The Big Reset: The US And Switzerland?
from Sprout Money The fact that the Swiss Central Bank recently decided to decouple from the euro, was a surprise to say the least. In a time where everyone is trying to weaken their currency, Switzerland and the US are seemingly aiming for the opposite. Are both countries up to something? Is there going to be some sort of a Big Reset? The currency wars have been going on for years, but in these past few months things really started heating up. Central banks across the world are trying to devalue their currency to stimulate export into their respective countries. Switzerland and the US do not fit that description. The dollar has been on the rise since the summer and it does not look like it is going to stop. The Swiss Franc surged this week against all other currencies and even by about 30% versus the euro at a given point. There May Be A Strategy Behind The Big Reset We all know that the current monetary system is broken (which is why we invest in gold). We have changed monetary systems 3 times already in the last 100 years across the globe so it is not that big of an exception. In a new system they will probably start comparing so you can’t really do much with a weak currency. The International Monetary Fund is asking for more explanation from the Swiss. In general the IMF is considered to be a US stronghold, but there is a lot of political and monetary pressure from China to take up the yuan in the so-called Special Drawing Rights. This would make the US dollar a lot less influential. It is possible that the US wants to underline its position with a strong currency and it could be that the Swiss understood the message. The race for the weakest currency might be a race for the weakest link, because a strong economy does not need a weak currency and a strong currency gives you a great position when new monetary systems are negotiated – the Big Reset is what they call it.