Swiss bank notes

Negative interest rates, deflation and strong currency make people’s mattress the preferred savings vehicle. Greeks and others from the Eurozone collecting Swiss franc notes are adding to the demand. A safety deposit box in Zurich can be rented without opening a bank account.

1000 chf


China slowdown that has been underway for four years and has been underestimated, especially by commodity producers who had over-extrapolated growth rates at the peak.

perspectives croissance Chine

Deflation in Switzerland

Switzerland’s deflation worsened recently – no matter how one measures it. This is the price of an overly strong currency. Swiss firms must be itching to move more operations abroad.



Here is the value of one Venezuelan bolívar in US cents. The nation is introducing larger denomination notes (basically adding zeros). This remands of Zimbabwe.


Struggling Switzerland

In Switzerland, government bond yields remain firmly in negative territory as deflation sets in. Here is the 10-year yield. The government is making money on its “interest expense” category – time for some fiscal stimulus?



Turning to China, Credit Suisse shows us which nations are most impacted by China’s devaluation – both as competitors as well as exporters to China.


Here is why some argue China will not go through with a significant devaluation. A weaker yuan increases the debt burden on China’s firms who borrowed in dollars.

China debts