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What's the story behind the expression 'I'm Switzerland' that one uses when asked to pick between two sides?

Where did that originate?
And how is the expression perceived/taken by those who belong in the countries involved? Is it like a safe expression to use without hurting anyone? A joke maybe? Or was it meant to be offensive?
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drymer · 56-60, M
Switzerland has historically being "neutral" (not taking sides) in world conflicts, that's why.
Casheyane · 31-35, F
@drymer How do your country see that if I may ask? And which country are you from?
drymer · 56-60, M
@Casheyane No big deal. It's just an expression. Being neutral means you got no enemies, nothing wrong with that, in principle (Machiavell would disagree but that's a whole different story...)

There's a whole Wikipedia article on Swiss neutrality, if you're interested:
https://en.wikipedia.org/wiki/Swiss_neutrality

I'm in Canada by the way, although I grew up in South America.