The Swiss Gold Initiative
One of the very few remaining proper democracies in the world will vote on bringing the Swiss Gold back to Switzerland on November 30. In order to have a national referendum on an issue in Switzerland, 100,000 supporting signatures are required. The 'Swiss Gold Initiative' already achieved this requirement in early 2013.
Luzi Stamm, who is an influential member of parliament, representing the biggest Swiss party SVP (Swiss People's Party) started this initiative with two other parliamentarians. A growing number of Swiss citizens have joined in the attempt to force the Swiss central bank to halt all sales of current gold reserves, repatriate all gold back home, and to back any further money printing with 20% of gold purchases- the three major points of the Swiss Gold Initiative.
Of course, the politicians and bankers of Switzerland are squarely against this initiative as it greatly diminishes their hold on power and restricts their ability to continue to debase the Franc by freely printing money and manipulate the markets.
Voltaire said in 1729: "Paper money eventually returns to its intrinsic value – ZERO."
Swiss monetary policy used to be the soundest in the world, but in recent years Switzerland has joined other countries in abandoning a policy of sound money. Switzerland had 2,600 tons of gold in 1999 which was a significant amount in relation to the size of the country. At that time it was decided by the Swiss National Bank- not the people or parliament- to sell 50% of the holding. Most of this was sold at the low of the market just like in the UK.
Of course we don't know what the outcome will be, but Luzi believes that if Switzerland passes this initiative and takes the lead in backing their currency this will lead to a chain reaction in the central banks of other European nations, like Germany and Austria, to do the same. Perhaps the populations of those countries would also start to complain, "Why isn't our money backed with gold like Switzerland?" Perhaps this trend may eventually reach our shores here in America...
In some circles this is a real heated debate, should we or should we not use a gold standard to help stabilize our currency and control inflation. And yet at times our current system seems so easy to use, why complicate things? It's what we grew up with. A gold standard is so long ago it is ancient history. Perhaps a gold standard would help us take our country back from the politicians and put the power back in the hands of the people? What do you think? Gold or no gold?
