According to the Financial Times, in perversion of all perversions, we’re now supposed to believe that Switzerland is the new China. Got that?
“Switzerland is the new incipient China,” said Steven Englander, Citigroup’s head of foreign exchange strategy.
Apparently, Switzerland’s attempts to keep the franc artificially weak while building up its central bank reserves make it so.
Well gee. Not too long ago, Brazil was supposed to be the new China:
That is, until Australia was dubbed the new China, at least as far as General Electric is concerned:
“I think more American foreign policy failures (the Vietnam War, the Second Gulf War, the Afghan War, and others) result from idealism and hubris than from calculation. We think we can improve a situation through military intervention and dollops of money and then, at huge cost, find we can’t. It would be wrong, and untrue to American nature, to practice a strict form of realpolitik in which geopolitics and commerce trump all other concerns. But we have to be more realistic about what we can and cannot accomplish, and more open with respect to our real motives.” — Charles Krakoff
“The unfortunate reality is that, unlike during the financial crisis of 2008 and 2009, central banks can’t be the saviors this time around for a struggling global economy. Other government entities, with better-suited policy tools, need to step up to the plate.” — Mohamed El-Erian