Hat Tip very dear friend of the Treehouse, Zurich Mike.
Switzerland is in a conundrum. More specifically, the Swiss National Bank is stuck betwixt two points that are also playing out in other stable western countries. Exports to the USA account for over ten percent of the Swiss manufacturing base.
The Trump tariffs are putting pressure on Switzerland to drop the value of their currency as an offset to retain competitive pricing. However, simultaneous to the tariffs, the Swiss Franc is being purchased by global investment groups and sovereign foreign countries as a safe harbor due to the stability of the currency, which is driving up the value of the franc.
The Swiss Franc is now at the highest point against the U.S dollar in decades. One franc is worth 1.21 dollars. This makes their exports cost even more. The Swiss government desperately needs to lower the value of their currency. The Swiss central bank has already dropped interest rates to 0.25% and is now contemplating negative interest rates as a result.
SWITZERLAND – […] That is why many are speculating on a reaction from the Swiss National Bank (SNB). SNB Director Martin Schlegel could weaken the currency by selling the Swiss franc against the dollar and euro in order to support the export-oriented economy.
But this could provoke a backlash from Trump if he perceives the SNB’s intervention as currency manipulation. Even during Trump’s first term in office, Switzerland was on the US list of suspected currency manipulators.
[…] Interest rate cuts in the key interest rate are considered a diplomatically safe measure to control the franc. It defines the interest rate at which commercial banks can borrow money from the SNB. “If the SNB is dissatisfied with the strong franc and remains limited in foreign exchange interventions, lower interest rates are the only option,” says Francesco Pesole of Bank ING.
Interest rates have already fallen sharply recently. It was only at the end of March that Schlegel lowered the key interest rate to 0.25 percent. The market currently expects a probability of around 80 percent that the key interest rate will fall to zero at the next meeting in June. Yields on short-term government bonds have already fallen into negative territory in recent days. (read more)
If interest rates go into negative territory, savers will be required to pay the bank for storing their money. “Until 2022, various Swiss banks required their customers to pay negative interest on their accounts.”
Meanwhile in other news from Europe, as the Chinese economy contracts, heavy industrial equipment -once again- becomes useless, the Europeans are worried that China will dump cranes and other industrial equipment into their economy.
Oh look, Fireworks!
🤣
I’m from the WSJ. These tariffs will never work in favor of America. And by the way PDJT is very unpopular in the polls -_-
Oh just stop your whinging, put on your horse blanket and go to the party. lol
And we’re supposed to consider you a valid opinion…much less source? What are you smoking🤪
I think it was meant to be sarcasm.
Oops. Fooled me.
Agreed. At least that’s how I took it.
Then they should learn how to post sarcasm: /s
Otherwise, they might be taken for a fool from the WSJ.
Really? Sort of like those Bud Lite commercials?
Is that you Jerome Powell?
Excessive tariffs and non-trade barriers around the world against America were not seemingly an issue beforehand for decades when the rest of the world did it. But now when America imposes a modest set of tariffs to level the playing field for more balanced trade, suddenly the world is ending? Tariffs are not intrinsically different when America does it.
I have been around long enough to recognize that a lot of polling in the media is straight up gaslighting, as was reporting when it came to President Trump for the last decade.
Naw, Jerome Hayden Powell or Mr. 6.6.6. ( 6 letters in each of his names ) has already set up the world economy for collapse in 2031-2034 Great Depression window.
Markets bottom around Fathers Day 2025… then hit huge macro peak Feb 2028, then drop for 8-12 months into early 2029, then final macro grande finale peak at Labor Day 2030… and then we see all JPOW’s dirty backdoor financing unwind as he set up the Great Depression window….
1st John 4:10
A crystal ball prediction.
I predict market will continue to go up and down like a seesaw.
No crystal ball.😏
Agreed till the tax cut bill is passed (market explodes up) or it is watered down or defeated (market goes sideways or down).
Bible Code stochastics…kinda cool, actually.
Polls have always been rigged! Forever!!
Remember that incredible poll that told us Iowa was going for Harris by 16 points? When did the media say Trump was winning? The only polls I look at are Ladbrooke’s.
lol
Haha..good one
“I’m from the WSJ.”
My condolences.
Good one. I like the humor.
Polls? Reminds me of Scott Bessent’s interview with Martha Raddish this weekend.
