The Swiss National Bank finally gave up. For months it tried standing alone against all of the bad monetary policies being pursued by the ECB, the Federal Reserve, the Bank of England and indeed, nearly all of the central banks of the world, but it was a losing battle. So last week the Swiss National Bank succumbed to these pressures and pegged the Swiss franc to the euro.

Consequently, as the euro is debased, the Swiss franc will head south with it. The world’s last safe-haven national currency has finally disappeared, making the ownership of physical gold and silver all the more important.

One thing is clear in a world of fiat currency that begets hot-money. One country cannot stand alone pursuing prudent monetary policies, at least if it aims to be politically correct and avoid being ostracized from the clubby world of central banking. But this outcome is not a surprise. I wrote about it this past March and illustrated my point with charts showing gold’s hyperbolic trajectory<> <> in four currencies, including the Swiss franc. http://www.fgmr.com/golds-hyperbolic-trajectory.html

Remainder see:

http://www.kitco.com/ind/Turk/turk_sep192011.html