Chuck E. Cheese
Registered: Mar 2012
08-07-12 05:52 PM
Quote from Nym:
I am not discussing the way the country is making money. I am just wondering if the 1.20 cap that SNB is defending will produce any inflation effect.
Btw, at the moment the SNB reserves of Euro is 60% of the GDP, far below of countries like Singapore or Hong Kong that is 200%.
Excuse my usual rant, but here's another new article that has SNB currency reserves at 71% of GDP. However, the article said that consumer prices is still dropping for ten straight months as of July so inflation is not yet insight. My two cent is once that ratio get closer to 100% than you might see something. As stated in the article, only serious threat insight is the collapse of the Euro.