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| Has Switzerland
Sold Out to - Washington, London, & Wall Street? |
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| It goes
without saying that it has been a tough couple of years for Switzerland
and the franc. The Swiss franc has only looked better during the past year
because of the collapse of the NASD. The technology stock mania and
subsequent collapse brought the NASD down from over 5000 to its current
level between 1500 and 1800. I believe the NASD pullback is about
over but there still may be substantial downside risk in many of the New
York Stock Exchange stocks. |
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| What Happened
to Switzerland & the Swiss franc? |
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1.
Switzerland Ended Gold Reserve Requirement Backing Swiss Franc. Switzerland
voted to do away with the gold reserve requirement backing their currency.
I didn't at the time and continue to feel that this was not a major factor
in the strength of the Swiss franc for two reasons. (1)Gold has been weak
and trending lower in value for almost two decades and (2)the value of
Switzerland's currency is much more determined by the policies and targeting
by the Swiss central bank than outside market forces.
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2.
The European Union's Euro was Created. The Euro was expected
to be stronger than the dollar from the beginning and it promptly feel
from 1.18 to the dollar down to near 80 cents. The Euro was weak
compared to the dollar because it was pegged too high in the beginning
and because of the overwhelming strength of the dollar on the back of the
late ‘90's US bull market in stocks and NASD mania. This extraordinary
strength of the dollar would have made the Swiss franc fall in comparison
in either case but was made far worse with the Swiss National Banks’ (their
central bank) decision to peg the Swiss franc to the new Euro currency.
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| 3. The
Swiss Central Bank "Unofficially" Linked the Value of the Swiss Franc to
the Euro. Remember, Swiss central bankers are as corrupt as their US
counterparts in the Federal Reserve system. The powerful political and
financial elites of the US, Great Britain, and Germany were joined by the
same elites in Switzerland, wanting Switzerland to join the EU and surrender
its currency. Due to Switzerland's historical political rights of
referendum and initiative they knew they had no chance to impose this on
the voters so they thwarted the will of the Swiss electorate by pegging
the currency value of the Swiss franc to the Euro anyway. |
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| 4. The
Once Independent Swiss National Bank is Now Just Another Central Bank Marching
Under the Lead of the US Federal Reserve. |
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| As we all
know there has been an ongoing war against gold, hard currencies and financial
privacy by the major western democracies led by Washington during the last
decade of the 20th century. The Swiss central bank is now on call,
as are the other European central banks, to suddenly announce gold sales
if its value rises above central banker target prices or to raise or lower
interest rates if required for market and currency stability. Stability
doesn't necessarily mean safety for investors but for the political and
financial establishments that control much of the world's commerce and
investment markets. |
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| 5. Swiss
Financial Privacy & Banking Confidentiality Is Weakening Along With
Every Other Nation in the World. Washington and London have been leaning
on and threatening every independent and dependent safe haven in the world
in order to destroy every last shred of personal, economic and financial
privacy. The horrible terrorist attack on New York on September 11
has been used by the Washington politicians and the financial establishment
as the pretext to “blitzkrieg” the new regulations and legislation that
will effectively end most, if not all, offshore privacy. While many
pro-liberty groups and civil libertarians, like the Sovereign Society and
Congressman Ron Paul, are speaking out against this final nail into the
coffin of financial privacy it will not matter. America is in the
grip of a war hysteria, terrorist assault and related financial crisis.
It is in times like this that civil liberties go out the window and there
isn't a thing we can do about it. Yes, much of the Moslem hatred for America
is a result of our foreign policy but we have been attacked and thousands
of innocent civilians killed therefore we must respond. |
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6.
The Swiss Parliament Vote To Join the United Nations & The Bankruptcy
of Swiss Air. The Parliament vote is not a done deal, due again to
the Swiss citizens rights to initiative and referendum, but this does worry
me from a political viewpoint. The most neutral and non-aligned nation
in the world joining the cesspool of the United Nations? And where
were the time honored Swiss traits of conservative management and avoidance
of debt that allowed Swiss Air to build up such a mountain of debt that
it has been forced to file for bankruptcy?
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After
reading these 6 points above do you find yourself wondering . . . .
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Has
Switzerland Sold Out? No. But their politicians, central bankers
and much of the business establishment have. I believe their rationale
is to compete in the global export and financial markets of the 21st century;
they must join with two of the three "so called super states" of the world
- China, the European Union and the United States. Is this the right course
of action? I don't think so.
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Will
the independent, freedom-loving Swiss people go along with this new “one
world” path for Switzerland and will it work to the benefit of Switzerland?
To be very frank, this Swiss establishment sell-out of much that has made
Switzerland the envy of the world (except for other national political
leaders and financial competitors) and home to 35% of the world's private
wealth according to many experts, certainly hasn't worked to date.
