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To: blam

The author is a little behind the curve in commenting upon the Swiss Franc.

I watched that one in real time with a little skin in the game, having gone into a Franc denominated CD through a well regarded financial institution.

Foreign interest and flight to safety was so high and currency appreciation so great, that the government of Switzerland felt compelled to enter into competitive devaluation in order to avoid a deflationary depression. They are heavily export oriented, and the very strong Franc was killing their domestic industry.

So, they printed. It was somewhat upsetting personally but a perfectly understandable move for the Swiss themselves. I still came out ahead for having gone into that CD, but not as much as it was prior to competitve devaluation.

Nobody wants to be the strongest currency, that has to be the role of the dollar, as the United States is the primary export market for them all. That’s why profligacy with the currency is so pernicious, but it’s also why no serious, enduring threats have emerged thus far.

That may change at some point, but I don’t see the likely candidate in the Yuan or Rupee. It might have to be the proverbial basket of currencies. That assumes a level of cooperation that also is yet to be seen.


3 posted on 03/31/2012 3:04:58 PM PDT by RegulatorCountry
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To: RegulatorCountry
Thanks.

I always like for someone who knows what they're talking about to critique us on these articles.

4 posted on 03/31/2012 8:14:04 PM PDT by blam
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