Currency wars? Switzerland devalues its franc

I found an interesting piece on the internet that concerns a sudden and sharp drop in the price of gold and silver.


It turns out that this coincided with the Swiss central bank announcing a limit of 1.20 francs to the euro, reportedly to keep the Swiss franc strength from hurting their exports, and that they are "prepared to buy foreign currency in unlimited quantities" to do so.


The Swiss franc has been one of the currencies of last resort for people trying to protect their money from the inflation being caused by "quantitative easing"


This has pushed the Swiss franc to new highs against other currencies hurting their economy.


This news should have been headlines as this basically changes the game but appeared only as a small note in the financial press.  Essentially the Swiss have abandoned their floating exchange rate and devalued their currency by 8 %.


This may be introducing a new twist to "currency wars" that we were talked about earlier in the year.


I can recommend this video from You Tube where you can follow the action - how there is a sudden drop in the prices of gold and silver coinciding with the Swiss bank action and how people in the banking industry were able to make massive profits in the space of minutes.

For the article on the devaluation of the Swiss franc GO HERE