All one has to do is look at the carnage of the bankruptcy of Swiss Air,
the weak Swiss currency and the many merged Swiss banks to see that their
attempt to emulate those in the European Union and the United States has
failed to date.
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Will
the Swiss people continue to put up with this sell out? Not if their
economy continues to falter. More importantly, unlike here in the United
States, there are politicians and a political party that still stands for
putting Switzerland and her citizens first over the global elite's.
This is the Swiss Peoples Party headed by Christoph Blocher.
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| What Does
This Mean For Switzerland's Future as a Financial Safe Haven & the
Swiss Franc? |
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First,
I must admit that I'm generally bullish on both the Swiss Franc and the
Euro over the next 12-36 months. The US dollar has obviously peaked
and the Swiss Franc created a double bottom in December of ‘00 and July
of ‘01 at around 55 cents to the dollar. It appreciated to 63 cents just
after the terrorist attack on New York City and the Pentagon and is now
around 60 cents. On the down side, while both the Euro and Swiss
Franc have appreciated due to today's perilous situation in the US, it
is still nothing to write home about.
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| Although I
believe Switzerland's position as the world's leading safe haven for financial
wealth is battered, it is still secure for US investors when compared to
here in the US or the rest of the world. They still have a strong
layer of asset protection, a legal system that protects and defends investor
wealth instead of attacking and confiscating it. The Swiss franc and the
Euro have bottomed and likely will appreciate verses the dollar, much will
depend on the US war situation. |
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The
point to keep in mind is that Switzerland’s investment management services
are still, in my opinion, the most advanced and talented in Europe.
Switzerland is one of my preferred locations to take advantage of, what
I believe, may well be a “European Renaissance” and bull market
in European equities in the coming decade.
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| If You
Are Already Invested in Swiss Franc Denominated Investments in a US Product
(the Swiss Franc Variable Annuity Product) or Offshore in an Annuity or
Swiss Bank Account - How Do You Keep Up With What's Going On? |
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The
Internet - Our Swiss financial news site SwissGnomes.com will
update you on a regular basis concerning news about Switzerland, the Swiss
franc and Swiss privacy. The site includes currency links where you can
chart or follow the Swiss Franc on a daily basis. I will write, provide
links and post articles, both negative and favorable, to Switzerland from
the unique view of a non-Swiss, who is still in love with the nation of
Switzerland, but tempered by 20 years of experience in Swiss investments
and with the Swiss people to know that the country is beautiful, the people
love freedom but that politicians, even in Switzerland, will always be
politicians first and statesmen second. Other news sites to bookmark
can be found at the end of this article.
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E-Mail
Communications – Feel free to e-mail me with any questions and concerns
you may have. I also broadcast an email newsletter Update: Europe
containing financial news regarding Switzerland and other European countries.
Call or e-mail me if you would like to receive these timely updates.
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Toll-Free
Line – Please feel free to call me at 1-888-560-8779 if you have any
questions concerning the Swiss franc, the US Swiss Franc denominated variable
annuity product and currency trends.
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| Where are
the Profit Opportunities in the First Decade of the 21st Century? |
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I
am currently writing a new special report entitled: "The Coming European
Renaissance”. I believe the economic and military costs of the
current war on terrorism may cause the economy of the US and our equity
markets to languish. Our nation will flounder under the clouds of
a no-win war against terrorism, too much public and private debt and our
growing rift with the one billion citizens of the Moslem world over our
foreign policy. What will this shift in power and economy mean for
your future investment portfolio profits, financial privacy and asset protection?
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Europe
will, of course, give us their total support but will commit few troops
and even less in monetary contributions while we suffer the costs and homeland
attacks that will almost certainly continue to occur in our long-term war
against terrorism. They will not be openly involved and will benefit
with a free ride to prosperity and profits while we shoulder the burden
and risks resulting from our foreign policy. Western Europe and much of
the formerly iron-curtained East will get an opportunity to prosper without
the old Soviet threat on their eastern borders. This could translate into
growth, prosperity, stock market profits and appreciation of the Euro and
Swiss Franc in a comparable way to the Japanese prosperity of the 1970's
and early 80's. Remember, this was when Japan had a free defense
ride in the cold war from the US military.
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To
summarize, I believe Europe is poised for new growth and prosperity because
they have left the costs and problems of an empire behind after two world
wars. We, unfortunately, have picked up that burden and we will pay the
price. There are many ways to participate in the European Renaissance,
which will be included in The Coming European Renaissance. Feel
free to call in advance to request a print copy of the report or if you
would like to discuss the report or European investments. The report
will also be available as a download from my websites.
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| As always,
if you have an interest in Switzerland, Swiss investment management services,
the Swiss franc, or have previously invested with Swiss banks or other
Swiss products and have any questions please feel free to call. |
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