In the most ironic story of the day, the company that makes the paper that Swiss banknotes are printed on was just bailed out by the money-printing, stock-purchasing, plunge-protecting, savior-of-global equities...Swiss National Bank.
While The SNB has a long and checkered history of buying shares in companies... as we have detailed numerous times, it is no stranger to pumping money into companies all over the world...
Including Apple, Alphabet, and Microsoft...
But, as Reuters reports, this is its first acquisition in decades.
The central bank said on Thursday it was purchasing a 90 percent stake in Landqart AG after the company - which makes the polymer material used in new 10-franc notes - got into financial difficulties.
The Swiss National Bank certainly has the 'currency' to do the bailout - its share price is up over 250% in the last 2 years...
Buying the company was the best solution to avoid interruptions in the production of the Durasafe paper, described by SNB Chairman Thomas Jordan as “integral” to the safety of new notes.
“In case the Swiss National Bank was not ready to .. buy the company we would have had the risk of liquidation of the company, that would have been orderly or less orderly,” Jordan told a press conference.
“The risk would have been an interruption of the production of Durasafe which (would) be very problematic for our bank note issuance that takes place at this moment.”
The deal came about after an overseas customer unexpectedly cancelled an order with Landqart, which employs 260 people, leading to a big drop in sales and cash flow problems. The company reduced workers’ hours to deal with the crisis, which the SNB said posed a “direct and existential threat” to Landqart’s survival.
The SNB said Landqart would be provided with enough funds to ensure its survival, with between 5 and 15 million francs earmarked for the project.
“As long as the public wants to have bank notes, we will provide them with bank notes,” he said.
“As long as this is the case we have the ambition to provide state of the art and very safe bank notes.”
Does anyone else see the irony that in a world that is 'printing money' at the fastest rate in its history, one of the biggest manipulators of markets via its balance sheet is forced to bail out it money-manufacturer...
Or is this a symptom of the global war on cash?
Still would rather hold CHF's than USD's
My money is still shiney, as of this morning.
Quantitative Tightening's first casualty -- the suppliers for paper for bank notes
hey! lets do it again then!
I guess they didn't make enough money.
I don't know whether to get long Heidelberger Druckmaschinen calls or puts.
Probably buy zee straddles, ja?.
Print money to buy stocks, real estate and debt.
Fiat backed by nothing elevates assets.
And sorry but did he say this is the MOST IRONIC story of the day? There is stiff competition for that spot. And the day has just begun.
Exactly, exactly.
Exactly...gold and silver never need to be printed!
EXACTLY...!!!
I can not see anything but gold surviving!
But be that as it may.
I think this is the important bit:
The deal came about after an overseas customer unexpectedly cancelled an order with Landqart, which employs 260 people, leading to a big drop in sales and cash flow problems. The company reduced workers’ hours to deal with the crisis, which the SNB said posed a “direct and existential threat” to Landqart’s survival.
Who is the overseas cutomer and why did they cancel??
Bitcoin, slowing circulation of existing cash, lack of demand, economic stagnation??????????
Who, what, where, why????
Who what where why? Good questions.
The commons are part of inelastic markets. Money is part of the commons. Ergo, it is reasonable for government insure supply of paper for notes.
Government must either own or regulate inelastic markets. In the case of money paper, those who receive it, are likely heavily vetted. So, the who what where why would be another government, probably a small one, that doesn't want to bother with making special paper.
Over 97% of money supply is bank credit created upon hypothecation. That is, when YOU make a private debt at a bank, or when a government makes a public debt, then new bank money is created.
Cash in the form of paper notes NO LONGER IS BASE CURRENCY. Cash fluxes off the ledger, decrementing banker ledger - and in reverse, when cash is deposited it increases the ledger. In other words, the identity of paper cash is virtually the same as bank credit.
Your cash, stored at a bank, is a liability to the banker and an asset to you.
Venezuela.
They couldn't afford the 20 tons of paper.
It's all paper FIAT and the Swiss Franc is not backed by men with guns. Most of Switzerland's gold is rehypothecated to the moon and back, with multiple ETF claims on each ounce. The entire scam is going to come crashing down. Only crypto going full retard will keep the game going a bit longer and deep down us anti-Centra Bankers know history is not on our side. The money-changers corrupt the political decision-makers and the public follow the politicians.
What will soccer mom and accountant dad chose to use out of share convenience? What will nan use? What will uncle Bob use? They are going to use anything .gov officially sanctions. All of it pre-mined, with every 2-Bob politician lined up endorsing it and all the Jewish owned media proclaiming "It's unAmerican not to use it" Anybody with half a brain knows the world will go FULL crypto within the next decade. Right now it's about backing, or waiting to back the crypto's you think will win.
I'd still take Dead Presidents over some gay looking Swiss paper
Talk about CYA ... I'm a little surprised that they aren't going to force a digital currency on the masses.
Why don't they just run the presses a couple of hours OT? Reuse some of those serial numbers.
no need to worry about debt as our Feral Preserve Bunk and other central banks can print enough new money to pay off all old debts. It's so easy.
It ain't easy keeping up with central bank printers.
Unbelievable ...... But I believe it ........ like many of other things I never imagined.
I thought the Swiss government was flushing them down the toilet (http://www.zerohedge.com/news/2017-10-12/swiss-flush-3-million-gold-and-...) to a BTC mining server in Ft Meade Maryland?...
Conjuring 'money' to print 'money'...
You just can't make this $#!+ up.
We are entering the Star Trek of finance: Going where no system of economics has gone before.
New paradigm, gold, silver, platinum are worthless relics, buy bitcoin.
Make-believe is now real and what is real is not real anymore. We must be all on drugs.
Comedy gold.
Especially so from a country not renowned for having a sense of humour.
When you red line the printing presses the way the SNB has been, it costs big money when then blow up.
Where is Haus-T? Would you rather hold Swiss Francs or Euros in the next reset?
Bailout or extortion? Inquiring minds may not exist ... At least we have the 100% assurance that liquidation would have been orderly, or disorderly, just as we can be quite certain that it will either rain today, or not.
What will be the true value of a Swiss Note when the Americans are forced to borrow from them again?
Who needs paper money when the trend is going digital? This news is a wake up call.
You were surprised?
Bwahaha ahahahahahahah
It takes a quasi government entity to go broke when they literally have a license to print money