In the Long Run Long-Term Government Bonds Are Safe, But We Are a Long Time Dead

Earlier in the year the Swiss National Bank, Switzerland’s central bank, released its latest report. While reading the news covering the bank’s financial results, I was surprised twice. First, it turned out that Switzerland’s central bank still has its stock trading on the SIX Swiss stock exchange. Now that’s what I call Die-Hard Capitalism! Second, I was surprised by the reaction of many observers to the financial results reported by the SNB. They were virtually shocked that it reported the largest loss – 132 Swiss francs (143 billion US dollars) – in its 115-year history (see Reference 1 below). Switzerland…...