He doesn’t pay attention to Polls. He spent his entire 35-40 year career watching the data. The data says the American citizens’ buying does not indicate any fear or worry about a recession. That’s what the data shows.
He then said the “narrative of fear or negative polls” appears to be a creation of the media. The American citizens aren’t buying what the “fake news” media is saying. I guess they are too busy buying stuff to notice what the fake news is trying to sell.
Great reply!
If we had a realistic media those quotes from Scott Bessent would be the headlines in multiple newspapers and the lead story on multiple nightly network shows.
The fact they aren’t tells you all you need to know.
“Appears to be” is politetalk for “is.”
I’m from the NYT. Kamala would’ve made a better President!
🙂 In her dreams.
ROFLOL!!!
….who?
For South Africa or Cuba.
The wsj stopped telling the truth in the 70’s.
And i stopped reading it at about the same time.
Can you spell “bankrupt”. ?
Thanks for the laugh
ROFLOL!!!
Bravo…still laughing.
However, apparently Rand Paul is mouthing off, saying he has enough votes in the Senate to stop President Trump’s tariffs.
Not laughing at that.
WSJ EB losing it – see today’s comments on Trump`s first 100 days
Sarcasm right?
Meanwhile, tariffs brought 15 billion to the Treasury in April.
we don’t pay any attention to you people anymore. You dug your own grave now go take a nap in it.
BREAKING: President Trump is not running for reelection and doesn’t give a crap about poll numbers.
The WSJ went full Pravda years ago. I switched to Investors Business because they were reliable, trustworthy, and above all focused. The WSJ went the way of corporate media. Tariffs used to work just fine till the globalists used them to destroy American industry. remember NAFTA? How did that help America? Trump is so unpopular in the polls that the Demorats had to use a coup to get rid of Biden and then blew 2.5 billion on their brain dead replacement who lost in a landslide “poll” of the American people.
WSJ reliable? Your post demonstrates why it is a joke.
I find him very popular, but I don’t give a rat’s patootie for the wsj.
Never realized that so much attention has been paid to the Swiss Franc, great read thank you.
It is a win, win for the depositors. Not all being Swiss. lol
“………..a win, win for the depositors.”
And how much a win for the despots?
One in the same. lol
After the dollar, the Swiss Franc, the Euro, then the Yen are the next “storehouses of safety” for banks in doing international settlement, so the CHF (Swiss Franc) is the very important barometer to watch in international trade.
Anyone who holds the Euro is a fool. Its value is like a badly damaged Uboat. It is always slowly sinking in value. Europe’s economy is declining and will continue to do so in contrast to the far East.
And at negative rates, money has to exit a bank account and head to the market or private investment.
And markets go up
Unless it sits as cash for a season…..safely out of the system.
The Swiss franc is one of two currencies still backed by gold. The Swiss are not fools.
switzerland…
davvos
genevva
command and control centers for the
w
e
f
Do not forget the rest of the gang, also located in Switzerland:
ALL of the UN Executive Agencies (the only thing in NYC is the useless UN assembly).
The BIS (Bank for International Settlements) is an international financial institution which is owned by member central banks. Its primary goal is to foster international monetary and financial cooperation while serving as a bank for central banks.
NOTE: The WEF is NOT a decision making body. It is an Academic Institution that ALL parties vying for global dominance (i.e. G7, EU, US, BRICS, G20, et al) use as a source for policy references.
“The WEF is NOT a decision making body. It is an Academic Institution that ALL parties vying for global dominance (i.e. G7, EU, US, BRICS, G20, et al) use as a source for policy references.”
Think of the WEF as their version of the college frat house.
with lots of weirdos
I thought there was a resemblance between Claus and Blutarski (Belushi).
“The BIS (Bank for International Settlements) is an international financial institution which is owned by member central banks.”
I read something (Dean Henderson?) a month or two ago that the land the BIS is situated on is sovereign territory – similar to Vatican City & City of London.
Or DC which is a corporation.😳
A bank for central banks. Interesting.
Oh yes, the BIS is the head of the globalist hydra. It formally organized after the disastrous Versailles Treaty of WW1, in which the 500 year-old Westphalian empires were overthrown in four short years, replaced by the original New World Order of federal governments and oligarchical parliamentarian “democracy”, rather than the Christian monarchial order of God, King, and Country.
Interestingly, without going into all the historical detail, Geneva is where that genocidal madman and puppet of the banking powers, John Calvin, created Europe’s first totalitarian state.
