The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Nobody has to "inflow" their CHF holdings into Switzerland to use it as a means of exchange. Firms can take their CHF holdings, convert to dollars, and buy oil - or whatever - on the global commodity market. By design the global commodity markets are outside the control of any one State, although some countries: e.g., US, China, have more short term influence than others.
Nobody has to "inflow" to use the CHF to play the "Financial Engineering" Game. Possible to use CHF to buy dollar denominated instruments paying interest in euros.
In both cases the affects on the Swiss economy - where they HAVE to take the CHF - can be dire if the "reverse seigniorage" percentage gets large enough.
Skepticism is the first step on the road to truth. -- Denis Diderot
by Cyrille - Apr 12 24 comments
by DoDo - Apr 6 39 comments
by Cyrille - Apr 8 6 comments
by ARGeezer - Mar 31 10 comments
by Zwackus - Mar 29 8 comments
by aquilon - Apr 3 156 comments
by Xavier in Paris - Mar 27 5 comments
by ManfromMiddletown - Mar 20 66 comments
by Oui - Apr 16
by Cyrille - Apr 1224 comments
by Cyrille - Apr 86 comments
by DoDo - Apr 639 comments
by aquilon - Apr 3156 comments
by ARGeezer - Mar 3110 comments
by Zwackus - Mar 298 comments
by DoDo - Mar 279 comments
by Xavier in Paris - Mar 275 comments
by ManfromMiddletown - Mar 2066 comments
by DoDo - Mar 1818 comments
by ARGeezer - Mar 1737 comments