In response to:

The Biggest Loser

David4 Wrote: Feb 03, 2013 1:08 PM
More. Obvious for some time that Germany, to protect jobs, has loaned easy money to the Euro-periphery so that they could purchase German products. In the past two years those loans to the periphery have gone bad, and German banks and Germans will have to eat the loss. Would they have been better off coming to terms with less demand for their products a couple of years ago? Now the same question is coming up with Switzerland. To protect Swiss jobs the Swiss Central Bank has been easy with money. It sounds like they have helped loan money to the rest of the world. Now the world might not be able to repay. Are they better off for doing it than they would have been if they hadn't?

In Switzerland, it's not just the clocks that are cuckoo. Over the past four years Swiss politicians and central bankers have gone on an unprecedented buying spree of foreign exchange reserves. In 2012, their cache swelled to as much as $420 billion worth of various currencies, primarily the euro. This figure is a seven-fold increase since 2008 and equates to 70% of the country's annual GDP. 

The sum translates to $200,000 per family of four, enough to keep the Swiss in clocks, chocolates, and fondue for many years to come. The Swiss leadership will claim the money has been "invested" with...