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Old 31.07.2011, 17:55
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Phil_MCR Phil_MCR is offline
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Re: CS & UBS Job Cuts will cost the UK tax revenue

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There of course were and are other factors contributing to the mess. But the exchange rate clearly is THE main factor. Circling around this simply is utter rubbish

Here now extracts from an interview given to the "NZZ am Sonntag" by Heiner Flassbeck, the chief economist of UNCTAD (UN-organisation for Commerce, Trade And Development) :

... the SNB should do what the Chinese have done for 20years and what the SNB did in 1978. They ought to declare that they are NOT to allow any more "upvalueing" of the CHF. And ought to defend the set exchange-rate target with all means ....
... SNB can print the money, with which the inventions are done. No speculator in the world has as much money as a National Bank can print. But the SNB needs the support of the Federal Government. .... SNB so can print the money, buy Euros and reinvest those Euros in USA state papers
.... the USA is not bankrupt. It just is a political "Hickhack" about a laughable extension of the debt level ....
.... "Buchverluste" (book-losses ? ) only develop if the interventions only are done halfheartedly from time to time ... both SNB and the Japanese Central Bank do not intervene consequently enough....
... the Chinese Central Bank defends the 8:1 rate between $ and Renminbi, has done so for 15 years without compromise ...
.... that such procedures lead to massive inflation is an old legend and comes from a primitive-monetarism. Was it true, China would have an inflation of 5000 % but it has only one of 5 % . Why ? Because a Central Bank has always possibilities to take out the money, spent through the front-door, back out of the monetary system by various ways ....
.... Switzerland now HAS to act. Switzerland cannot take it much longer. If the CHF goes up further, Swiss companies will be erased from the market.
>> the source is the NZZ am Sonntag of today
Then he is an idiot.
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