Swiss currency shockwave a picnic compared to what's in store for the U.S. dollar - Peter Schiff Worried about its national currency, the franc, losing too much of its value as both it and the euro fall against the U.S. dollar, the Swiss government has recently removed a 2011 cap placed on the franc against the euro to protect it from further losses amid rising global financial pressures. “Recently, divergences between the monetary policies of the major currency areas have increased significantly — a trend that is likely to become even more pronounced,” the Swiss National Bank announced Jan. 15 in a press release.[PDF] “The euro has depreciated considerably against the US dollar and this, in turn, has caused the Swiss franc to weaken against the US dollar,” the bank said. “In these circumstances, the SNB concluded that enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified.” That announcement and the bank’s actions led to a round of volatile trading in world markets. Following that announcement, the franc spiked some 30 percent, reports said, and the Swiss may have lost as much as $60 billion in a single day — perhaps the world’s largest daily loss ever, according to ZeroHedge.com. “The SNB is lowering interest rates significantly to ensure that the discontinuation of the minimum exchange rate does not lead to an inappropriate tightening of monetary conditions,” the Swiss central bank continued. “The SNB will continue to take account of the exchange rate situation in formulating its monetary policy in future. If necessary, it will therefore remain active in the foreign exchange market to influence monetary conditions.” As dire as the financial news out of Switzerland and Europe has become, financial expert Peter Schiff is warning that the worst may yet be coming. In a recent Schiff Report, he said the move by the Swiss was a financial “bombshell” that “surprised everybody.” Schiff said one reason why the move was so momentous was because, just recently, Swiss central bank officials and the Swiss government had vowed to “defend” the franc’s position against the euro. However, he said it wasn’t a move he didn’t anticipate. “I’ve been expecting this from the very beginning,” he said in his report, adding that he knew it would come but he just did not know when it would happen. MORE