This makes absolutely no sense, which is why the Swiss Franc (CHF) just had the most insane trading day in its history. It was up by as much as 30% against the Euro this morning, and is now up something like 15%. Currencies don’t move that way unless something really strange is up.

This makes no sense because the Swiss National Bank (SNB), just a few months ago, came out hard against the Swiss Gold Initiative, saying it was crazy and dangerous precisely because it would cause the CHF to skyrocket. The purpose of the Gold Initiative was to muzzle the SNB at a 20% gold reserve so they couldn’t keep printing CHF in order to support the Euro. This robs purchasing power from Swiss consumers, and is basically stealing.

So now that they have basically said they will stop printing CHF to support the Euro, they seem a bit schizophrenic. They have basically just done exactly what the Swiss Gold Initiative was going to force them to do, so everyone is really confused.

Gold, by the way, is up about 2.5% on the news.

My guess is that the SNB is fearing a Eurozone collapse in the next few weeks/months when SYRIZA is elected in Greece and goes sour on the bailout, forcing a Grexit. Just a Grexit does not pose existential danger to the Eurozone, but if it causes a bond run on Portugal or Italy, the whole pair of dirty underwear that is the Eurozone is going to unravel at the seems and Europe will be exposed in all its monetary nakedness.

The SNB, back in November when it railed against the Swiss Gold Initiative, was assuming the Euro would float back up eventually. But it just keeps falling. And they want out. That’s what I think happened here.