After having spent half of Swiss GDP on intervening (unsuccessfully, see chart) in the foreign exchange markets the SNB (Swiss National Bank) is at the end of its wit.

Source: Forexhelp.com

If you’d like to know what’s next in store you only have to go back 40 years:
April 30, 1971 – Rich Germans have been taking loads of marks on business trips to Switzerland and converting into Swiss francs due to the possibility of expropriation, tax increases or exchange control regulations.
May 10, 1971 – Swiss revalue franc to prevent Dollar influx.
May 26, 1971 – Swiss franc revalued by 7%.
August 11, 1971 – SNB holds back accepting dollars for Swiss francs for 10 days after $2bn inflows.
August 21, 1971 – Swiss exchange markets remain closed as cabinet contemplates what to do.
August 26, 1971 – Swiss limit daily USD/CHF transactions to $2m.
September 1, 1971 – SNB refuses to buy Dollars from tourists.
December 1, 1971 – Swiss banks agree to a voluntary control system to hamper speculation by limiting transactions to 1m per customer.
July 5, 1972 – The Swiss government orders Swiss banks to charge a penalty of 8% on any new dollar deposits and bans interest payments.

(Source: Google, New York Times)

So what’s left in the tool box after near-zero interest rates and failed currency interventions of gargantuan size? No bonus points for getting that guess right!

Remember: When governments do not like the rules – they change them.