02/13/2015 - Financial Repression: Swiss National Bank Hints at Capital Controls
Zero Hedge reports from news sources that the Swiss central bank may be considering & is now hinting at implementing capital controls – one of the pillars of financial repression .. this would be an attempt by the government to restrict capital flows causing unwanted effects in the Swiss financial system, such as a strengthening currency .. “The question becomes who imposes capital controls first: Greece, where the specter of whoelsale bank insolvency is now raging across the nation, and where a capital lockout may well be imminent, or Switzerland, which knows that the moment Greece is pushed too far and a Grexit is perceived inevitable, is the moment it will be flooded with a tsunami of Euros desperate to find safe haven in a new, Swiss Franc denomination, somewhere deep in the vaults under the Swiss Alps. A tsunami which would crush SNB credibility all over again, and when capital controls will also become inevitable .. Perhaps the best way to preserve some of said credibility, especially if it is already borderline non-existent, is to frontrun capital controls tomorrow, by imposing them today.”
