Monday, August 15, 2011

Well there's a conundrum

The Swiss Franc is so rock solid, it is "overvalued".
Today, 1 Swiss franc = 1.2737 US dollars.   Really? I didn't know we'd coined thousandths and ten thousandths of dollars.  (lord almighty, I hope it doesn't tweek up above the .005 mark, we'll have to round it up to $1.28)
I'm expecting U.S. dollar denominations in the thousands and tens of thousands a la post World War II Germany.
The Swiss Franc has apparently "run away".
Per  Simone Meier at Bloomberg:
"Even a cup of coffee at Café St. Gotthard in Zurich costs $8.30"
"Switzerland’s currency is 41 percent overvalued against the euro, based on purchasing power parity as calculated by the Organization for Economic Cooperation and Development. That’s “a headache,” according to ABB Ltd."
That'll cut down on your tourism dollar right there, I don't care who you are.
So from what I gather,  Switzerland is trying to figure out how to devalue their currency.
Simple, think PIGS. Portugal, Italy, Greece and Spain. 
Scenic, no? Viva Italia!

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