Switzerland's getting into a currency war with us? Brilliant!

Spend, spend, spend.

It's sort of like the Baader-Meinhof Phenomenon – you hear a relatively rare phrase once, and then it starts springing up all over the place. Today's is "currency war".

At the Telegraph, Ambrose Evans-Pritchard has uncovered evidence that Switzerland and the UK are "effectively fighting a 'low intensity' currency war against each other". He writes:

It seems you can’t debase your coinage these days even if you try.

The Bank of England is straining every sinew to drive down sterling with quantitative easing, and what happens?

The Swiss National Bank trumps Threadneedle Street with an outright blitz of Gilt purchases. They just print it, and buy.

Switzerland is one of the most forthright currency manipulators out there at the moment, as it struggles to hold its franc above 1.20 to the euro. This chart, from the ECB, shows the effect of that fight:

Although currency speculators have been battering at the floor, the Swiss central bank has held to its promise (but it did drop down to 1.1997 francs for a few minutes back in April last year) by buying a metric shittonne (technical term) of eurobonds. Now that it owns so many of those, it is trying to diversify its holdings into other currencies, "allegedly into Aussies, Loonies (Canada), Scandies, Won?, Real? but above all pounds" according to Evans-Pritchard.

The Swiss are doing it because a weaker currency, particularly relative to the Eurozone, is good for them – it boosts deficits and interest rates, both things which ought to keep them out of recession. But we want the same thing. Hence: currency war.

In the US, meanwhile, some economists have argued that America needs to get tough on currency manipulators. The Washington Post's Dylan Matthews writes:

In a new working paper, Joe Gagnon and Fred Bergsten at the Peterson Institute argue not just for import tariffs like those Schumer advocates, but for a full-frontal assault on countries that are manipulating their currencies… Specifically, they want the U.S. to offer the eight worst currency manipulators — China, Denmark, Hong Kong, Korea, Malaysia, Singapore, Switzerland and Taiwan — an ultimatum: Stop manipulating, or else we’ll do the following:

Buy up exactly as many assets in their currencies as they have in ours… tax the earnings from dollar-denominated assets as punishment… treat currency manipulation the same way we treat export subsidies for the purposes of imposing retaliatory tariffs [or] take the manipulators to the World Trade Organization (WTO).

The first of those options is an archetypal currency war. Gagnon and Bergsten argue that making that threat would "currency manipulation, make the dollar less expensive, and thus promote U.S. exports"; the standard refrain of those entering currency wars.

And Matthews offers the standard objection:

The risk is that Gagnon and Bergsten’s policies would only provoke the targeted countries, leading them to respond with still more manipulation and/or tariffs on U.S. goods, setting off a full-fledged currency and trade war that just leaves all parties worse off.

Except that that's not really true (well, the trade war part is). A full-fledged currency war – whether it's between America and all eight of its named "manipulators" or Britain and the Swiss – is indeed a zero-sum game when it comes to the actual level of the currencies. Both GBP and CHF cannot weaken against each other at the same time, definitionally.

But while the war is pointless, the act of fighting it could be a good thing. The Atlantic's Matthew O'Brien writes:

The downside of devaluation is that no country gains a real trade advantage, and weaker currencies means the prices of commodities like oil shoot. But and here's the really important part devaluing means printing money. There isn't enough money in the world. That's the simple and true reason why the global economy fell into crisis and has been so slow to recover. It's also the simple and true reason why the Great Depression was so devastating. We know from the 1930s that such competitive devaluation can turn things around.

War is good if it creates more of something you want. A "charity war" between friends is good because it leads to more donations. A currency war is good because it leads to more money. If war is politics by other means, a currency war is stimulus by other means.

Think of it by analogy to fiscal stimulus. Sometimes, a government decides to do that directly. But just as frequently – say, during the Second World War – it embarks on a massive deficit-funded spending programme because it feels it has to, and it just so happens to be macroeconomically beneficial as well.

So please, Switzerland, keep buying British bonds. It will force the Bank of England into making the moves it ought to have done a long time ago.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Forget sniffer dogs. To stop drug abuse in prison, fight the real enemy – boredom

Since I left prison in 2011, the system has had £900m sucked out of it. No wonder officers are struggling to control drug use.

It’s rare to go a day in prison without someone offering you drugs. When I was sentenced to 16 months in 2011, I was shocked by the sheer variety on offer. It wasn’t just cannabis, heroin, and prescription pills. If you wanted something special, you could get that too: ecstasy for an in-cell rave, cocaine for the boxing, and, in one case, LSD for someone who presumably wanted to turn the waking nightmare of incarceration up to eleven.

