braincell
Registered: Jul 2011
Posts: 551 |
08-06-12 03:56 PM
What's there to think about? We know all that. Of course there's no risk for inflation, they are hoping for it in fact, like the report mentions because the deflationary risks are much worse for their economy.
If my knowledge of history isn't too far off, I'd say this is the most forceful enforcement of currency value in history. They are literally tied to the Euro and probably will be for another 2 years at least, until they can manage some "inflation" (or the Euro recovers). The amount of money the Swiss have is impressive, so it's bound to be a historical enforcement.
Just remember the UK government in the 80s saying the same thing about the Pound-USD... They lasted, what, a few weeks? Heh.
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). Basically, you can't be poor when you're the keeper of the royal treasury with the privilege of lending that money out to peons and charge a certain interest rate (and sometimes keep it if the kings get deposed). You have first world, third world, dictators, junta, etc... sending money to your banks for long term/rainy day safe keeping due to your non grata status toward nosy investigators (the right have been reduced some what in recent years) and being historically neutral in nearly all conflicts. Due to your neutral status, nearly all global organizations have offices in the country and their funds is also being kept the very same banks as well. Nothing new here 
. Singapore also has similar status in East.
