Consequences of the SNB Case in Forex

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The consequences for the masses of the intervention of the SNB in ​​FOREX, or any other similar intervention are always the same, more regulations and more restrictions.

And the script of the film is always the same, promote a direction and play against the masses.

The “crash” in the markets come and go, are simple cleaning mechanisms and are very lucrative for the specialists. The problem arises when we are directly affected.

And it’s not nice to see an account disappear in less than 30 minutes as if it were an act of magic.
How to approach these events?

In the last 15 years I have witnessed 10 similar events, of which 3 have occurred in the markets in which I work, and none of them has caused me any shocking consequences.

Those who have participated in the FX Classrooms know my philosophy. Never have all the money in the broker, constantly withdraw profits, put the ego aside and forget to carry an account from 100 to a million. Be smart and cautious, not boastful and greedy.

As I have said several times, the objective of the specialists is always the same, “do the greatest harm possible to the greatest number of people.” If I were the village baker, I would like everyone to buy my bread. For specialists it is similar, they want everyone to target their savings in speculation and the more unsuspecting the better.

They plan the trend, organize ignorance and finally pass the vacuum cleaner.

And the essence of this game has not changed in more than 300 years. A game that began when the current banking elite opened the doors of the Bank of England in 1694, which despite being “nationalized” in 1946 is still controlled by almost the same founding “partners” (families), from which control of 98 % Of global finance and therefore the life of the planet.

Of course, the reasons, the stories and the excuses about what has happened will be left behind, but we are already accustomed to the absurd rhetoric that almost insults the intelligence of those who can open their eyes and read between the lines. In the end it is more of the same, transferring wealth to a small group that never appears in the media, or in the directories of large corporations, or in the church, or in political parties; They are like ghosts.

They own nothing, but they control everything.

What will happen to SNB, CHF, Switzerland, etc.?

Nothing, the same as always, less Moors on the coast, we changed the orchestra and continue the party.

The Swiss did the right thing and therefore the specialists punished them by overvaluing the currency in record time. There was no need for a pair to drop 3600 pips in 18 minutes, but these people are very vindictive, they do not forgive one for anyone and they love to see the blood running through the streets.

But the SNB actually did what every good speculator should do, “cut your losses fast”.

The SNB entered the game of “supporting” the CHF at 1.2000 for making life easier for those above. After 2 years watching the losses pile up, they realized that this would not have a happy ending, and the Swiss loathe the bubbles and snowballs in their financial products. As sensible people and speculators, they decided to drop the floor and sell, and assume the losses that would now seem great, but compared to the snowball effect, in 30 years they would pay with their style and quality of life.

This is exactly what will happen to the US when they release the USD.

With the potential fall of the USD, we will have to place a logarithmic scale to the USD to be able to compare it with the increase of the CHF, because the relation of scales will be abysmal. And this exercise can be done right now with the USD against gold.

FOREX Brokers for Bankruptcy for SNB Intervention in FOREX

Lowering to our heights, the most relevant consequence of this event of the SNB, is the bankruptcy and declaration of insolvency of some FOREX brokers.

Brokers that do NOT present losses are NOT reliable, simply because in an event like this, if customer orders were in the real market, they would all suffer losses.

But if the orders never go to the real market, the broker presents the client with a fictitious data with which he can execute orders at the price he wants, while the funds are stored in the account of the broker and never go to the real market.

And after the Crash this type of brokerage can say “we returned the losses of the customers”. Of course, they can say that because in truth the customer had not lost anything and their orders never reached the real market, they were “at home”.

But, how is it possible to return the losses to the customers, if the orders were in the real market, and the specialists took everything?

A different example is Interactive Brokers (IB), considered one of the most reliable and stable brokers in the financial world, and the brokerage that I have used for almost 10 years. IB reported losses of about $ 120 million. That’s good, let’s see why.

First, because he got losses. This indicates that IB is a real ECN, that is, that transfers all the orders of its clients to the real market and that therefore they were victims of the terrible play of the specialists when collapsing the price in 18 minutes, emptying the level 2 of quotation , Failing to maintain liquidity and allowing prices to fall drastically before orders could be executed. In short a robbery in everyone’s nostrils, but a robbery where you can not usually prove or accuse anyone directly, let alone recover the totality of the lost.

Second, by the amount of the losses. IB’s capital amounts to $ 2.8 billion. That means that the levels of “leverage” are well monitored in IB, to the point that a huge Crash has only caused a loss of less than 4.3% of its total net capital. But in reality less than 1% of the total capital to which they have access as a prime broker.
Another thing would be that IB is lying and that in a few months or years comes to the public that the loss was not 120 but 12 billion and that it was a printing error, that escaped two zeros and declare bankruptcy.

But so far and relying on published figures, everything seems to be under control.


Each of these events are similar to “background”, the only thing that changes is the “form”, that is the details, places, protagonists, etc.
If we look at it from the perspective of specialists and its long-term agenda of maintaining a globalized slave system based on paper currencies, it is easy to understand and assimilate what happened.
We just have to adapt to the game, maintain a low profile, take precaution, look for one of the surviving brokers that has a good business model and continue to profit from this bottomless barrel that is the FOREX market.