic realities. The Chinese, therefore, demand a bigger piece of the pie and the influence and power that could come with it. The same goes for Russia, India, Brazil and Europe, too.
At this point, I don't think these different contenders will be able or willing to come to terms. Thus, I don't expect SDRs to take over the role of leading reserve currency. If, as we discussed before, the EU can't manage a crisis with the euro, one can imagine what a political mess a world currency will make.
Daily Bell: Are the wars in the Middle East and North African States more about readying the targeted nations for global political consolidation by installing Anglosphere controlled puppet regimes?
Frank Suess: I don't know what ultimately triggered the 'democratic' movement in the Middle East. What's clear, though, is that NATO did not really pursue the 'humanistic' resolution and mandate given to it by the UN. And, as Muammar Gaddafi appears to be losing the battle in Libya, several Western leaders are falling over each other to meet with the new regime. Nicolas Sarkozy and Silvio Berlusconi have already knocked on the doors of 'New Libya' to secure some juicy oil contracts and to negotiate African migration issues.
Whatever the true background story is, one thing is certain: the Middle East has not become a more stable and peaceful place as a result of it all. To the contrary, if "somebody" orchestrated all of this, then they have indeed further destabilized the region for possibly a very long time.
Daily Bell: Is Western-style regulatory democracy a failed concept? Does central planning work?
Frank Suess: I don't think that Western-style democracy has failed nor do I believe that capitalism has failed. I think that both have not really been given a chance to be truly implemented and to fully unfold.
I am a great fan of the American Constitution and its Amendments. It has many similarities and common roots with the Swiss democratic system that I treasure. The basic democratic concept defined in the American Constitution is, in my opinion, still an excellent model, one founded on the right of privacy, property and freedom. However, the rules and regulations in place in the United States today, unfortunately, have very little resemblance with the Constitution. And, ultimately, it will only work in combination with a sound money system.
Forty years ago, US President Richard Nixon ended the gold standard and announced the end of the Bretton Woods International Monetary System. Either knowingly or unknowingly, he unleashed the fundamental ingredients of the toxic monetary and fiscal waste the world is dealing with today. Since 1971, the progression of decreasing interest rates and increasing debt in Western societies has been steady. The world has witnessed a variety of business cycles and a number of financial market crises over this period. The one common denominator throughout has been increasingly loose monetary and fiscal policies.
These policies were the reason for the sub-prime crisis and the crash in 2008. And these policies are the reason we are headed for the worst economic downturn since the 1930s, with all the ramifications and implications that will come with it.
Daily Bell: Please describe the decentralized approach of the Swiss Federation. Is it working?
Frank Suess: At the core of the Swiss system is the concept of a direct democracy. It allows Swiss citizens to vote directly on government decisions via initiatives and referendums. Every three months, we vote on specific issues and laws. Thus, contrary to all other democratic systems that I am aware of today, we do not merely elect our representatives to Parliament. We actually have the right to accept or reject the ideas and laws they propose. That creates a whole different level of control and accountability.
Furthermore, a lot of fiscal responsibility is delegated to the Swiss cantons and counties. This improves the quality of decisions as they are not made in some central, far-away place, but instead by the people directly impacted and involved. Hand-in-hand with the fiscal responsibility comes the tax competition that exists between different Swiss cantons and counties. Tax competition, contrary to tax harmonization, very directly leads to lower taxes, better quality of spending and a slimmer state.
Daily Bell: Should the US government, as Ron Paul states, get out of the backyards of other countries and stop spending trillions of dollars on these overseas wars?
Frank Suess: To a large degree, I think so. The interventionist strategy of America may have created more problems than it has solved. It's cost America way too much money. There are plenty of issues in that the dollars spent on Iraq, for instance, could have been better spent at home. And that kind of illegitimate intervention, based on false pretenses and lies, has not supported worldwide peace or made America a safer place, to the contrary.
