Switzerland puts everything into the pot and calls

When things get really bad in Europe, people rush to Switzerland for refuge from the storm (Cue Sound of Music music).    The past few months Euros have been pouring into Switzerland to hold, but they don’t want them.    The exchange rate keeps going up, making Switzerland too expensive to visit and their products too expensive to buy.   This has put Switzerland on the verge of a major recession.

This week, the Swiss decided that this is the end game.    10 year Greek Debt is over 18% today – the Swiss are talking out loud that a collapse of the Euro would bring a global banking collapse and widespread violence in Europe.  So they have decided to “peg” the Swiss Franc at 1.20 Euros and will buy up an infinite number of Euros to keep Europe from collapsing.

So what happens when Switzerland ends up owing a few trillion euros and the euro keeps falling apart and the European Central Bank keeps printing more Euros to prop up Greece, Spain, Portugal, Italy?

This thing has two main paths – either Europe gets its act together and the Swiss Franc returns to normal levels (and the Swiss make a huge profit buying back their Francs with stronger Euros) – or the Swiss Franc ends up becoming the defacto currency of Europe – and then Switzerland will tell Greece (and friends) what they must do and the Swiss become the defacto rulers of Europe.

Or the Swiss fail – and Europe goes down and takes Switzerland with them (very likely).   Every able bodied adult in Switzerland owns a government issued machine gun.   The violence won’t be happening there, and the country still has borders, not being part of the EU.

The locusts are about to descend on Europe.   The Europeans tried to steal Qadaffi’s money to save their banking system – he is going to have the last laugh as they stare at their vaults of worthless paper money and the cities of Europe burning (even if Gadhaffi is laughing posthumously).