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Are you sure about the historical negative correlation?

The selloff today had nothing to do with the Fed... It's just a big move (bear steepening) in pretty much all developed mkt yield curves. It caused what felt like a typical risk parity puke.

It's difficult, indeed, so it's just one day at a time.

It's all about the action is in the long ends at the mom...

Maybe it was Zim dollars?

No, it's not Redi they be talking about...

$100bn of shareholder capital? Really?

You can do some ratio put spreads or some such malarkey, but all these things will always be somewhat tricky.

It seems that it didn't even last that long...

Nice... Does it come in 50'' size?

Well, maybe you're right... On the other hand, colour TVs did make black 'n white TVs completely obsolete; LCD etc screens have completely replaced CRT.... I hope you see what I am getting at as well? And no, I insist. If I really really really think about it, it is quite Platonic.

How do you suggest "free markets" should dictate rates? What precise mechanism are you proposing?

Regardless of your subjective judgment about whether it's good or bad, cashless is the future. Sweden, as well as other Scandi countries, Switzerland, Netherlands, Singapore etc are well on their way there. It's all very Platonic, really, if you think about it.

There are many reasons why I, for one, do it... Some of these reasons are a bit more altruistic than others (along the lines of what Baron mentioned). Regardless, stop your wondering and accept that there are reasons. To the OP, well done for surviving... Hope you keep your mojo and best of...

Well, even taxes appear to be rather uncertain these days, especially if you're a certain large US corporate based in a certain European country...

it's actually a difficult question... While the DD models suggest a mechanical connection, the correlation, in fact, is a lot more tenuous. There's quite a lot of discussion of this out there, but the upshot is that it's just not obvious.

Well, the question is about the fraction of their reserves which isn't denominated in CHF, so buying lots of chocolates and watches won't help with that. As to the anonymous Swiss bank accounts, it seem to be so, I dunno, 2004... Not so much in Switzerland...

What do you think they should do with their reserves instead of buying stocks?

Very little, if any... That's my impression in FX and rates. The costs (e.g. jail terms) associated with these "strategies" have increased such that they don't make sense risk/reward-wise. Banks are agency brokers these days in a whole lot of products, including FX.

Technically speaking, in Japan, the interventions are most commonly performed by the MoF, rather than the BoJ. Given the argument, it's a relatively significant distinction. Point is that the government's (I include the CB) control of its currency is essential. This has been demonstrated...