Daily Bell: Why do you think the American public tolerates this aggressive foreign policy? Is mainstream media partially to blame for trumpeting fear-based propaganda?
Frank Suess: Yes, I would agree with that. Fear is certainly a good tool for influence and control of the people. I notice that very quickly when I fly to the States. The security checks are out of control and beyond common sense. I invite any American to fly to Zurich and compare the welcome you get there to what awaits me as a foreigner at US airports.
In this context, the speed at which independent information spreads across the globe today, to a large extent via the Internet, is making it increasingly difficult for governments to keep their actions and agendas as secret as they would like.
Daily Bell: The US dollar's purchasing power has been steadily declining against gold, something we have long been predicting. Is the US dollar in its final days of being the world's reserve currency?
Frank Suess: Gold is telling us a story, at least for those willing to listen. It is loudly and clearly announcing the demise of fiat currencies, with the dollar in the lead. I doubt that the dollar in its current makeup will exist much longer. Similar to the euro, there are a lot of people who want to keep the dollar alive and will support it. Yet, again, I would not count it out too quickly.
However, America does have a formidable heap of problems to solve. The US debt levels, particularly when including unfunded liabilities, will never be paid back. The debt ceiling was raised without meaningful spending cuts. The recipe to counter the debt problem continues to be the creation of more money and more debt. At some point, that "strategy" will falter.
Daily Bell: What should concerned people do, who presently have US dollar exposure? Perhaps your Global Gold Program makes sense?
Frank Suess: Yes, if you have not yet stocked up on physical gold bars and coins, it is high noon to do so. Rising inflation and an accelerating depreciation of the dollar is a risk that needs to be managed.
I'm convinced of the absolute necessity to safely keep a portion of your assets in physically allocated precious metals, particularly gold and silver. The world's financial system and fiat currency model is flawed. A growing number of savvy investors recognize that. In the interest of preserving and growing their wealth, they wish to safely store allocated precious metals in a secure location, from where the metals can be delivered anytime and anywhere, or sold promptly and conveniently when the time is right.
Global Gold offers its clients a solid solution that addresses precisely those objectives. It offers a non-bank, straightforward setup that works and meets our clients' needs, even during a severe financial crisis. With Global Gold, you buy physical coins and bars that you directly own and store safely in a high-security storage facility in Switzerland.
Editor's Note: To request more information on the Global Gold Program – Click Here.
Daily Bell: What about US equities? Warren Buffett seems to think they are cheap now. What do you say?
Frank Suess: I say wait! They will be a LOT cheaper still.
Daily Bell: How about silver? Is physical silver a sensible thing for people to own as well at this time?
Frank Suess: Silver has a slightly different character than gold in that it is used industrially. However, silver is the 'poor man's gold' and will do very well in a severe financial crisis. Also, silver is currently at an extremely interesting ratio to gold. Thus, contrary to stocks, silver is indeed cheap and I would recommend owning a portion of physical silver next to gold.
Daily Bell: Should Americans be concerned about a potential gold confiscatory action by their government? Is this possible in the 'Net era?
Frank Suess: Personally, I would be more concerned about a variety of explicit and implicit exchange controls. Already, anybody observing the host of regulations flowing out of Washington must be very concerned.
Recently, one law that has been given much too little attention in America is Foreign Account Tax Compliance Act (FATCA). I recently wrote about this and will be happy to send you the link to the article. I recommend that every American taxpayer take a close look at this law, consider its implications and then write a letter to your preferred congressman.
Here is a link: http://www.mountainvision.com/newsletter.php?view=f4b9ec30ad
Daily Bell: Any final thoughts you would like to share with our readers?
Frank Suess: I would simply advise your readers to prioritize risk management and wealth preservation over any other investment considerations at this point. As part of your wealth preservation strategy, jurisdictional diversification is crucial.
