John Mauldin had this to say about the historic Swiss move and ensuing chaos: “The (historic) Swiss (move), it was kind of like the (Roberto) Duran (vs) Sugar Ray Leonard fight: He (Duran) walked back to the corner and said, ‘No mas.’ He just couldn’t take any more pain. The European Court of Justice on Tuesday said, ‘OK, you (the ECB) really can do QE.’ They (the Swiss National Bank) get a back-channel phone call that says, ‘OK, we’re not going to do just 50 billion (euros) — it’s going to be open-ended because we are going to double-down.’
So they (the SNB) had the meeting on (that) Wednesday and realized, ‘We’re already down 60 billion francs — $70 billion — on this trade. Our balance sheet is now 80 percent of our national GDP.’ That would be like the U.S. Federal Reserve having a balance sheet of (roughly) $13 trillion — some horrendously big number. The goldbugs would be freaking out if our balance sheet (at the Fed) was that big….
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