Swiss Gold Referendum a historical vote without the power of the elites?
On November the 30th the Swiss people will vote on backing their Swiss Franc by 20% gold. First do they have enough Gold to sustain the current gold price in their local currency or will the Gold price in Swiss Franc go through the roof. Will Switzerland need to request gold back from their partners storage vaults around the world?
Lets take a look at the potential outcomes of the Swiss Gold Referendum.
74703200000 CHF 20% of M0 2118.98 CHF Gold 3027,12 CHF Gold 70% of Gold reserves in Swiss.
113287800000 CHF 20% of M1 3213.45 CHF Gold 4590,65 CHF Gold 70% of Gold reserves in Swiss.
178503200000 CHF 20% of M2 5063.31 CHF Gold 7233,30 CHF Gold 70% of Gold reserves in Swiss.
188398600000 CHF 20% of M3 5343.99 CHF Gold 7634,28 CHF Gold 70% of Gold reserves in Swiss.
Oz Gold Total Reserves 35254237 70% in Switzerland Total Reserves 24677966
10% at Bank of Canada and 20% in Bank of England.
1,122.89 current gold price in CHF Oz.
Seeing these numbers above tells us on the high end you can make 679% Return on your physical gold and on the low end 188% over night! So you could make a smart move owning physical gold. Remember Silver could also make the similar move together with the gold price.
What is the history of gold? Currencies have been in several cycles throughout history being backed by gold or not. Here is the history of today’s world reserve currency being backed by gold since 1776. http://en.wikipedia.org/wiki/History_of_the_United_States_dollar
The US have seen three different FIAT Currency Central Banks.
The US have had several Central banks 3 of them that issued FIAT currency and 3 that had a gold/silver/other commodities standard backing them. At one time in the 1860’s one southern currency was backed by cotton and the cotton planters property which means slavery. That makes us think about how todays debt based system is based upon us being half slaves being forced into work in order to pay off our debt. We need to work longer hours and many people in the US and the rest of the world are being forced to work 2-3 jobs in order to keep themselves afloat.
I believe FIAT Currencies combined with Fractional Reserve Lending System by banks in a breach on human rights. You can try to argue with that, but when there will never be enough debt to pay off the existing interest and those who are on the low side of the income ladder are at a place when the new debt supply runs out they are the ones getting caught holding the bad debt and loosing their jobs not affording their mortgage, credit card and student loan debt payments. Is that fair that someone at the top could borrow billions for 0-3% interest while you either can choose from a credit card at 17.99%+ and payday loans up to 2000%.
Then the tax system is rigged against you as well. That is for another blog post.
Back to the Swiss Gold Referendum!
So what is some possibilities and causes after a Majority YES vote in Switzerland at the end of this month?
First of all if it happens now the Swiss people especially the workers and those with the least money can reap the massive benefits of a super strong currency. It is true wealth creation for the people.
Of course their currency is now super expensive so exports would fall, but Switzerland is not the biggest exporter. They would be able to buy a lot of assets in other countries. A 20% Gold Standard will mean that Swiss governments and corporations can buy very cheap products from example countries who are moving the wrong way like Japan. More Toyotas, Samsung products for Swiss people super cheap.
On the other side globally can it cause a global move towards a gold standard for every country? Of course it can, but countries like my residing country Canada and my country of birth Norway who has almost zero gold reserves this move can become devastating to their economies.
Can it start wars? Of course it can. No one hates gold more than modern day bankers and central bankers who wont be able to fit their fractional reserve banking as they will be restricted of money printing. A 20% gold standard is not enough in my mind to protect yourself against the hunger for wealth out of thin air bankers as there is money to play with that are not backed. Fractional Gold Standards have shown throughout history to be flawed as the banking system will still be able to charge interest on newly printed money then creating more money inflating the money supply without increasing the gold value and you will have the 40’s and 80’s all over again and the cycle of fraud by bankers charging interest will continue.
Only a 100% backing would prevent them from creating money out of thin air? hmm. maybe not, but it would be caught very soon. We should outlaw interest charges on loans like the Islamic Banking System!!
That way you cannot print money out of thin air charging interest continuing the Ponzi scheme. A natural increase in gold supply could give the possibility to print more currency as population grows so people have easier access to money and can participate in the economy.
Are you for or against gold? I am for and hope this vote can turn to a YES, but the establishment will fight tooth and nail to their FIAT grave to stop people from voting yes. All I know it will be some interesting weeks ahead and maybe this could be the black swan event or snowflake that can start the monetary avalanche world wide.
The move by the Swiss people can be historical and if it happens all I know is that I will buy some Swiss Franc in the coming weeks. Remember this is my opinion and not an investment advise as I am not a certified financial advisor.
The move can also mean the death to the IMF’s global currency SDR’s or maybe it is an underlying cause in the making so the IMF can enact a gold standard by adding Swiss franc to their currency basket backing the Special Drawing Rights or World money.
Switzerland is of course the land of the ultra rich and maybe they can steal some of the rich people’s gold deposits in order to not make their Swiss franc to over expensive?
What do you think will happen after a potential yes vote? Comment or share below, got to our facebook page, twitter account or send me an e-mail.
Lets talk gold!
John Thore Stub Sneisen
The Economic Truth