by Bruce Krasting, Bruce Krasting Blog:
Two headlines today from Switzerland tell an important story. The first is about the rapid increase of foreign reserves due to the currency “Peg” administered by the Swiss National Bank (SNB). The reserve rose by another CHF 41.4Bn ($43Bn) in July. This follows big increases in May (CHF 59.1Bn) and June (CHF 68.4Bn).
In an effort to protect the domestic Swiss economy from deflation, and all the other ills that are besetting the rest of the Europe, the SNB has purchased all of the Euros that have been coming into Switzerland the past three months.
Guess what? It’s working! With the benefit of unlimited printing of Swiss Francs and the “rigging” of the exchange rate, the Swiss economy is doing very well. This headline was also in the Swiss press this morning: