Man Bites Dog: Switzerland Cancels Bond Sales, Because They Are Running Surpluses

Hmmm....amazing what happens when the voters force the government to live within its means.

From Bloomberg(with bold added by OldSouth):
Swiss officials are making decisions their peers in Greece or Portugal envy: Canceling bond sales as a budget surplus reduces the nation’s borrowing needs. Soaring public debt in the 1990s prompted Swiss voters to approve a constitutional amendment requiring that revenue and expenses must balance over an entire economic cycle, though the government may run annual deficits. 

That restraint has paid off, pushing Switzerland’s borrowing costs to the lowest in Europe as investors rush to the safest investments. Switzerland called off bond sales in November and December, saying it didn’t need additional funds to finance the budget. The benchmark 10-year note yields 1.80 percent, compared with Portugal’s 5.48 percent and Greece’s 9.06 percent. 

Let's read that bit again:

Soaring public debt in the 1990s prompted Swiss voters to approve a constitutional amendment requiring that revenue and expenses must balance..

Let's focus in a bit more, for that reader in Washington DC who keeps checking in:

a constitutional amendment requiring that revenue and expenses must balance...

Ya' gotta speak slowly, short sentences composed of short words, when dealing with our friends in Washington. So, let's explain it in terms they can understand. Again.

The Swiss voters said NO to the guv'mint spending more than guv'mint takes in.

'Surplus' means the guv'mint takes in more than it spends.

When the guv'mint stops spending more than it takes in, it has money left over, and the whole country prospers.

Damn! Why didn't we think of that?

And, they retained their national sovereignity by retaining the integrity of their currency.

Greece is, therefore, not their problem.

Damn! Why didn't we think of that?

Damn!