As in team sports, a solid offense is based on a strong defense. There are times when you need to prioritize one over the other. This is not a time to procrastinate. And, it is not a time during which you should trust in the 'noise' of mainstream media. It's all smoke and mirrors.
Daily Bell: Thank you for taking the time to sit down with us again.
Frank Suess gives us a lot to think about in this interview. We've commented on some of the trends – and of course the crazy decision to link the Swiss franc to the failing euro. It's very obviously a political decision, designed to ensure that all eurozone currencies degrade equally.
Toward the end of the interview, he mentions FATCA and its ongoing implementation, which will actually come into force so far as we can tell in 2013/2014. FATCA is a deeply ominous program, because its over-riding assumption is that the US can tell other countries around the world and their banks how to do business with US citizens.
Basically, in a few years' time, the US will insist that banks around the world withhold up to one-third of the funds they receive in accounts for US nationals and turn them over to the IRS. This withholding would take place if the US national himself is not providing to the IRS the requisite taxes and information.
In the US, taxes – all in – can come to 50 percent of a person's income, when one includes various local and state taxes, sales taxes, house and car taxes, etc. One of the surprising things about Islamic Sharia Law, as we have pointed out in the past, is that it apparently mandates taxes in the area of one to two percent. This is never mentioned in ongoing dirges about the horrors of Sharia law and its terrible consequences.
In fact, in the Middle Ages, serfs tithed one-third of their income to their lieges, a far cry from the 50 percent that many (even middle class) individuals now pay to their governments (or more). The assumption is that governments can do more with funds than the individual can. One only needs to look at the deteriorating infrastructure in Southern Europe or all over Middle America to see this is not true.
In truth, government is incapable of wise redistribution of funds. It's simply a myth. Only the free market itself can adequately redistribute capital and properly direct it. Every government project is inevitably influenced by deciders' self-interest. The more money that is spent, the more inefficient government is.
While it is easy to make the argument that government can do little or nothing that is competent (as there is no competition to keep boondoggles in check), FATCA represents a huge step forward in terms of US insistence regarding its graduated income tax program. Despite congressional calls for repeal of the US's inefficient, wasteful and repressive taxing system, Congress itself, via the IRS, is expanding the program to the WHOLE WORLD.
This is a statement of unlimited US power. It is also a comment on US citizens and their rights. What the US government is telling its citizens is that the government unilaterally has a right to pursue citizens and enlist other countries (and banks) to enforce US laws.
We have often pointed out that the one of the keystones of freedom is the ability of people to pick up and leave and move to another place when government becomes too oppressive. Greece, Renaissance Italy, even the 13 original colonies of these United States of America prospered because the hand of government rested lightly on its citizens. In today's world, the trends are toward consolidation and creeping totalitarianism. The US, in some ways, seems to be leading the charge.
Posted by dbfocus on 09/15/11 12:44 PM
Hi Cat writer. You can email me at dbfocus@Click to view link. I would be glad to share information on Switzerland with you. Just let me know what specific interest you have ok. Have a great day.
Posted by Bischoff on 09/13/11 07:10 PM
"Gold is just another commodity." This statement has the effect of rendering your argument circular. It's like a dog chasing its tail.
"Gold is Money, and nothing else", that was J.P. Morgan's answer to a question asked by the 1911 congressional Pujo Commission. I am convinced that J.P. did know something about money, and I agree with his answer.
Gold is a commodity, no doubt. However, what sets it apart from any other commodity, is the fact that it is the most "liquid commodity", bar none.
Gold has a marginal utility that is constant, or nearly constant. No other commodity has that kind of utility.
In the middle ages, when both gold and silver were currency, the ratio between the two currencies varied with the supply of each. However, after 1853 when gold became money "de facto", and particularly after 1900 when gold became money "de jure", the "gold standard" was solidly established in the USA. At that time silver lost its position as Money. It is today mostly an industrial commodity.
