- Switzerland and Britain are now at currency war!
by Ambrose Evans-Pritchard, http://www.telegraph.co.uk/
It seems you can’t debase your coinage these days even if you try. The Bank of England is straining every sinew to drive down sterling with quantitative easing, and what happens? The Swiss National Bank trumps Threadneedle Street with an outright blitz of Gilt purchases. They just print it, and buy.
The Swiss and UK central banks are effectively fighting a “low intensity” currency war against each other. It has come to this. Here is the offending chart from the IMF (Picture editor’s note: apologies for poor quality, unable to find better version):
- And this is what the Swiss did to Euroland a quarter earlier:
- One awaits with curiosity to see what will happen when Japan – fifteen times the size – kicks in with its own nuclear plans to drive down the yen, and Asia follows suit.