swiss franc

Swiss Franc … Why Should We Care?

Most people probably haven’t noticed, but the Swiss government did something extraordinary overnight. During the last European crisis, money flooded into the relatively safe Swiss currency.  The Swiss reaction was to fix their currency to the Euro, which at the time helped prop up the Euro and stopped the rise of the Swiss Franc.  Switzerland is not part of the Euro currency club.  The concept was that if the Swiss Franc continued its sharp rise that Swiss companies would be penalized in the world market.  Their goods and services would become far more expensive in other currencies, most especially in the Euro zone, but also in America, Japan & China. Alas, that move was reversed last night. Why would the Swiss government suddenly and without warning reverse its decision to tie its currency & the country to the European Union? Only one answer makes sense:  The European Zone has slipped back into another recession, despite the enormous worldwide “quantitative easing” — governments, lead by the United States, have flooded the world with money in an attempt to restart the growth engine of the world economy. News flash:  It’s NOT working. The Swiss government, I believe, realized that the EU was …