Tag Archive: Politics

QE by any other name

2019-11-07

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2019-11-07

Boosting Reserves, 2018-2019
“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution. “ – Ludwig von Mises, Human Action In less than a year, we have witnessed an unprecedented monetary policy rollercoaster by the Federal Reserve, which began with a momentous U-turn in the central bank’s guidance in January, and has continued to escalate ever since.

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The Growing Opposition Against the ECB

2019-10-23

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2019-10-23

Few investors and market observers were really surprised when Mario Draghi announced the ECB’s next massive easing package in mid-September. Cutting rates further into negative territory and the revival of QE were largely expected sooner or later, as the “whatever it takes” outgoing ECB President is now faced with a wide economic slowdown in the Eurozone.

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Raising Switzerland’s retirement age – big differences of opinion

2019-10-19

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2019-10-19

Switzerland’s government has long discussed the importance of raising the retirement age to ensure the financial viability of the pension system. However, it is not clear whether voters would support such a plan. According to a survey by Deloitte, an accounting and consulting company, raising the official retirement age might not find majority support among Swiss voters. Some groups are firmly against the idea.

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A buying opportunity in precious metals

2019-10-15

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2019-10-15

After a remarkable run over the past few months, gold and silver now appear to have entered a period of consolidation. Many speculators and short-term focused investors have sold their positions fearing a correction, while mainstream market commentators fuel these fears, with analyses that proclaim “the end of the road” for gold and silver.

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Swiss upper house calls on executive to end marriage tax penalty

2019-10-15

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2019-10-15

In Switzerland, some married couples pay more tax than unmarried ones, something referred to as the marriage tax penalty. The issue has been doing the rounds of the halls of Switzerland’s government for around 30 years. On 28 February 2016, a vote to change the current system was narrowly rejected by 50.8% of voters.

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Swiss are skilled but not so dynamic, finds ranking

2019-10-10

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2019-10-10

Switzerland has slipped down a slot in the annual Global Competitiveness Index from the World Economic Forum (WEF). Having come in fourth in 2018, Switzerland now follows Singapore, the United States, Hong Kong and the Netherlands. The index covers 141 countries. The world economy is not ready for a major slowdown, warns WEF.

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Vaud’s 2020 budget – higher spending, higher taxes

2019-10-06

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2019-10-06

The Swiss canton of Vaud has managed to balance its 2020 budget with a small surplus of 76,000 francs. This is the 14th time in row that the canton’s budget has been in the black. At the same time planned spending is up by 2.43%, well ahead of Swiss inflation – prices were lower in September 2019 than they were in September 2018.

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A turning point in the bond market?

2019-10-02

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2019-10-02

Yield curve inversions typically precede recessions, 1980-2015
We’ve recently seen a lot of coverage and even more “expert analyses” on the state of the bond market, to the extent that the average investor, or the average citizen for that matter, is likely to be overwhelmed and very confused about what it all means. Experts from the institutional side and defenders of the current monetary direction argue that it is all the result of policy choices, that’s it’s all under control and that we really shouldn’t...

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Geneva’s 2020 budget 590 million francs short

2019-09-22

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2019-09-22

Next year the canton of Geneva plans to spend CHF 9,143 million. However, forecast revenue is only CHF 8,553 million, leaving a shortfall of CHF 590 million, according to a cantonal government press release. The canton’s finances have been hit hard from both sides.

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“The Eurozone faces the worst combination of economic and systemic risk”

2019-09-06

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2019-09-06

The Eurozone faces the worst combination of economic and systemic risk
The past few months have been an exciting time for gold investors, as the precious metal has seen a spike in demand after serious economic concerns and geopolitical tensions unsettled the markets. Many mainstream analysts have pointed to a number of recent events, from the US-China trade war escalations to the inverted yield curve, to explain the recent gold rally.

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THE FED’S CAPITULATION: WHAT IT MEANS FOR GOLD INVESTORS

2019-08-27

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2019-08-27

Fed's Capitulation - Claudio Grass
After the Federal Reserve’s monetary policy U-turn earlier this year and the central bank’s decision to cut interest rates for the first time in a decade, mainstream investors and analysts believe that holding rates lower and for longer will help keep stock markets afloat and the economic expansion alive.

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Switzerland’s First Crypto Banks Receive Licences

2019-08-27

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2019-08-27

The Swiss financial regulator has awarded banking and securities dealer licences to two new “crypto banks”. SEBA and Sygnum have been cleared to operate in the new world of tokenised digital securities, a major milestone for the fledging industry.

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“More of the same” at the ECB increases gold’s appeal

2019-08-22

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2019-08-22

“The intellectual leaders of the peoples have produced and propagated the fallacies which are on the point of destroying liberty and Western civilization.” Ludwig von Mises, Planned Chaos. It took multiple meetings and over 50 hours of official negotiations for EU leaders to reach an agreement on the appointments for the top jobs of the EU and the ECB, but in mid-July the results finally came in.

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Survey shows growing political acceptance for a fuel tax

2019-08-12

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2019-08-12

Analysis of survey questions filled out by Swiss politicians in 2015 and 2019 shows a marked turnaround in attitudes towards the introduction of a carbon tax on fuel. The Smartvote online platform asks politicians various attitudinal questions in an effort to help voters make up their minds in the lead up to national elections.

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China’s Big Gamble(s): Betting on QE Again?

2019-07-30

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2019-07-30

China GDP, 2001-2019
As an economic system, even the most committed socialists had come to realize it was a failure. What ultimately brought down the Soviet Union wasn’t missiles, tanks, and advanced air craft, it was a simple thing like bread. You can argue that Western military spending forced the Communist East to keep up, and therefore to expend way too much on guns at the expense of butter.

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Switzerland could lose billions in global corporate tax reform push

2019-07-22

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2019-07-22

Switzerland stands to lose up to CHF10 billion ($10.2 billion) as a consequence of attempts by other countries to change how multinationals are taxed. Countries belonging to the G20 and OECD are pushing for changes in corporate taxation rules to capture a larger share of taxes of multinationals based in tax-friendly destinations like Switzerland.

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Retirement age to rise for women in Switzerland

2019-07-20

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2019-07-20

The Swiss government has been looking at measures to shore up the finances of Switzerland’s pension system for some time. The difference between the official retirement age for women (64) and men (65) is an obvious target.

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In defense of Switzerland

2019-07-07

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2019-07-07

An interview with Prof. Angelo M. Codevilla. Following decades of the propagation of a false historical narrative regarding Switzerland’s role during WWII, an entire generation, especially in the West, has grown up with a distorted version of events, based on unfounded and unsubstantiated claims.

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Planned pension reform sees women working a year longer

2019-07-06

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2019-07-06

The Swiss government plans to incrementally increase the retirement age of women to 65 while offering incentives for all people to work longer. The CHF2.8 billion ($2.84 billion) savings measures would be accompanied by a sales tax hike and extra pension payments for hardship cases.

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Swiss poised to retaliate against EU stock market access

2019-06-25

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2019-06-25

The Swiss finance ministry has reaffirmed that it is ready to ban stock exchanges in the European Union from trading Swiss shares – in a worsening row with Brussels over the future of bilateral relations. “In the event of stock market equivalence not being extended, the finance ministry will activate this protective measure. [….] Consequently, trading venues in the EU would lose recognition,” the ministry said on Monday.

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