"At this moment, Gold is telling us that we are still crashing with a depression underway. If gold drops in half in terms of paper money, that would be in my view a correction typical in markets."
This statement examplifies the "circular" argument which I mentioned.
It isn't gold that is dropping. Gold, whether officially acknowlged to be the standard or not, is in fact the standard by choice of billions of people all over this world. What is dropping or rising, is the value of the irredeemable currencies vis-a-vis a specific amount of gold.
As to prices for goods and services, these are determined through arbitrage in the markets. To properly understand the determination of prices, one has to understand that the customer comes to the market with a different interest than does the supplier or producer.
The customer operates pretty much on the marginal utility theory put forth by the Austrians. The interests and decisions of the supplier or producer depends largely on the standard of value to measure work. The value of work contained within a product or service is measured against the work required to mine and refine a specfic amount of gold.
It is true that the value standard of gold for the USD/FRN has been officially replaced with the value standard of Saudi crude. (Saudis will quote crude ONLY in terms of USD/FRN). However, the value graph of Saudi crude perfectly synchronizes with that of the value graph of gold. Check it out.
Therefore, the only conclusion that can be drawn, is that gold must be the standard. Gold is "Money" and not "just another commodity".
Posted by cat writer on 09/13/11 09:16 AM
Gold is just another commodity. During the Middle Ages, the ratio of gold to silver was as high as 1:11+. During the 1930 depression, it was 1:~100. In gold rush areas, gold lost value because of the excessive local supply. It was inflation money.
At this moment, Gold is telling us that we are still crashing with a depression underway. If gold drops in half in terms of paper money, that would be in my view a correction typical in markets. That does not mean that the prices of goods and services will stay in the same place. They can drop farther and faster than gold---think American real estate and stocks.
Posted by Bischoff on 09/12/11 06:40 PM
"Gold may drop in half"... ??? What does that mean... ??? Only Gold is Money. How can Money drop in half... ???
If you buy an ounce of gold for $1,900 USD or for $1,500 USD, an ounce of gold is an ounce of gold.
Whether "One" USD goes up or down in terms of quantities of gold has nothing to do with an ounce of gold remaining an ounce of gold.
Gold will never drop in half, because an ounce of gold does not all of a sudden become half an ounce of gold.
To put your mind at rest, I think I know what you mean by your statement.
However, it should be clear in people's mind that Gold is Money, and Money has no "Price". The quote of $1,900/ounce of gold must be properly read as 1 USD for 1/1900th of an ounce of gold. The standard is gold, not the irredeemable USD. The value of the USD may appreciate vis-a-vis gold, but that does not mean you loose money.
Posted by cat writer on 09/12/11 06:00 PM
I have been interested in Switzerland for quite a while.
How can we connect?
Posted by dbfocus on 09/12/11 03:45 PM
Interesting remark for sure. Have you ever lived in Switzerland for a long period of time and owned & operated a company here? I do and as an American can tell you first hand that the Swiss conduct business nothing like the way we do in the USA. Besides, Switzerland has been around about 500 more years than the USA anyway and believe me, they have their own way of doing things here. If anything, it's us American business owners that should take the time to learn a thing or two from the Swiss. :) Have a good day.
Posted by delwyn on 09/12/11 07:04 AM
Frank Suess is right about the need for a gold backed currency. Lobby for and and support that idea because the world's problems will just get worse until gold retakes its rightfull place. 5,000 years of history as money
trumps all fiat fiats.
In the meantime gold has gone hyperbolic (no tree can continue to grow to the sky - DON'T YA KNOW) and has topped and the dollar will be strong for years. The Anglo financial power elite will not want what they are lending out (the dollar) to lose any more value - plus they will be getting out of most all other assets. Stocks, real estate, junk bonds, most commodities and aniques/collectables are due to drop 90 percent into the 2016 low of the GREATER DEPRESSION. Gold may drop in half. Unemployment may hit 35 percent. The Kondratiev wave theory says so. Welcome to the Kondratiev winter. Burrrr!
