SNB & CHF

[Chapter 3 of Rothbard’s newly edited and released Conceived in Liberty, vol. 5, The New Republic: 1784–1791.] Every depression generates a clamor among many groups for special privileges at the expense of the rest of society—and the American depression that struck in 1784–1785 was no exception. If excess imports were the culprit, then voluntary economizing could help matters, and the press was filled with silly fulminations against ladies wearing imported finery....

The threat of “nuclear proliferation” remains one of the great catch-all reasons—the other being “humanitarian” intervention—given for why the US regime and its allies ought to be given unlimited power to invade foreign states and impose sanctions at any given time. We saw this at work during the run-up to the 2003 invasion of Iraq. It was said that nuclear weapons were among the “weapons of mass destruction” being developed or harbored by Saddam Hussein’s regime....

With the UST yield curve currently undergoing its own market-based twist, it’s worth investigating a couple potential reasons for it. On the one hand, the long end, clear cut reflation: markets are not, as is commonly told right now, pricing 1979 Great Inflation #2, rather how the next few years may not be as bad (deflationary) as once thought a few months ago. On the other hand, over at the short end, yields are dropping toward zero again. This steepening isn’t...

Swiss Franc The Euro has risen by 0.15% to 1.0875 EUR/CHF and USD/CHF, February 22(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Higher interest rates, driven by inflation expectations, is forcing an adjustment to equity markets. The S&P 500 is poised to gap lower today following slides in the Asia Pacific region and Europe. Japanese and Taiwanese indices advanced by steep losses were seen in China, Hong...

Blaise Pascal was a brilliant mathematician, inventor of the calculating machine, and pioneer of probabilistic theory during the 17th century. His philosophical works were published posthumously under the title of Pensées. Although Pascal was not always devout, this final work laid out his defense of Christianity. For many years he surrounded himself with people dedicated to what he would later call diversion – which consisted of hunting, parties, and...

If you are interested in personal finance, you probably have come across the concept of emergency funds. An emergency fund is simply some money available directly that you can use for emergencies. Most people will advise you to get such an account. And they will insist heavily on this subject. It is an interesting subject since not everybody agrees on the importance of the emergency fund. Some people have an emergency fund that can cover one year of expenses. And...

Alle Studenten der Wirtschaftswissenschaften werden früher oder später mit der neoklassischen Standardanalyse des Wohlfahrtsverlusts durch Besteuerung konfrontiert. Dabei geht es nicht um die Klärung der Frage, wozu man die Steuereinnahmen des Staates verwenden sollte, sondern vielmehr darum, wie und wo der Staat besteuern sollte, damit es zu möglichst geringen Verzerrungen im Marktgefüge kommt – gewissermaßen so, dass es am wenigsten wehtut. Idealerweise sollte die...

Last week was only four days due to the President’s day holiday but it was eventful. The big news of the week was the  spike in interest rates, which according to the press reports I read, “came out of nowhere”. In other words, the writers couldn’t find an obvious cause for a 14 basis point rise in the 10 year Treasury note yield so they just chalked it up to mystery. Of course, anyone who’s been paying attention knows that rates have been rising for almost a year –...

A restaurant that has been shut in Geneva Keystone / Martial Trezzini Several cantons have called for restaurants to be re-opened a month earlier than the official nationwide plan presented by the government earlier this week. Canton Graubünden wants restaurants to open their terraces from March 1. The canton has done a lot to fight the pandemic with its mass testing pilot programme, its officials argue. “In the end the government will have to give some...

© Marekusz | Dreamstime.com Switzerland’s federal accounts ended 2020 with a record-breaking deficit of CHF 15.8 billion. The deficit was caused by the pandemic. An unexpected CHF 3.6 billion fall in revenue combined with net CHF 12.5 billion in largely unplanned expenses combined to take the overall result CHF 16.1 billion below the expected positive net result of CHF 0.3 billion to deliver a loss of CHF 15.8 billion for the year. Pandemic-related expenditure...