So I emailed Jim Rogers this morning to ask him about the comment he made on CNBC regarding the Swiss National Bank pegging the Swiss franc to the euro.
This is what he said on CNBC:
"The move 'will work for a while, but the market will have more money in the end than the SNB,' Rogers, who was the co-founder of the Quantum Fund with George Soros, told CNBC.com."
I emailed him this:
Me: "Really, Jim? The Swiss will run out of Swiss francs?"
This was his reply:
"I guess you still do not understand currencies. As the article said, they can run the presses without stopping which would make the currency lose huge value which would destroy S as a financial center. They might never run out of francs, but that would destroy S1itzerland's main business. Please have someone read the article for you and explain it to you. If you have a blog, please post my answer to you. Thanks." -Jim Rogers
(Note the sarcasm.)
I responded with this:
Me: "So a 1.20 EUR/CHF exchange rate will destroy Switzerland's financial sector? Why didn't that happen when EUR/CHF was 1.68 a few years ago?"
Me: "And why is it so important for a nation of 7 million people to have a huge financial sector that comprises such a big percent of GDP?"
Me: Waiting for a response.