08/29/2017 - Yra Harris: The Exit From QE Programs Will Be Far More Difficult Than Central Bank Models Have Predicted
“The SWISS FRANC has certainly been involved in currency intervention as it has increased its foreign reserves over the last seven years from roughly 100 billion Swiss to a now 715 billion, which most of the accumulation having occurred over the last three years.
My argument has been and continues–as the SNB PRINTS BILLIONS of SWISS FRANC to sell in order to prevent the dramatically rising I WONDER WHAT ENTITIES HAVE BEEN ACCUMULATING SO MANY FRANCS DEFYING THE WILL OF THE SNB. Yes, the SNB have performed the greatest alchemy in financial history as it exchanges newly printed fiat currency for real corporate assets (i.e. APPLE STOCK.)
At a time when the SNB has actually managed to weaken the Swiss franc versus the EURO SNB President Thomas Jordan OUGHT to be buying back some of the francs and selling its EUROS. Unwinding its massive foreign reserve portfolio. But as Peter Boockvar discussed in an FRA PODCAST, the SNB is trapped because any hint of SNB buying of Swiss francs would lead to a sizable rally. The EXIT from QE programs will be far more difficult than their beloved models have predicted.”
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