Those were sober times, compared to how things are today. New synthetic drugs – powerful, undetectable, and cheap – have since flooded the market. As the Ministry of Justice itself admitted in its recent White Paper, they’ve lost control: “The motivation and ability of prisoners and organised crime groups to use and traffic illegal drugs has outstripped our ability to prevent this trade.”

The upshot is that, rather than emerging from prison with a useful new trade or skill, inmates are simply picking up new drug habits. According to a report released on 8 December by drug policy experts Volteface, on average 8 per cent of people who did not have a previous drug problem come out of prison with one. In some of the worst institutions, the figure is as high as 16 per cent.

Why are people with no history of drug abuse being driven to it in prison?

There’s the jailbreak factor, of course. All prisoners dream of escape, and drugs are the easiest way out. But, according the report, the most common reason given by inmates is simply boredom.

Life when I was inside was relatively benign. On most days, for instance, there were enough members of staff on duty to let inmates out of their cells to shower, use a telephone, post a letter, or clean their clothes. Sometimes an emergency would mean that there might not be enough hands on deck to escort people off the wing to education, worship, drug therapy, healthcare, family visits, work, or other purposeful activities; but those occasions were mercifully rare.

Since then, the system has had £900m sucked out of it, and the number of operational staff has been reduced by 7,000. All such a skeleton crew can do is rush from one situation to the next. An assault or a suicide in one part of the prison (which have increased by 64 per cent and 75 per cent respectively since 2012) often results in the rest being locked down. The 2,100 new officers the MoJ has promised to recruit don’t come anywhere close to making up the shortfall. Purposeful activity – the cornerstone of effective rehabilitation – has suffered. Inmates are being forced to make their own fun.

Enter ‘synthetic cannabinoid receptor agonists’, or SCRAs, often more simply referred to by brand names such as ‘Spice’ or ‘Black Mamba’. Over 200 of them are available on the international market and they are, today, the most popular drugs in British prisons. A third of inmates admitted to having used ‘Spice’ within the last month, according to a recent survey conducted by User Voice, and the true figure is probably even higher.

As one serving prisoner recently told me: "It's the perfect drug. You can smoke it right under the governor's nose and they won't be able to tell. Not even the dogs can sniff it out."

The combination of extreme boredom and experimental drugs has given birth to scenes both brutal and bizarre. Mobile phone footage recently emerged from Forest Bank prison showing naked, muzzled prisoners – apparently under the influence of such drugs – being made to take part in human dog fights. At the same establishment, another naked prisoner introduces himself to the camera as an ‘Islamic Turkey Vulture’ before squatting over another inmate and excreting ‘golden eggs’, believed to be packets of drugs, into his mouth. It sounds more like a scene from Salò than the prison culture I recall.

The solution to this diabolical situation might seem obvious: but not to Justice Secretary Liz Truss. Her answers are more prison time (up to ten years) for visitors caught smuggling ‘spice’, and new technology to detect the use of these drugs, which will inevitably fail to keep up with the constantly changing experimental drugs market. Earlier this week, she even suggested that drug-delivery drones could be deterred using barking dogs.

Trying to solve prison problems with more prison seems the very definition of madness. Indeed, according to the Howard League for Penal Reform, over the last six years, inmates have received over a million days of extra punishment for breaking prison rules – which includes drug use – with no obvious positive effects.

Extra security measures – the training of ‘spice dogs’, for example – are also doomed to fail. After all, it’s not like prison drug dealers are hard to sniff out. They have the best trainers, the newest tracksuits, their cells are Aladdin’s Caves of contraband - and yet they rarely seem to get caught. Why? The image of a prison officer at HMP Wayland politely informing our wing dealer that his cell was scheduled for a search later that day comes to mind. Unless the huge demand for drugs in prison is dealt with, more security will only result in more corruption.

It might be a bitter pill for a Tory minister to swallow but it’s time to pay attention to prisoners’ needs. If the prodigious quantities of dangerous experimental drugs they are consuming are anything to go by, it’s stimulation they really crave. As diverting as extra drug tests, cell searches, and the sight of prison dogs trying to woof drones out of the sky might momentarily be, it’s not going to be enough.

That’s not to say that prisons should become funfairs, or the dreaded holiday camps of tabloid fantasy, but at the very last they should be safe, stable environments that give inmates the opportunity to improve their lives. Achieving that will require a degree of bravery, imagination, and compassion possibly beyond the reach of this government. But, for now, we live in hope. The prisoners, in dope.