It was a bit of a surprise this morning: the Swiss central bank cut its key interest rate by 25 basis points to 1.5%. This was not necessarily to be expected, as the Swiss economy and inflation rates are relatively stable. The Swiss franc has traditionally been seen as a safe haven, especially for Europeans, especially when the eurozone has once again run into heavy seas with its euro. So why is this the case? It is possible that the Swiss are anticipating the major problems in the eurozone and in this way want to prevent the Swiss franc from rising too sharply when a flight from the euro sets in. Be that as it may, central bank policy is ultimately always the same nonsense, an attempt to conceal from people the true intention of a central bank, the creeping robbery of citizens' purchasing power in favor of the state. So let's stay alert and watch the fiat spectacle from the sidelines.
https://www.bloomberg.com/news/articles/2024-03-21/snb-races-ahead-of-ecb-and-fed-with-rate-cut-to-contain-franc?utm_content=economics&utm_medium=social&cmpid%3D=socialflow-twitter-economics&utm_source=twitter&utm_campaign=socialflow-organic https://m.stacker.news/22097
It took me a long time to wrap my head around the nature of the problem with central banks. It's not that they set rates too high or too low, it's that they set interest rates at all. People spend their energy debating if they should raise or lower the rate, but both of those assume the false assumption that rates should be set by someone.
CBs are mentioned by our amigo Kark Marx in his manifesto. It's pure communism
Most of his 10 planks have been adopted all across the west.
Last will be: 'You'll own nothing.... ''
They mean the same thing, but "Everyone owns everything" was such a better pitch than "You'll own nothing"
You have to let this nonsense of everyone owning everything sink in long enough to realize that it falls below the absolute zero line of intellect. The total abolition within oneself
Central planning always ends in disaster.
Resident of Switzerland here.
One thing that needs to be pointed out is that CHF is probably the strongest fiat currency in the world and that Swiss gov. has a pretty low debt to gdp ratio. Otherwise such low interest rates would not be possible.
Yes, exactly, and that's why I wrote that Switzerland is the safe haven in case the euro collapses again. And, and this is where it gets speculative, I suspect that they are playing the trailblazer in this interest rate cycle so that capital flight is not stimulated so quickly
That could be. Also I think the Swiss don't want too much foreign capital given the problems inherent with borrowing, and the fact that money already doesn't go very far in Switzerland (low ppp).
good point!
https://www.swissinfo.ch/eng/banking-fintech/swiss-central-bank-surprises-by-lowering-key-interest-rates-again/74028772
Past the point of no return on the 2% inflation target. The fiat ponzi is too far gone
And s.o. has to pay the bill of the debt party
No worries. They can set the interest for now. They can even escape the shambles for now. But they will be doomed within the next 20 years or so.
Here we go kids, game on!
It's getting warmer now
Any way that it could be related to how the USA is making their machines go "brrrrrrrrrrr" at a significant rate? They can barely keep up with inflating the dollar to infinity.