No longer. Swiss Franc Collapses 7% - Swiss National Bank to Fix CHF to EUR and Debase Currency.
[...] the Swiss National Bank has decided to fix the country's exchange rate at 1.20 Swiss francs per euro. The SNB indicated it would buy an unlimited amount of euros regardless of the risk to maintain that value.We've discussed global competitive devaluation here for years. The idea is that as the U.S. and Europe debase their currencies to try to prop up their bad banks, other countries will devalue as well in order to keep their export and labor markets competitive. No country can afford to have the only sound currency in a Zimbabwe Ben world. Not even Switzerland.
[...] The SNB said in a statement that it "is prepared to buy foreign currency in unlimited quantities."
The SNB has once again clearly indicated that the so called safe haven currency that is the Swiss franc is set to be debased alongside the dollar, the euro, the pound and all fiat currencies.
We've recommended positions in Australian and Canadian dollars in the past. While these currencies are healthier than Bernanke Bucks (and have performed well since our recommendations), they are not immune to the forces of Global Competitive Devaluation. Get thee to a gold dealer.