Swiss Franc Account

Historically the Swiss have achieved stability in realms both political and economic. This is largely due to their position of neutrality and their fixture as a safe haven for international wealth. However, in this time of economic crisis it is precisely that reputation that is putting strain on Swiss businesses. With the already high value of the Swiss franc continuing its upward swing, Swiss manufacturers have found it difficult to conduct business in foreign markets for some time. Recently concerns have grown regarding an increased foreign presence threatening domestic markets. Though businesses and the Swiss National Bank (SNB) are implementing measures aimed at increasing efficiency and lowering costs, thousands of Swiss jobs remain on the chopping block.

Since the beginning of the global financial crisis the Swiss franc has received a great deal of attention. In accordance with their policy of neutrality, Switzerland has abstained from membership in the European Union and the Euro Zone. Therefore, when the value of the Euro began its downward spiral the Swiss franc remained remarkably strong. In fact one could say that it was strong to a fault. Investors the world over rushed to obtain the security provided by Swiss francs causing a massive deflation of the currency. As a result the price of Swiss exports skyrocketed, discouraging foreign nations to import goods manufactured in Switzerland. Conversely, nations importing goods to Switzerland have found themselves able to turn an easy profit when receiving payment in Swiss francs. These profits facilitate lowering prices in Switzerland at the consumer level, drawing Swiss consumers away from goods manufactured at home.

This has proved distressing to Swiss firms finding themselves unable to compete effectively in international and domestic markets. As an estimated thirty-six percent of Swiss firms move 'into the red', solutions are being sought by corporations as well as the SNB,  equivalent of the American 'Fed'. Firms are clamoring for tax breaks and decreased regulation, hoping that lessening government presence would allow them greater freedom in conducting trade and increasing efficiency. The common goal on both sides is to preserve as many Swiss jobs as possible, jobs threatened with future layoffs as outsourcing becomes increasingly necessary to businesses struggling  to keep their heads above water.

The strong Swiss currency reinforces their reputation as shrewd financiers, fitting harmoniously with the common worldview of the Swiss. Valuing their self-sufficiency, the strong franc is a traditional source of pride for the Swiss. Ironically, too strong a currency can prove a curse rather than a boon. In this exceptional case, the famous Swiss diligence appears to have backfired.

This may be particularly surprising to a country wherein the weakening value of the once-mighty dollar is prominently decried. Despite this, America has benefited from the weakened dollar on many fronts. It has made the U.S. more competitive in international trade by lowering the price of our exports. This is well illustrated by the recent free trade agreements made with South Korea, Columbia, and Panama. It has also made manufacturing within the country financially feasible for American businesses, keeping more jobs at home.

http://www.swissinfo.ch/eng/specials/swiss_franc/Swiss_firms_also_face_price_pressures_at_home_.html?cid=31571088 

America Needs Climate Change... Socio-Economic Climate Change

The possibilities behind proliferating renewable energies have been realized by German environmentalists. Distancing themselves from nuclear energy, they have had unparalleled success with green technologies. Though loosened restrictions encourage ventures, another major contributor is the German citizenry. The people and industry of Germany are coming together on a grassroots level to establish a cooperatively funded green infrastructure. This article sheds light on a German movement taking place in the form of cooperatives; German citizens that have come to replace anonymous investors and foreign special interests. This shows German environmentalists to be as economically self-sustaining as the technology they produce.

            The ground is fertile for green innovation. Recent natural disasters attributed to climate change, surfacing fears regarding the safety of nuclear power, the precariousness of fossil fuels and the world economy have proven a potent fertilizer. From this newly fertile ground has sprung the revival of the cooperative in Germany. In the mid 19^th century German cooperatives first sprang to prominence. They functioned to aid small individual traders through unification and elimination of traditional corporate controls. Today cooperatives provide solidarity among entire communities who seek autonomy from global financial institutions. By shunning foreign investors and receiving funding from German cooperative banks, the cooperative community has discovered a way to grow the German economy almost entirely from within; especially valuable in a time of European financial crisis.

Simultaneously, many cooperatives have gained independence from nationwide energy infrastructure by producing self-contained renewable energy sources. The dedicated involvement of the citizenry, especially in southern Germany where one poll states that one in three citizens are involved with cooperatives, reveals a dramatic schism with the American worldview. The Rasmusssen Energy Update shows a majority of 58% of the American public considers climate change a serious problem. Yet whatever their amount of concern, it's indisputable that most Americans aren’t actively involved with this issue. Green industry shows slow growth in the U.S., and subsists mainly on life support from government subsidy. Environmental issues remain divisive in America, more political than environmental. The political nature of the discussion has had a polarizing effect on the people of America, in which a large segment of the population remains unconvinced of the existence of climate change. However, the German cooperative movement has shown that the pursuit of green technology can have economic as well as environmental benefits. To gain the same financial autonomy as the German cooperatives, dependence on foreign fossil fuels in the U.S.A. must be eliminated. Furthermore, as world fuel resources are zero-sum and move closer to depletion daily, the advent of renewable energy is inevitable. Until the American constituency faces facts and takes an active role in forming energy policy , it can never truly gain the independence that all Americans cherish.


Main Source:
http://www.dw-world.de/dw/article/0,,15655243,00.html

Germany and America in Contrast

        The German people seem to be viewed through a two dimensional prism in our country. The focus of the media on Germany tends mainly toward World War II documentaries and Hollywood films full of generalizations. Yet while most Americans would identify Germany with war and giant pretzels, the culture apparent in everyday life is too often lost in the shuffle. Having never traveled there my personal knowledge of Germany is limited to what little information I have gleaned from preconceptions and different forms of media. This includes everything from historical knowledge to very blatant stereotypes. Ignorance shrouds my view of the matter. However the homogeneous cultural background that exists in Germany is in stark contrast with the famously 'non-existent' or perhaps just heavily diluted American culture.

       The fact that the Germans are a people and nation unified by clear cultural ties is highly important to this topic of contrasts. While I cannot claim to know the historical backgrounds behind most German cultural traditions, it is their very presence that is vital. The celebration of Oktoberfest, the rich tradition of beer brewing, the wines of the Rheinland, the ceremonial wearing of Lederhosen; all are easily identifiable as purely German traditions. All symbolize a heritage that unites a country with a national identity. 

       The cultural identity of America, on the other hand, is unclear even for many Americans. This is due to the extremely heterogeneous mixture of peoples within our borders. An outsider might label us as an arrogant and greedy nation. On an individual level, however, the average American family has had all ties of ancestry stripped from them once they've reached the second or third generations. While certain nationalistic traditions endure, secular holidays in this country have become little more than an excuse to drink beer (one passion that we share with the German people). I cannot come close to articulating exactly what it is to be German, yet strangely my ideas on being American are almost as convoluted. My lack of clarity on German culture stems from ignorance, while the confusing ambiguity inherent in our national lifestyle obscures the true nature of culture in America.