He organized the 30 Years War, a war between Christians in which Europe lost a third of its population; he imposed a form of Christian Sharia, emphasized beating the devils (beating the “Hell”) out of children, and began the war on “witches”- that is, he felt all red-haired women with green eyes were witches to be exterminated.
Yes, I’m talking about the guy you were told just did bar-room level “philosophy” of predestination and the Elect. His history has been heavily sanitized; he was a young nobody with mysterious backing and seemingly unlimited funds.
Trillions at stake!
ETH in Zurich
Grok regarding Schwab & Cornell AA&P faculty at the ETH: “…Klaus Schwab, an engineering student from around 1960 to 1967, overlapped with Werner Seligmann (teaching 1959–1961) and Bernhard Hoesli (1959–1972), at ETH. The Cornell urban planning contingent—Seligmann, Rowe (visiting), Wells (briefly)—was active in the Hauptgebäude’s architecture circles. Could Schwab have literally crossed paths with them?…”
Colin Rowe’s Urban Design Studio at Cornell, under Burnham Kelly, with Nelson Rockefeller as NY Governor & a Cornell Trustee, planned, designed, & constructed Urban Renewal in cities across the US, and also globally in places like Baghdad & Berlin.
Claus, Seligmann, & others we’re at the ETH at the same time. Small world.
Grok discusses Claus Schwab’s ETH doctoral thesis:
“Der längerfristige Exportkredit als betriebswirtschaftliches Problem des Maschinenbaues”
(translated as “Long-term Export Credit as a Business Management Problem in Mechanical Engineering”)
https://x.com/i/grok/share/3le6dXnc6PTOyo9Mj4lUcFLhQ
“…The thesis explored the role of long-term export credits in the mechanical engineering sector, addressing how firms manage financial risks and operational challenges when exporting machinery to international markets. It analyzed export credit as a strategic tool for enhancing competitiveness in global trade.”…
(Heavy industry exports, 🤔.)
The Gnomes of Zürich are scrambling, and all of that sweaty scratching sounds like…
...President TRUMP is winning!
Given that cocoa prices are bizarre right now, thanks to Communist African dictators manipulating supply and prices so much that, the result is, cocoa farmers are cutting down their crops and not planting anything new.
Swiss chocolate will become so expensive that only the tip-top will buy it, but that would not be much of a market!
Like with eggs, eventually people will decide that chocolate is not absolutely essential for their lives.
You said, “Like with eggs, eventually people will decide that chocolate is not absolutely essential for their lives.”
You are joking, right?
Earth is the only known planet to have chocolate.
Ausonius: The standard 3.5-ounce chocolate bar now ways 2.85 ounces. It’s magic. Chocolate bars keep shrinking.
1984
“The Ministry of Plenty announces that the chocolate ration has been increased to 20 grams per week. However, Winston remembers the previous day’s announcement that the ration was being reduced from 30 grams to 20 grams.”
Bingo.
If its a snickers its ok.😉
If this keeps up, chocolate bars could soon be as elusive as gold bars in Fort Knox….
Well……..I guess if my favorite chocolate bar can go on a diet then so can I. **sigh**
Belgian is my favorite – memory of chocolate.
I’ve been buying cacao powder & making my own for a couple of years…
So I can still afford chocolate – and it’s more versatile.
Ausonius & I disagree – it’s an essential food group.
Like every other food item….only the price stays relatively the same. “They” think us rubes won’t notice….
prices continue rising
Easter chocolate is on 1/2 or 1/4 price right. I always buy chocolate after holidays. Don’t taste any different.
Years ago, Jewish neighbor, upon being humorously teased about missing out on all the chocolate bunny deliciousness on Easter Sunday responded laughingly: “Oh yeah, well I buy my chocolate bunnies on the Monday following, when they’re all on sale for 50% off!….so who’s the schmuck now?”
I remember when my father was in the grocery bz and we got it after Easter almost for free.
Complicated business
-_PDJT
I’m betting the coming free market economic “reset” we’re about to experience will work better for us than the contrived “reset” we got with the pandemic panic. How they gonna stop it this time?
Maybe they should buy US Treasuries.
