Lessons in creditility, part II...

...Swiss Style.

Now read these two Lessons in credibility posts and ask yourself "in what currency would I place investments?"

What a difference between Central Banks.

ZURICH, Jan 20 (Reuters) - The Swiss National Bank is ready to pull out all stops to avoid deflation and may use unlimited foreign exchange interventions and even a temporary fixed currency regime, the SNB Vice-Chairman Philipp Hildebrand said on Wednesday.

Following are key sections from his speech held in German. (The speech abstracts were translated by Reuters and are not official SNB translations):

DEFLATION
"Real deflation has to be avoided at all costs."
"Avoiding deflation is conceptually more difficult than the fight against inflation."
"A central bank has instruments at its disposal to supply the economy with liquidity and stimulate it if necessary even with short-term interest rates close to zero."
"The further use of instruments is not without risks. The national bank will carefully asses if and to what degree they will be used. We remain committed to a policy that sticks to the goal of price stability and communicates clearly and openly. This means:
-- "The national bank states publicly and clearly: Deflation is just as undesirable as inflation.
-- "The national bank can and will continue to provide liquidity -- as much and for as long as needed.
-- "The national bank will reduce this extra liquidity as soon as it is no longer needed, i.e. before it can create inflationary effects."

"We are well aware that the road we are taking decisively in fighting this historical crisis has long-term risks. At the same time we are convinced that the risks attached to not taking this road would be much bigger."