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The financial markets again…

So while the financial markets have calmed down since August 2010 when the
swiss national bank has taken action to support the Euro’s stability by putting
the reference exchange value to 1.20 CHF, it seems that new black clouds are
coming ahead to us. The dollar is going to crack the 90Rp.-barrier…

But not only the dollar has reached new lows. Other currencies have also lost in value… some dramatically…

This is the current chart as of now (The japanese intraday graph has been selected):

Interesting to see that especially the japanese currency is loosing in value against the swiss franc dramatically. Have a look at the yen (and the other currencies) just 3 weeks ago:

The Euro isn’t moving at all. it’s roughly 1.2050 CHF

The Dollar has lost 2Rp. since then. not much but still a remarkable amount!

The pound has lost approx 3Rp. not that much either…

The YEN however has lost almost 10Rp. That’s quite a lot!

Note: The spikes (or low peaks) are transmission errors from the currency site, my VBA addon is getting the values of. Sorry for the inconvenience but my VBA macro is not a realtime analyzing tool. And when it does not get values, then it takes the initial value of the beginning of the day (Usually the last known intraday-value of the day before)

So what’s up with Japan with their currency loosing so much value whilst others are like glue sticking to a certain level? I guess, the Tsunami catastrophy has still deep impact on the japanese finance system. With Fukushima being wasting lots of culturable land, Japan has a big loss of financial power. Even the computer industry has had severe trouble with the tsunami where most of the electric manufacturers have lost their production facilities. Let alone the shaling of the earthquake that can waste a whole lot production of semiconductors. Structures, only 30nm in size don’t like much shaking nowadays. Maybe there will be machines that are shockproof and will still be able to imprint the circuits at such small structure size even with the gound shaking at a magnitude of 5… but I doubt them to appear within the next 3-5 years.

However it’s all speculation what upsets the japanese finance market. Of course it starts to worry again as the big question is: Will the SNB again have to intervent in order not to grow too strong against the currencies?

At least the defense of the 1.20 baseline of the Euro to the Franc seems to work but on the other hand you don’t know how much cash the SNB had to put in hands to fulfil this goal.

Rumors say that the foreign currency inventory has been risen to a whopping 265 billion Swiss francs (from 135 billion in june 2010 when the financial crisis had almost reached it’s heights)

Quite impressive for a country like Switzerland to hold foreign currencies in the countervalue of their whole annual debt (which is actually decreasing)

Staatsverschuldung Schweiz

As this post is written, the debt is 207.617.502.227 CHF (207.6 billion CHF)
The daily debt is decreasing by a whopping 8.6 million CHF

If these numbers are accurate and nothing interrupts the debt decreasement, Switzerland will be free of debt in 24026 days or 65 years… but who can be sure?

If we have a look on the rating busters, namely the USA:

Staatsverschuldung USA

The actual value is 15.460.418.821.671 USD (13.9 trillion(!) CHF)
The daily debt is increasing by an incredible 4 billion(!) USD each day (3.6 billion(!) CHF)

So each 50 days, the USA are increasing their debt by the amount of the total debt of Switzerland.

If the USA don’t decrease their debt increase rate, they’ll hit the 20 billion line in approx. 1200 days…

Frightening, I say!

But who knows, what will happen within 3 years… Maybe it’s a big twist of fate that will change the world order dramatically…

February 24, 2012 Netspark - 1594 posts - Member since: May 9th, 2011 No Comments »

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