PS CASH IS KING (in any depression let alone the GREATER DEPRESSION).
More at my website:
Click to view link
My latest article is: DHIMMITUDE IN OBAMACARE MEANS SHARIAH LAW IS COMING TO AMERICA.
Delwyn Lounsbury - THE DEFLATION GURU
Posted by cat writer on 09/12/11 01:12 AM
I was there. Literally worked on Wall Street. (The NYSE is actually on Broad Street.)
As the great Zen master Yogi Berra said, "You can observe a lot just by watching." I speak from experience. I worked and lived in many places as a consultant. I have covered every degree of longitude, and that is still not enough.
I am not that poor. To steal from the other great Zen master Rodney Dangerfield, I have enough so that I can pay attention.
It was not just the Swiss that were corrupted in and by America. It was the whole planet. I saw and experienced that entire process.
I have a vested interest in civilization and that is why I am coming out with these statements. Someone has to stand up and ring the bell.
Posted by borisc on 09/11/11 11:46 PM
Yes, in that wealth of energy, i describe, is included wast shale gas resources.
Posted by Bischoff on 09/11/11 10:51 PM
I'd rather not talk out of school. However, I'll give you my view points on Buffett, Gates and Soros.
Buffett grew up in Washington, DC where his father was a Republican Congressman from Omaha, Nebraska. Howard Buffett was an ardent supporter of the gold standard. He was strongly opposed to F.D.R.'s confiscation of Americans' gold. His son, Warren Buffett became very much a follower of the equity investment theories of Graham and Dood while in college. He applied these theories with the purchase of Berkshire-Hathaway as a holding company and the rest is history. Warren Buffett knows exactly how an economy works, and he knows exactly how the present monetary system works, which BTW his father opposed with all his might. At this point, Warren realizes that the only chance he has to salvage equity for his shareholders is to be a friend of the Democrat politicians in the White House and the Democrats who run the U.S. Senate.
As to Bill Gates, he build a world wide empire with Windows. The brains behind Microsoft's finances is his father. Gates, and his cofounder Allen tried to keep themselves out of politics until the Clinton Administration went after them. Allen sold his shares in Microsoft. On the urging of his father, Bill Gates has come to see things like Warren Buffet does.
As to George Soros, he has his own philosophy about government. Sometimes his ideas are outright cooky. Even his son at times thinks that his dad ought to be committed. Nevertheless, George Soros knows the foreign currency exchange markets. He bet on the devaluation of the British Pound, and he made billions on the bet. He knows how to use leverage, primarily by agitating on the left side of the political spectrum. Unlike Buffett and Gates which have contributed greatly to the American economy, Soros has been merely a speculator in foreign currencies which may or may not have helped the USD.
Posted by dotti on 09/11/11 06:41 PM
I get it. Who's going to tell Warren Buffett or Bill Gates or George Soros that they are wrong--about anything.
Intimidation is a very powerful tool--and often it is self-induced.
Re: "In my experience, if you stand up to these "superior people" by failing to be cowed by political correctness or by rejecting the necessity "to belong", these "elitists" often don't have the guts to fight back directly."
Sounds like you have an experience to relate, Ingo!!! Go for it!
Posted by Bischoff on 09/11/11 06:24 PM
To your question, "Would you say that what they cannot harmonize, centralize and bureaucratize, they would influence/destroy?"
I think what Frank Suess means, to which I add my agreement, is that there are people in the world who see themselves as more knowledgable, more intelligent and more capable than average people.
The attempt to "harmonize, centralize and bureaucratize" the affairs of "Man" springs from this "superior" perception of themselves. Some of these "elites" who cannot get their way, do resort to subterfuge and threats to achieve their goals. However, they are in my opinion a very small number.
Most of the "elites" rely on the fact that they are able dazzle the average person with their "brilliance" to elicit agreement with their solutions.
