Switzerland tries to devalue again

They already did it once about three months ago, but it looks like destroying a currency is the favorite game in town with Mervyn King, Ben Bernanke and the anonymous incompetents chairing the SNB on the podium. At that time I said:

This is the reason why I never bought Swiss Francs as a safe haven, because I knew their Central Bankers are as mad as Ben Bernanke and Mervyn King. For those who still believe the Swiss Franc is better than the USD or the GBP, I suggest you read Gold Wars, The Battle Against Sound Currencies as seen from the Swiss Perspective by Ferdinand Lips. It's a fantastic book.

One must understand that these kind of intervention are destroying the value of the currency, stealing from their people their purchasing power and leading to nothing productive. At least people will start to understand that the Swiss Franc is not a safe haven anymore and only Gold and precious metals are safe in these times. Please read Ferdinand Lips' book - (may he R.I.P). Here's the ugly result of the SNB's intervention:

June 25 (Bloomberg) -- The Swiss National Bank is attempting to put a “line in the sand” with its first intervention in the foreign-exchange market in more than a decade after previous attempts to weaken the franc failed.

Currency traders said the Zurich-based central bank intervened twice yesterday, driving the franc down against more than 150 currencies tracked by Bloomberg. It fell the most in three months versus the dollar and euro. The franc extended declines today.

While policy makers mainly sought to weaken the franc versus the euro, the latest round of intervention may have included the dollar, said Marc Chandler, the global head of currency strategy at Brown Brothers Harriman & Co. in New York, describing the moves as a new “aggressiveness’ on the part of policy makers. “It looks like the SNB changed its tactics,” he said.

The franc dropped as much as 2.4 percent to 1.5380 versus the euro yesterday and 3.2 percent against the dollar to 1.1023, the biggest declines since the central bank said on March 12 it would halt the currency’s appreciation to avoid a “dramatic deterioration” in the economy.

The intervention surprised traders, who tested the central bank’s resolve by pushing up the franc on speculation policy makers wouldn’t try to influence exchange rates unless it strengthened beyond 1.50 per euro, said Brian Kim, a currency strategist in Stamford, Connecticut, at UBS AG. The franc will trade at 1.52 to the euro in three months, he said.

Most of the Swiss currency’s declines yesterday occurred in two periods of less than an hour each.

Switzerland’s central bank “must retain its credibility,” said Ursina Kubli, an economist at Bank Sarasin in Zurich. “I have no doubts that they have the willpower, determination and independence to push this through.”