SNB & CHF

There is a downside to steel reinforcing bars: they rust. The second most remarkable thing about the sudden collapse of the Florida condo building was the rush to assure everyone that this was a one-off catastrophe: all the factors fingered as causes were unique to this building, the implication being all other high-rise reinforced concrete condos without the exact same mix of causal factors were not in danger. Before we accept this conveniently feel-good conclusion,...

In 1999, social expenditure in Switzerland was CHF 13,370 per resident. By 2019, the same figure had reached CHF 21,300, a rise of nearly 60%. © Alexey Stiop | Dreamstime.com Over the same period, total inflation was around 11%. Applying inflation to CHF 13,370 brings the figure to CHF 14,480. Why has the cost risen beyond this and how has the extra spending been funded? One of the key drivers behind the rise in social expenditure is increased spending on pensions as...

On 30 June 2021, Switzerland’s Federal Council discussed ways of preparing Switzerland for the autumn and winter months and a possible renewed rise in the number of coronavirus cases. © Silviu Matei | Dreamstime.com From the meeting ministers produced a report setting out various scenarios and response plans. The key elements are rapid identification of new variants of concern, continued progress with vaccination and a focus on ensuring sufficient capacity for...

Here’s something we often heard in 2020 from experts who wanted long and draconian covid lockdowns: “Yes, these say-at-home orders are causing economic turmoil, but if you don’t lock everyone down now—and keep them locked down for a long time—your economy will be even worse off!” The reasoning was that without lockdowns, the covid-19 virus would spread out of control and that as a result, so many people would die—or become so ill—that virtually everyone would become...

Forbidden fruit: the paper straws are OK, but the plastic cup is banned in much of Europe Westend61 / Maria Elena Pueyo Ruiz Single-use plastic items like straws and cups are no longer allowed in the 27 European Union countries. This isn’t the case in non-member Switzerland, where retailers and restaurants are taking their own approach. The EU ban on certain plastic products took effect on July 3 and covers a range of everyday items from food packaging to wet wipes....

Lessons to be Learned from East Asia The world should take a lesson from how East Asia ran itself in 2020. Japan had no lockdown. None. With an aging population, its death rate has been creeping up for many years. In 2020, it fell by 0.7%, as if Covid-19 was a life-saver. The Prime Minister of Singapore repeatedly appeared on TV to advise people to live normally and not let fear dominate. Taiwan had a total of 623 Covid-19 related deaths [ed. note: there were only...

What’s striking about our thought experiment is how little reliable data we have about the transmissibility of our hypothetical Virus Z and the long-term consequences of its mutations. Let’s run a thought experiment on a hypothetical virus we’ll call Virus Z, a run-of-the-mill respiratory variety not much different from other viruses which are 1) very small; 2) mutate rapidly and 3) infect human cells and modify the cellular machinery to produce more viral...

Monetary inflation is just a type of embezzlement. Historically, inflation originated when a country’s ruler such as king would force his citizens to give him all their gold coins under the pretext that a new gold coin was going to replace the old one. In the process of minting new coins, the king would lower the amount of gold contained in each coin and return lighter gold coins to citizens. Because of the reduced weight of gold coins that were returned to citizens,...

Financial institutions must be wary of being consumed by the consequences of careless environmental or social decisions. Keystone / Rank Augstein Climate change is forcing financiers to change the way they think and act. This could have a big impact on their balance sheets – and potentially their very survival. “Bankers are no longer purely financial specialists, but also connoisseurs of the environmental and social footprint of investments,” said Yves Mirabaud in...

Whenever a government program or policy produces deaths of innocent people, the way I figure it is that that makes it incumbent on libertarians to take a firm stand against such programs and policies. We all know that there are all sorts of government regulations that deprive people of liberty that we libertarians need to oppose. Recent examples include mandatory lockdowns and mask mandates. But there is something about the finality of death that makes government...