FTA – “The EU executive, which conducted the investigation, said Chinese MAE producers had benefited from preferential financing, grants, state provision of inputs at below-market rates.” (Bolded words mine)
THIS is what Donald Trump and a VERY small handful of people (including Steve Bannon and Peter Navarro) have been saying for decades!! The Chinese Communist Party has benefitted from incredibly unfair trade practices, currency manipulations, and total lack of oversight or accountability for their labor and environmental practices, enabled and even encouraged by a global community and a United States Congress that have gotten RICH off of screwing hard-working, law abiding middle class families and the Main Street businesses that used to employ them, before all their jobs were shipped to China!
I have no doubt that President Trump and Secretary Bessent have already prepared for this possibility and have an appropriate response ready to go if SNB decides to FAFO! (Pardon my language but it just seems to fit the situation!)
Was the dirty word SNB or FAFO? 🤣
Touché!
I hate to say it, but Trump didn’t invent the tariff. The European Union has protected it’s interior market with ad hoc anti-dumping tariffs against China forever.
Exactly. Also from the article, they state:
“The extra duties on Chinese mobile access equipment (MAE) will range from 20.6% to 66.7%, the Commission said, as it sought to protect domestic producers in the EU market worth more than 1 billion euros ($1.14 billion) per year.”
Sounds so noble to “protect domestic producers” but when the USA imposes tariffs it’s apparently unfair, predatory, and upending global trade (rightfully so!)
As they say, we can’t hate the media enough but it sure is refreshing to see right through it all.
News flash…
10% APY on cash.
Sovereign Wealth
{Savings}
Disaster Relief
{Checking}
L8r Federal Reserve.
CAPITALISM :
The economic condition wherein The People own the “capital” {public Monies}…
And
The Government owns the “ism”.
In God We Trust
{All others pay cash}
Trust God
Fear not
Unless, of course, YOU want to remain indentured servants to a…
Corrupt {RICO}, money laundering, currency manipulating {inflation}, enemy aiding and abetting {Chyna} spirit of antichrist criminal enterprise known as the…
Federal Reserve Bank.
Personality does not factor in mathematics.
Exhibit A
We The People
Exhibit B
Government
Exhibit C
Federal Reserve Bank
This was an AB conversation with a settlement date of 02APR2025.
Always Trust God.
Well, Martin Schlegel can join Martina Hingis in being a Swiss Miss.
The EU Central Bank has lowered the interest rate in Europe seven times in the past year already. Powell lowered the interest rate once right before the election to help Kamala and hasn’t lowered it since President Trump won the election.
Sit back and watch the Master at work. He didn’t call out Mr. “Always too late” Powell for no reason. There’s always a reason.
Watch and wait. It’s always spectacular. Always.
not the headiest comment of the day, for sure, but kudos X 1000 for “betwixt” !
👍🏻 😂 👍🏻
It’s fun watching people complain about how the prices of their Chinese-made stuff will increase, while failing to realize that all the stuff that comes from China used to be made in the USA and benefits from special trade concessions. US consumers have been funding the Chinese Communist Party for decades, while wealth has been sucked out of the US economy.
Plus, the US Military (largely, the Navy), has been protecting international sea lanes to secure Chinese ships carrying Chinese cargo. The Chinese never paid for any of this. Instead, they take our dollars and build more ships, and now have a navy that now outsizes the US fleet, and ship production capacity that far outstrips the US.
I don’t disagree, and all I ask is for some infrastructure to get things up and running. It won’t be pretty when the TV sets of the zombies breakdown, and the parts to fix them are in China!
Arent tv’s disposables now? I mean are there even any tv repair shops anymore?
I’ll bet on the return of this industry.
One other interesting note … Switzerland is NOT a member of the EU.
Switzerland is the “neutral” hub where ALL those vying for dominance within the Global Corporation are located, to include the Executive Offices of the UN they share … the bankers that support the Global Corporation (the BIS) … the Board of Directors (The Financial Puppet Masters) at Davvos.
The WEF is an Academic Muse they all share and use for policy concepts.
When I was supporting International Business for my employer, 15 years ago, the Swiss Franc was even considered a strong currency for use in transacting Contracts due to bank laws as well as the presence of the BIS (in Basel) where all the major National Central banks intersect.
👉Zurich Mike, one of the commenters at another site years ago that pointed 👉 👈 👇
the way to the CTH and Sundance and all the commenters here on the Treehouse branches🌳 🏡.👈
Yes, Zurich Mike, I believe directed me here via Lucianne, IIRC?
If not there, it was here I met him amongst the other wonderful OG folks during the Baby Tray days.
Hi Zurich Mike and partner. Hope you both are thriving and living your best life. I see you occasionally pop in.
