The FT reports:
The Swiss government met for a third unscheduled session in short succession on Monday as ministers grappled with curbing the surging Swiss franc.
No details on any potential measures were expected until Tuesday, but Switzerland's leaders have been bombarded by suggestions ranging from central bank intervention, negative interest rates, capital controls and even emergency tax cuts to help beleaguered exporters.
“It's hard to know what to suggest, but the government will have to do something if matters carry on like this”, said Daniel Kalt, chief economist for Switzerland at UBS.
Poor dears: there problem is so much money is flooding in there is no chance of their real business (yes, they do have some) surviving. And they just don't know what to do about it!
Well, I have a simple solution. It's in several parts:
1) End banking secrecy
2) Enter into the European Union Savings Tax Directive in full, now
3) Endorse extension of the European Union Savings Tax Directive
4) Embrace full tax transparency through automatic information exchange.
It's all possible.
It would solve their problems (and a lot of other people's too).
But apparently it hasn't occurred to them. Strange.
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1) End banking secrecy – HOW in gods name will this give a weaker franc- this is utter nonsense
2) Enter into the European Union Savings Tax Directive in full, now – WHY would Switzerland do this and is utter nonsense
3) Endorse extension of the European Union Savings Tax Directive – Again will do nothing to weaken the franc.
4) Embrace full tax transparency through automatic information exchange. As above will do nothing
This is just asking four times for the Swiss Government to go against the will of the Swiss people.
Do you actually understand that banking secrecy is NOT a banking decision it is written into Swiss Federal law – voted on by the Swiss people and wanted by the Swiss people.
The obvious point I am making is that if these things happened ‘hot’ (call it illicit if you like) money would leave Switzerland
Enough to redress the exchange rate crisis
And as you say – it is a Swiss choice to help this criminality
It is a feral state
Introduce capital controls to prevent too much capital flowing in and out. Or is that being too naive?
No – I support it!
Like a runaway train:
August 2010. £1 = 1.65 CHF
August 2011. £1 = 1.16 CHF
(According to Google’s rates)
I think even the rich who holiday, and ski there, will be feeling the pinch!