In my experience, if you stand up to these "superior people" by failing to be cowed by political correctness or by rejecting the necessity "to belong", these "elitists" often don't have the guts to fight back directly.
Posted by dotti on 09/11/11 06:11 PM
Re: "... How many Swiss in the past generations went to the United States and other wretched venues to learn how to do business... ."
Well, Cat. If you're saying what i think you're saying, that's an interesting thought.
Posted by cat writer on 09/11/11 04:48 PM
It has to do with knowing the price of everything and the value of nothing.
Actually, that is a bit extreme. If I were in the market for a chocolate and the chocolate from Belgium, all other things being equal, is the same quality as one from Switzerland, I would choose the Belgian chocolate. Of course, that difference may disappear because the materials would become more expensive in terms of Euros.
In terms of gold, everything has become ridiculously cheap!
Strange choice? Logical choice. How many Swiss in the past generations went to the United States and other wretched venues to learn how to do business? Drink sewer water, just do not come complaining to me that you have typhoid.
Posted by cat writer on 09/11/11 04:40 PM
As I have said before, The Elite are only elite by their ability to organize and manage large-scale activity and thus delivering what the non-Elite wants.
As I have said before, it is not The Elite but the entire nation that is responsible and accountable for these results. For Americans, taking responsibility and standing accountable are against their entire religion or belief system.
So I have no patience with those who hang the entire burden of guilt on some Frankfurt family or some small group in the City or some boondocks in central Asia. You Americans can choose to follow or repudiate them and their fraud and violence. You Americans, on a regular and consistent basis, inflict harm and destruction on the smallest and most intimate of scales.
I read a Web whine about the Little People who get stepped on by the Giants. Deluded by their own assumed grandeur, Americans are Little People who are out to cut everyone down to their size. Only a nation of losers has to remind the world of how special they are. If Americans were really big as individuals, they would be doing big instead of trying to convince others that they are.
After the 1720-23 bust, Jonathan Swift went kicking with Gulliver's Travels. Apparently the Anglo world took much of this to heart, therefore establishing the recovery and expansion beginning from the century's end and thanks to the United States, ending not only the supercycle but the entire civilization right freaking now.
I feel like Lemuel Gulliver and it stinks.
I would love to see, before I die, one American who understands that United States begins with "U"--YOU. I hold out not much hope unless I reincarnate sometime next century.
Posted by alexsemen on 09/11/11 04:28 PM
DB: In today's world, the trends are toward consolidation and creeping totalitarianism. The US, in some ways, seems to be leading the charge.
Alex: After I've read a lot ( and defining the 9/11 from the beginning - first dozens minutes of transmission - as the perfect Power that Be huge Scam) , today in the time of official mass hysteria about this new religion of the battle against terrorism ( Stalin invention) you DB , you said the Truth: it will be the perfect Totalitarism, Despotism, Tyranny
Frank Suess: I don't think that Western-style democracy has failed nor do I believe that capitalism has failed. I think that both have not really been given a chance to be truly implemented and to fully unfold.
Alex: This is not any more than the well known denial faze of one psychopathologic syndrome of cultural organized establishment of the politically correct delusion , as inductor paranoia and mass deceiving through his diploma expertise !
By the way so many 'Magna cum Laude ' and as 'expert' brutal misuse of plain tautologies and euphemistically politically correctness way of speaking , that will be easy considered as pathognomonically for a persona defined as compulsory mythomaniacale behavior as a result of very deficient/ not proper instruction and defective character - societal /system achievement or as genetically deficiency !!??-
If the Capitalism and the Democracy ( western style ) could produce such priests and truly believers in that perfect Supernatural total Mess Producing Machine , I have the absolute right to suspect the abilities of that person Frank Suess to see the reality !
Just wandering !
If he was so Multe, Multe Magna cum Laude , why in God's name he wasn't at least able to see as a humble servant of Pricewaterhouse and Coopers ( read the Power that be) the crisis to came !
