Tag Archives: Switzerland

Deflationary consumer attitudes: Beds made of hay are latest hotel craze in Europe.


Ultimately deflation is rooted in consumer attitudes toward taking on more debt for speculative and consumption purposes. When the proverbial consumer finally reaches the point when he is no longer capable of taking on more debt, an anti-deflationary mind set becomes entrenched and no Central Bank in the world with all its stimulative programs can kick start spending and encourage businesses and individuals to take on more debt. It is not the levels of debt that are catastrophic and lead to its deflation, but it is the inability or unwillingness of debtors to take on more debt is what spells doom for the finance “industry” and the rest of so called economy, which in reality is just a consumption mirage based on fiat money that supports inordinate levels of debt. The point of catastrophe has been reached and we are now gleefully deflating. Deflation can take many forms, such as walking away from your negative equity house, cutting your credit card debt, not being able to get a loan from a bank, or from booking a room in a Hay Hotel. This is a sign of times and only confirms the deflationary trend that, hopefully, will take a very firm hold and straighten this world economy for good.

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Japanese bonds and Swiss National Bank err on the side of deflation.


Unlike Government orchestrated propaganda campaign to proclaim imminent recovery, the Government bonds investors and Central Bankers know that deflation is no where near the end. Both Japanese Government bond prices and Swiss National Bank officials tells us – deflation is here and not going away.

Swiss supply prices drop highlights deflation risk.


Swiss supply prices posted their steepest decline in 23 years in June, highlighting once again the risk of a deflationary spiral of falling prices and declining demand in the Alpine economy.
The steep price drop will also keep the Swiss National Bank on its toes in its fight against deflation, which include interventions to stem a rise in the Swiss franc, economists said.

Europe digs its economic grave while the ECB answers to no one.


You cannot have an economic growth without natural population growth. We can’t seriously believe that by importing millions upon millions of culturally and economically incongruous third world laborers and their families European economy can somehow continue to grow. Those folks are not big spenders, and more often then not, they subtract from an economy more than they add due to their overwhelming propensity to depend on public assistance.

Switzerland’s central bank SNB is fighting to prevent deflation. Debases the Swiss Franc.


Switzerland’s currency policy ties in with a monetary policy that aims to prevent deflation from becoming worse. The SNB has almost trebled the monetary base in the past year. But the money isn’t being put to use.