Will The New Swiss Referendum Reign in the Banking Beast, or Create a New Monster?
from The Wealth Watchman Another Shake-Up Attempt As we head into 2016, the global financial system continues to teeter all around us. Years of virtually zero-percent interest rates in the US, along with stagnant rates the world over(accompanied by chronic unemployment), have made many do a complete rethink of what money and currency is, what it should be, and how it should be created. These questions must be considered by any populace longing to be free, and who wish to determine their own destiny. For too long, the oligarchs in our world have called the shots, and determined those things for us, without ever asking us if that’s what we wanted. That’s why when I recently read this headline about how a European country is attempting some very serious banking & monetary reforms, I was very encouraged.
If you think that this headline sounds like a big deal, it would be in some ways. Here’s what it would do. Swiss Sovereign Money Initiative The proposal that the Swiss people will be voting on(at a time yet to be determined) would seek to wrest the disastrous control that commercial banks have over creating currency, and put 100% of it in the hands of the Swiss National Bank. The Swiss Sovereign Money Initiative’s(SSMI) reasoning for this referendum can be found at the link here, and I do encourage shield brothers to go and read it. The SSMI’s main goals would be to: 1) End fractional reserve banking, by requiring all the private banks to keep 100% of deposits in reserve. 2) Give the Swiss National Bank total control over the creation/issuance of debt-free currency instead. As many shield brothers know, in the modern, fractional-reserve banking system, the private banks largely control the issuance of new currency. These banks create new credit/currency out of thin air as they draw upon the customer loans in their vaults, to back new bank loans with. They’re able to do this because they’re only required to keep a small percentage of customer deposits in their vaults, to satisfy depositor demands. Sometimes banks carry as little as 10% of their cash deposits on hand(or even less) to backstop all their loans. In other words, this means they often loan(and thus, create) 10 times as much capital as they have in the vaults…from nothing! It’s an utter scam, that creates a parasitical merchant class, which drains the rest of society, by causing booms and busts. It also means the banking sector ends up being the receiver of very lopsided subsidies from the government, in order to keep it paid and propped up. Subsidizing private banks, at the expense of a nation’s people, is one of the most wicked social ills in our world today. It is this subsidy, this monopoly, which causes the speculative lending, the market rigging, the wars, the economic booms and crashes….and most importantly…has led to the rampant globalism(and erosion of freedom and sovereignty) we now see. This problem has led to an extremely powerful banking class in Switzerland, where, according to the SSMI, roughly 90% of Swiss currency(which is digital), is created by those commercial Swiss banks. 90%! This gives ridiculous power to the UBS’s, and the Credit Suisses across their landscape, to dominate everything. This SSMI voter initiative would strip much of that power away from those private banks, by requiring them to maintain 100% deposit reserve ratios. In other words, commercial banks could not create “deposits/credit” from thin air, but would be restricted to the deposits they have on hand from savers, or from other banks. Forcing banks back to a 1 to 1 ratio would certainly take the bite out of predatory lending practices, it would do much to reign in the boom/bust cycles in their economy, and it would reduce the banking class back to a manageable power and influence within their society. Those would be huge positives. I like the ideas of eliminating fractional reserve banking. At the very least, commercial banks should be able to discover what the market’s tolerance of reserve ratios would be without central banks to backstop them(as Scotland’s banking system once did). However, in order to prevent a new banking cartel from emerging, a 100% reserve ratio would likely work best. However, though there’s alot to like about this voter initiative, there’s just one big problem with the entire proposal, and you may have guessed what it is… Out of the Frying Pan, Into the Fire The Swiss National Bank, whom the Swiss people are now trying to give 100% control over their nation’s currency issuance to…is also a private bank! If you remember nothing else I ever tell you, please remember that one of the greatest illusions/lies in our world today, is that: Central banks are non-profit organizations with deep hearts, who only care about charity and the ‘greater good’ of their constituencies. Believe me, nothing could be further from the truth! For instance, the Federal Reserve in the United States is as “Federal” as the Federal Express(FedEx)! It is a private, for profit bank, which loans currency into existence to the US Government(who borrows it, with interest attached). This means the Federal Reserve ends up owning the government, owning the economy, owning the labor of the citizens(as collateral to repay the loans), and owning the entire political system itself. For crying out loud…the Federal Reserve has shareholders(as does the SNB)! Most of those shareholders are….you guessed it….the largest private, commercial banks in the world! The Federal Reserve exists to backstop and rubberstamp whatever loathsome, criminal activities its primary banks are engaged in, and those commercial banks(in return) exist to help steer economic & monetary policy, as well as rig markets, in order to keep the monopoly power of issuing US dollars(as a public debt) firmly in the Federal Reserve’s control. It’s a symbiotic relationship of utter toxicity, only made possible through government-enforced monopoly, war, and a massive crime spree. The exact same is true of the Swiss National Bank(SNB)! The SNB only came into a limited existence around 1907, but(just like the Fed) didn’t receive its first mandate to create small-denominated currency notes in a serious way until roughly 1914. Why 1914? Because World War I was being fought, and wars of that size cannot be fought without massive debts! No government had the capital to pay for such wars up front, with cash on the barrel-head. Thusly, the banking class stepped in to accommodate rival governments in their bid to blow up as much as possible for as long as possible. The “Great War” was made possible by “public banks” like the Fed(created in 1913) and the SNB. Ron Paul once correctly noted: “It is no coincidence that the century of total war coincided with the century of central banking”. Truer words are seldom spoken. Think about it: These central banks made the carnage possible. They amplified the scale in which wars could be fought. They indebted the besieged peoples of those wars to the very same powers that enabled those wars in the first place. If the problem of monetary issuance is a lack of ‘moral authority’, believe me, central banks have the least moral authority on earth! They’re all neck-deep in criminality and only serve the most demonic individuals in our world.