Myself without any USA diploma and Cum Laudae , as a humble doctor I've saw what will be from the end of 1990 !
There one difference : Frank have to have diploma's in place of encephalon as long I have just brains ( a lot of billions neurons) .
Take it for sure , without any doubt :
With such big diploma's never ever , the real free-market economy will have the smallest chance to exist !
Posted by cat writer on 09/11/11 04:24 PM
The Americans compromised Switzerland in 2008 with reporting requirements. Of course, several Swiss concerns dropped their US citizen customers, although US citizens working in Switzerland who have wage taxes and social 'insurance' withheld certainly have no such issues.
Switzerland stood up to all sorts of tyrants from Hapsburgs to Hitler for over seven centuries. But America killed it. Memes travel fast, but Anthony, it is not only our memes that get out to the Internet.
As I alluded to in the previous feedback comment, God, that is, the Hebrews themselves, resorted to violence and deadly force and trickery in order to achieve their freedom. It will be just as necessary, regrettably, beginning right now.
The Ten Plagues did not occur overnight, but as natural disasters over years and decades from which Egypt was increasingly difficult to recover. America's weather disasters from 2004 can be likewise regarded. A financial wipeout will do wonders for insurers. I am sure that there will be other 'miracles' that can put an end to your nonsense nation.
You are quite correct when you say that this likely began centuries earlier. I propose 1629-1630 when Puritans started to settle in Massachusetts.
Posted by cat writer on 09/11/11 04:11 PM
"In fact, in the Middle Ages, serfs tithed one-third of their income to their lieges, a far cry from the 50 percent that many (even middle class) individuals now pay to their governments (or more). The assumption is that governments can do more with funds than the individual can. One only needs to look at the deteriorating infrastructure in Southern Europe or all over Middle America to see this is not true."
In ancient Egypt, prior to the Exodus (provided that the entire story is accurate), the Hebrews were NOT slaves, but workers. Avodim Hayyenu translates to "We were workers".
Pharaoh exacted tribute in commodities and in labor, not money. The labor consisted of being drafted into public works projects for four months of the year. To the average Egyptian wage worker, that was like serving in the National Guard or jury duty. To a Hebrew free-lancer or businessman, that was a 1/3 loss of income. For this, they protested and left, with the help of Moses' and Aaron's magic and salesmanship. And given what God truly represents, we can add in a significant amount of bloodshed.
So Jews commemorate the Exodus with an annual festival of freedom: Passover. However, most the Jews in America desecrate their heritage and festival in their daily activities, supporting socialism. (Rabbis in 1932 Germany endorsed Hitler from the pulpit.) Lieberman, Hanson, and others, largely Democrats, have had no reservations about increasing the tax burden to 50% and more. Ramses II and his successors have nothing on this crowd.
Stupid is as stupid does, and it WILL happen again, in the Land of the Free and Brave [snicker]. Give it no more than two decades and most likely one and I will wager a Swiss Gold Franc on the outcome.
Posted by dotti on 09/11/11 03:58 PM
You make a good point about the safe haven status of Switzerland having been tainted.
I would only add that I consider the start date a couple of years sooner--1911. But then, the start date was probably centuries earlier--if we only knew.
Posted by dotti on 09/11/11 03:54 PM
Ingo, with regard to the Suess quote: "They love to harmonize, centralize and bureaucratize anything that crosses their paths."
Would you say that what they cannot "harminize, centralize and bureaucratize", they would influence/destroy?
To me the "evidence"--if there is such a thing--of this "harmonizing", which could be viewed as a conspiracy of sorts--is the world system of banking. Worldwide the bankers are imposing terms on the politicians, who then impose those terms on the populace.
Whether or not one uses the term "conspiracy", there are powerful forces working together--and from what I have read here, most of those forces have some connection with the Rothschild banking elite.