This entry was posted on Sunday, October 30th, 2011 at 9:00 am and is filed under International Politics.
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Gawd – are we still sourcing from the NYT when the zerohedge blogsite had these graphs two months ago.
We’re never going to bury the MSM if we keep referring to the useless bastards, and in an increasing number of cases it can’t be said that they’re even taking the lead on the news items. Quite the opposite in fact.
The people perhaps – but not the Swiss Central Bank. A couple of months ago they announced that they would peg the Swiss Franc (CHF) against the Euro. They did this to ensure the Franc would not continue to rise in value and destroy their exporting base.
Of course the real problem was that the CHF was rising because people across Europe (and around the world) were switching money away from the Euro economies and into Switzerland to try and protect themselves against the Euro-crackup.
Since that threat has not yet receded what the Swiss Central Bank has effectively done is place the future of the CHF into the hands of the Euro bureaucrats, because if the Euro situation continues to worsen the SCB has to buy shitloads of crappy debt issuance from Euro countries – which means they have to print Swiss Francs at Bernanke rates to maintain the peg. In other words – big-time inflation. Not to mention other risks: after all, you can now effectively borrow CHF at 0% interest to buy crap Euro-debt instruments generating 5%-30%, with virtually no downside risk. We’ll see where that leads in a year or so.
The Chinese “own” a couple of trillion of US treasuries – which Ben and co are busily deflating. Cue pissed off Chinese who threaten to do …. something. Somehow I don’t think “threatening” to sell all that carries much weight when the question will be: to who?
So so interview. It should have been longer and perhaps a debate, given the length of Jon’s statements-as-questions. I think any left-winger who supports government loves talking theory as opposed to talking about how things work out in practice.
I love Jon’s standard exemplar of taxes=fireman as the classic example. If all I had to pay tax for were cops and fireman – hell, even the socialist world of NZ doctors and nurses – that would probably be acceptable to me. Listen to garbage from the likes of Obama at the moment: he only talks about nurses, fireman and cops. If only! In fact I pay taxes for a whole lot of other shit: shit that actually feeds on itself and grows, which to me is the key point that Stewart refuses to accept when he talks about a government that is “accountable” to voters. Hah!
I think this article is more interesting, though I realise it’s whole premise – that ruling elites have run amok – cuts against the grain of your faith in hiring the right experts. WARNING: It’s a damned long article.
My thought as well, SE and thanks tom for that answer.
In addition it would seem to be suggesting that China’s capital markets haven’t yet developed to the point where Chinese banks need to start finding international business. Which is interesting in itself.
Some say that both Japan and China are playing a long game and combining forces against the US with their massive T-bill holdings which both have. Who knows? There’s certainly no love lost as a result of 1930’s Manchuria, that’s for sure, but putting that aside, it is something to note and file away, as a possibility on the great game’s chessboard.
American and British print media leave our lot for dead. That is a great graphic and story and makes a RWC one point loss pale into insignificance, really. But seriously, why can’t our media do that sort of story instead of endless breathless bits about seagulls with SPF300 on them? Or someone’s Mum with the obligatory bad perm, who is fucked off because her daughter’s cat wants compensation because of a bit of crude on her paws?