Thanks for this news.
Peace be with you.
🙏
👍👌Indeed it was Lucianne
And all they have to do is drop their tariffs. Silly Europeans
Switzerland has a unique problem … it is NOT part of the EU and is an international intersection for central banks from across the globe. If the US and Switzerland managed to arrive at a bilateral agreement … the US would be in a very strong position from a monetary point of view.
Switzerland’s Primary industry is BANKING and being a Neutral Location for international banking to be conducted.
They can’t, their economies depend upon American tax payers. How will they pay for all their illegal immigrants, cheap medication, healthcare, and education, if they don’t charge us?
Won’t this also cause all the Chinese secret Swiss Bank accounts to start depreciating too?
The squeeze is on. China will pop like a red headed pimple
Shipping from China is dropping faster than Slick Willie’s pants in a mobile home park. How long can China continue while their manufacturing dries up and people go unemployed. And today I heard they are not buying food from American farmers. How long can the leadership of China last while their people go without work and food? Is this the beginning of XI’s downfall. Will China save face and dump XI?
Gordon Chang believes regime change in China is afoot. I believe Sundance has first dibs on this but all the same. Pooh go Poooo
All part of PJT America first and sticking it to China.
https://www.foxbusiness.com/media/china-exhibiting-end-of-regime-conduct-expert-warns-perplexing-behavior
So funny.😂
ROFLOL!!! I almost woke my husband up laughing about Slick Willy and the mobile home park!!!!
Read what Gordon Chang has to say, about Xi and China.
Says they are behaving irrationally snd irradicakly, and he thinks Xi is about to get the boot.
“The European Commission said on Monday it had imposed duties of up to 66.7% on imports of Chinese machines that lift construction workers after concluding that the producers were benefiting from unfair subsidies and selling at artificially low prices.”
Ohhhh!, the Europeans exclaim with surprise……………….So your telling us that tariffs can be a good thing?
The really comical part of this situation is that the equipment being hit by EU Tariffs was made by EU Companies located in China or EU Built Equipment sent to China that is being dumped on the market for resale.
By the way some of those Chinese EV’s come from a company owned by Elon Musk as well as come from Companies partnered with an EU Auto Maker.
Where’s pocahontas going to hide all of her NGO proceeds now?
It occurs to me that if PDJT47 wants to control interest rates better, he could revive PJFKs famous EO, take off PLBJs signature rescinding it, and CLOSE THE FED.
Then Sec. Besset would be responsible for mining the necessary amount of (real) dollars, and also setting interest rates.
We also might get a dollar with a small gold thread, and/or backed by a basket of commodities such as oil, minerals, or even Land!
Not so sure an EO is even needed.
The Fed technically acts as an agent and broker for the US Treasury.
Just direct the Secretary of the Treasury to end the contracted arrangement.
EXACTLY, Big Al Brown, the Backed Dollar is exactly what Lutnick is proposing.
1000 kudos to Sundance for giving us the heads up on Lutnick by posting his videos.
I’ve seen this vein pursued by numerous financial podcasters now; the original idea was proposed by the legendary Martin Armstrong and has been reworked to the Lutnick cohort’s benefit.
The Federal Reserve Act of 1913 requires an act of Congress to close it, doesn’t it?
Where is my hanky?
Holy Swiss cheese Batman!
Sadly, it’s also causing serious problems for small US businesses, particularly tech ones, that rely on Chinesium, and, in order to get replacement manufacturers, must charge many times more to their customers….who don’t want to pay for the increased price. Louis Rossman talks about it here:
It’ll take time to bring those manufacturers back to the USA.
MAGA New World Order!
Everything Swiss is corrupt.
I really feel bad for the people that don’t know about the information that Sundance promulgates and posts here. having realized many years ago that I’m not the smartest guy in the woodshed, I take it upon myself to seek out people much smarter than I am to help me understand. when it comes to explaining what’s going on with President Trump and our government no one does it better than Sundance.
Factor into all this, Gordon Changs assessment that China is exhibiting behaviors indicating Xi may be on the way out.
Chyna and the EU, each with slightly different methods, are the biggest trade thieves, are the ones where regime change is most desirable,..and are at the back of the line…
I genuinely love reading about Trumps 4D economic chess maneuvers. The big fish in the pond is the US market…he understands that and for once we have someone who is willing to leverage our economic might for the benefit of the people not just himself. What a time to be alive.