The Euro dropped from 1.20 to .85 against the Swiss Franc last night. That was nearly a 30 percent move overnight! It’s now down to 1.16 against the US Dollar. This is the result of the Swiss central bank giving up its attempt to peg the Franc at 1.20.

These wild currency swings are great if you can time them correctly, but it’s also a good way to lose your shirt. As usual, I was too early and missed out on the big move. Be careful out there.

This kind of monetary volatility is a strong indicator that deflation is defeating the central banks. They simply can’t print enough borrowers.