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Permanent link to this article: http://snbchf.com/2012/09/the-big-swiss-faustian-bargain/

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  1. Alexi

    So SNB is printing money to keep CHF ”cheap” compared to EUR which is good for EURCHF longs but if SNB gets close to bankrupcy wouldn’t it be even better for EURCHF longs as Investors start fleeing from Swiss currency?

  2. George Dorgan

    As explained href=” http://snbchf.com/2012/09/myth-1-snb-profits-on-reserves/“> here an SNB bankruptcy costs the Swiss taxpayer around 15% of GDP. It raises public debt from 40 to 55% because the Swiss will refinance the central bank. This 55% is still a lot better than Germany with 83%. Moreover, during the time before the bankruptcy the Swiss can earn negative interests on bonds and can reduce the debt via the current public surplus.

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