Every 20th person in Switzerland has a net worth over 1.000.000 CHF. Must be coincedence....
Japan, Britain and Switzerland All In Deep Trouble
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Every 20th person in Switzerland has a net worth over 1.000.000 CHF. Must be coincedence....
There's nothing wrong with the Swiss and, broadly, their economy, per se.
Nothing, that is, apart from a fact that UBS balance sheet is, what, arnd CHF2trn; Credit Suisse is something like CHF1.2trn. Switzerland GDP is something like CHF130bn. You just apply a bit of a haircut to those assets and..., you do the math.
Other than that everything is hunky-dory.
Nothing, that is, apart from a fact that UBS balance sheet is, what, arnd CHF2trn; Credit Suisse is something like CHF1.2trn. Switzerland GDP is something like CHF130bn. You just apply a bit of a haircut to those assets and..., you do the math.
Other than that everything is hunky-dory.
Another real question relates to ....
WHERE IS THE MONEY GOING TO COME FROM ?
If the normal annual foreign purchases of US govt. debt is approximately $200 Billion....who is going to buy several $Trillion ?
And this is only the US govt....not including US corp. debt ....
And this does not include all countries other than the US....
ie All European debt. etc...
Also....the less developed countries would be left out to dry because the higher credits are stacked in front....
Also....where is the money to fund the IMF ?
....................................................................................
Thus what does this suggest ?
A 20x or more than normal annual demand ....Is this even possible ?
Does this suggest that all in need just "print the money" ?
Thus if "money printing" is a constant among all of the developing and developed countries....what is the implication ?
......................................................................................
Money replacement vs inflation.....
ie....There is $1 Billion in a box....
1/2 of the money burns..............
This leaves $500 Million..............
Every item drops 50% in price....
The govt. prints $500 Million......
Every item doubles in price........
Who won....Who lost....Who won....Who lost ?....
Was money and wealth replaced ?
Was there 50% deflation....then 100% inflation ?
WHERE IS THE MONEY GOING TO COME FROM ?
If the normal annual foreign purchases of US govt. debt is approximately $200 Billion....who is going to buy several $Trillion ?
And this is only the US govt....not including US corp. debt ....
And this does not include all countries other than the US....
ie All European debt. etc...
Also....the less developed countries would be left out to dry because the higher credits are stacked in front....
Also....where is the money to fund the IMF ?
....................................................................................
Thus what does this suggest ?
A 20x or more than normal annual demand ....Is this even possible ?
Does this suggest that all in need just "print the money" ?
Thus if "money printing" is a constant among all of the developing and developed countries....what is the implication ?
......................................................................................
Money replacement vs inflation.....
ie....There is $1 Billion in a box....
1/2 of the money burns..............
This leaves $500 Million..............
Every item drops 50% in price....
The govt. prints $500 Million......
Every item doubles in price........
Who won....Who lost....Who won....Who lost ?....
Was money and wealth replaced ?
Was there 50% deflation....then 100% inflation ?
just a question, when talking about printing money, do you think it is done without creating a liability?
The printing of money needs to be accompanied by the issuance of bonds (aka quantitative easing) which actually could have positive or negative effects depending on what the "newly" created cash is used for. If it doesn't create wealth resulting in incomes that offset the cost of borrowing, then the impact is negative as the liability remains and vice versa.
I wouldn't rely on governments though for smartly investing what will utlimately be a debt that I will indirectly have to repay (future taxes).
Printing money without a liability is equivalent to devaluing a currency. It's like saying you had 2 dollars yesterday, today your 2 dollars are worth 4.
I let you count the winners and the losers.
The winners: people with borrowings
The losers: everybody else : savers, foreigners,...
The result would be a zimbabwe like situation on a global basis, countries devaluing after countries, plunging the world into chaos
The printing of money needs to be accompanied by the issuance of bonds (aka quantitative easing) which actually could have positive or negative effects depending on what the "newly" created cash is used for. If it doesn't create wealth resulting in incomes that offset the cost of borrowing, then the impact is negative as the liability remains and vice versa.
I wouldn't rely on governments though for smartly investing what will utlimately be a debt that I will indirectly have to repay (future taxes).
Printing money without a liability is equivalent to devaluing a currency. It's like saying you had 2 dollars yesterday, today your 2 dollars are worth 4.
I let you count the winners and the losers.
The winners: people with borrowings
The losers: everybody else : savers, foreigners,...
The result would be a zimbabwe like situation on a global basis, countries devaluing after countries, plunging the world into chaos
This is an argument that Faber makes in a recent 'Doom, etc' report. Specifically, if the US decides to enter the race to the bottom and starts devaluing the USD, it may actually help the economy, but it will only work with the cooperation of the lender nations. If they buy the thesis that devaluing the USD is the only way to long-term economic stability, they might be happy to take the short-term pain. Then, as you say, it's a big question whether there are long-term productivity gains to be had from wherever govt-borrowed funds are invested. It's a real quandary.
Well said!
actually it's Jewish gold, taking Jewish money but not refugees. Jews put money in Swiss banks for protection then died in camps. Their descendants knew they had these accounts but were denied access without a account number. How much in how many accounts is unknown.Quote from traderjb:
How much of that is in stashed Nazi gold from the 40s?
They made the nazi war effort possible by laundering looted gold.
USB used force labor from Auschwitz
they assisted nazis fleeing to south america. Neutral?
have defrauded the taxpayers of The US and who knows how many nations
Laundered for Iran, Iraq, Cuba
oh my point, where did all this Swiss wealth come from, is it deserved, is it even theirs, and is losing it just karma and justice.