I hope that you are well, happy and enjoying a delightful winter. After a slow start, the snow finally arrived in Switzerland. This week, Zermatt was cut off by an avalanche that blocked the train tracks. On the other hand, Zürich, in the German-speaking part of Switzerland is very orderly: they keep the snow where it belongs - in the Alps.

Reader Query: “So is there is a lot of dreary gray weather and rain in Zurich?”
Answer: “Well, eh, hmm, ah...”

Switzerland is, of course, an island (surrounded by land) in the center of Europe. Locals believe that Switzerland, by exuding fiscal stability and financial responsibility, stands in stark contrast to the profligate and unsustainable spendthrifts on the rest of the continent. (Sometimes citizens forget the €60 Billion bailout of UBS.) Reflecting Swiss rectitude, as the €uro Crisis unfolded, the value of the Swiss Franc climbed.

“This,” I thought, as I watched the Franc rise, “is great.”

Unbeknownst to me, Philipp Hildebrand, head of the Swiss National Bank (SNB), had different thoughts: “This is very bad: the Swiss economy will suffer.”
However, unlike me, Hildebrand was positioned to act. In order to reduce the value of the Franc, he announced that the SNB would purchase Euros in ‘unlimited’ quantities. Naturally this provoked a discussion with Nazy.

Flashback

“Why would anyone want to reduce the value of their money?” Nazy asked.
“Stupidity?” I suggested.
“He’s supposed to be the world’s greatest economist...”
“Second greatest.” I interrupted.
“Second?”
“I believe that a Dr.Darius Martin at the American University of Beirut..”
“Right. But Hildebrand is supposed to be the world’s greatest central banker..
“... since Alan Greenspan. Remember how well Al did? There is no way that Switzerland can buy ‘unlimited’ amounts of Euros indefinitely. Sometime, somewhere, someone will call the bluff. When that happens, the whole country will suffer. The entire business makes no sense whatsoever. Tying the Franc to the Euro is like stowing away in the Lusitania ”

End Flashback

It turns out that Hildebrand was thinking something more up-close and personal than the Swiss economy. Three weeks before his SNB unilaterally devalued the Franc, Kashya Hildebrand bet $500,000 that the US dollar would increase ..”
“Kashya Hildebrand?”
“Philipp’s wife.”
Bet?” Nazy asked.
“Right! She bought a futures contract on the dollar - essentially making a bet.”
“And?”
“Three weeks later, after her husband devalued the Franc, she made a $70,000 profit.”
“Isn’t that insider trading?”
“Philipp says that his wife is ‘very independent’.But, she did the trade from a joint account.”
“This is not going to end well.”
“Depends how you define ‘end well’. Philipp, forced to resign, got a one year severance package and unlimited meetings with the criminal investigation service. Kashya, forced to, eh, profit, got a lot of publicity for her art gallery. She also said that the press picked on Philipp because he is ‘a handsome man’.” [Note: Al Greenspan did not have that problem.]
While the SNB machinations played out, Darius prepared for his invited seminar in Marburg, Germany. Whereas I would have rapidly selected a few salient focus points, Darius...
“... wants to know everything about the subject,” I explained to Nazy.
“That’s nice.”
“His approach will take forever.”
“But, unlike you, he’ll know what he’s talking about.”
“I worked at HP for many years, Nazy. Knowing what you’re talking about is over-rated and unnecessary.”
Darius ordered books from Amazon (they didn’t arrive in time), checked out books from the local university library and found material on the internet. He created an immense and impressive intellectual foundation. He was ready to begin ...
“... finally!” I noted. “You’ve got enough material for a Ted talk.”
“Dad...”
“Or an acceptance speech for a MacArthur Award.”
“The talk is about economy in the Arab world. I wish I’d started earlier.”
On top of a huge pile, I spotted a book (Mesopotamia Economics in 1700 BC) “The only way you could have started earlier, Dar, was to interview Adam and Eve about serpents and risk.”
Foundation complete, Darius began creating lecture notes on the train to Germany. As I predicted (and expected) his lectures were very well received. Darius, back in Zurich, is getting ready for his flight back to South Africa.
Normally, his departure marks the official end to our holiday season. But..
“The Christmas cactus is blooming,” Nazy announced.
“It’s too late, my dear.”
“So?”
“So don’t reward it by fawning and proclaiming beauty. For my part, I’m withholding nitrogen fertilizer and water.”
“It’s a cactus, Dan. She won’t miss water.”
“She? Maybe I should move it into the aquarium.”
“While you’re at it, have you seen the Amaryllis?”
“We bought it right after Thanksgiving. It didn’t do anything..”
“... until now.”
“Who selected that bulb?” I asked.
“Why are you asking?”
“I’m pretending to be a presidential candidate. I want to assign blame.”
Finally, on the topic of Presidential candidates. Trying to keep up, I’ve followed the follies from here. I’m somewhat befuddled, bewildered and bemused by the American fear of becoming ‘like Europe’. (Gasp!) Here, the federal budget is in surplus, the crime rate is low, the corrupt banker was forced to resign (and may end up in jail), tax rates are low, the Army makes knives (not wars), the air is clean and the police are (mostly) polite. It is true that many locals speak multiple languages. I wonder if Newt would exorcise me if he heard me speaking German.
“You? Speaking German, Dan? We don’t have to worry about Newt hearing that.” Nazy always gets the last word.