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Switzerland
will hold a referendum to decide whether to ban commercial banks from
creating money.
The campaign - led by the Swiss
Sovereign Money movement and known as the Vollgeld initiative - is designed to
limit financial speculation by requiring private banks to hold 100pc reserves
against their deposits.
Not a gold standard:
The Swiss federal government
confirmed on Thursday that it would hold the plebiscite, after more than
110,000 people signed a petition calling for the central bank to be given sole
power to create money in the financial system.
If successful, the sovereign money
bill would give the Swiss National Bank a monopoly on physical and electronic
money creation, "while the decision concerning how new money is introduced
into the economy would reside with the government," says Vollgeld.
A central bank / Irving Fischer standard.
From the Vollgeld initiative site, a
Q&A:
Q: How can the Swiss National Bank
know how much money is needed?
They can’t know.
A: The Swiss National Bank needs
the sovereign money reform to be able to fully control the amount of money in
circulation. The Swiss National Bank
collects the best statistics on the economy, and therefore has the best
overview as to how much money is needed.
They can centrally plan.
Nothing market oriented about this initiative; nothing to
cheer from a free market perspective. The
initiative concentrates even more power in the central bank – instead of decentralized
decisions about digit creation, only the monopoly central bank will be allowed
this task.
The initiative demonstrates (I won’t say proves, although I
am certain this is anyway the case) that it will require force to ensure 100%
reserve (against gold, any commodity, electronic digits or whatever)
banking. It cannot happen absent the
initiation of force by non-market actors.
To put this in place will require voters tasking the government to stand
between willing economic actors and hinder a transaction.
Therefore 100% reserve banking – even against gold – cannot provide
the most relatively stable money and credit system. Inherently a free market – driven by prices
and profit and loss (with all its consequences) – is the best means by which to
provide money and credit in a manner and type desired by the market, and do so
in the most stable manner.
End central banking; end the government’s backing of banks;
end deposit insurance; allow banks to fail.
The solution lies here – not in any preconceived notion of
proper banking.
End the Fed (and the SNB, and all the rest).
BM says: "End central banking; end the government’s backing of banks; end deposit insurance; allow banks to fail.
ReplyDeleteThe solution lies here – not in any preconceived notion of proper banking.
End the Fed (and the SNB, and all the rest)."
This is "pie in the sky" thinking, to my mind. [No offense intended].
If you have governments in the first place, sooner or later you _must_ have central banking [sometimes disguised as a "private" corporation- as is the case with the Fed.]
My point: central [i.e government run] banking is 100% necessary to the functioning of the "government scam".
In itself, it's just another scam, but an essential ingredient in that overall "big scam" called "government".
If the Fed were ever terminated, it would simply be replaced by another [disguised] scam doing exactly the same thing, simply because a central bank is so absolutely essential to the functioning of the modern state.
The good news:
it's not even necessary for the individual to "pine", or hallucinate, or await with baited breath perhaps, for their fantasy: that imagined day in the future which brings the end of the Fed.
Once the individual understands the true nature of the scam, and how it directly effects their own life and savings etc. , it is fairly easy to find ways to protect him/herself from the more or less inevitable financial consequences of that scam, in my opinion.
Regards, onebornfree.
OBF, my comment is intended to describe the proper free-market solution to money and credit; this as opposed to enforcing / requiring a gold standard or any other scheme as maintained by some others within these circles.
DeleteAs to what I do in the meantime, of course I manage my affairs within today's reality.
As to pie in the sky, this is certainly true - even more so if no one ever discusses it. You will, I hope, forgive this guilty pleasure of mine.
Banking???? Few understand how it operates and those who do wish that to continue. If you actually take the time to figure it out, you'll be amazed that the scam could have ever have fooled the whole world. It's now so pervasive that only a monstrous calamity will dislodge it from the grasp of the elites.
ReplyDeleteA change is coming because it must... the current debt-money monetary system is a ponzi scheme and ALWAYS fails. The current debt serfs, us, having exhausted our ability to borrow new money into existence are being replaced. I expected the Asian hordes to be crowned the new debt-serf but the elite, wishing to avoid another costly collapse have chosen a much more aggressive model... why depend on a small segment of the world's population when you can in-debt the entire human race - so they've crowned the IMF as the new source of all the world's debt. The transition to the SDR as the world's new reserve currency ensures just one thing; the continued status of the world's banking monarchs as the top of the pyramid of elites. And, of course, all the rest of us (the 7 billion and growing mass of humanity)get to put on the cloak of debt slave.
And we only have ourselves to blame... because we've largely abdicated our role of responsible citizen to become nothing more than a consumer. And the irony of all ironies, it's the role of consumer that permits the ruling elite to make debt serfs of us all.
It won't last of course but that is little solace to those of us currently alive; unless some sudden revival of moral courage were take residence in the heart of mortal man. Ya'!!! probably not...
But hey, the Swiss initiative is a small first step into a new model. Seems to address the main problem of commercial bank creation of new money - interest and debt. I don't yet know how a monetary system should be structured but I do know that only governments can create interest and debt free money... and that's the only form of money that "works." THE. ONLY. ONE.
Someday...
Praying to the government for salvation from the government. An unfortunate condition, sadly afflicting too many.
DeleteMr mosquito,
ReplyDeleteWhat other entity can create debt and interest free money?
And you should acquaint yourself with the consequences of a debt-money monetary system. As I said, I don't yet know what form a debt/interest free monetary system should be but I do know that's the only one with legs for the long term that prevents exactly what we've got now... a system teetering on collapse to be rescued by an entity above individual governments - enslaving the whole world to a debt-money monetary system.
I'm not really asking you to come up with said model either, unless of course, you've got a better idea. However, you should educate yourself to the real consequences of our present model.
"What other entity can create debt and interest free money?"
DeleteWho says this is an objective? Time has no cost, this is what you propose. It is economic nonsense as well as an escape from reality.
"However, you should educate yourself to the real consequences of our present model."
You and I have exchanged many comments; you have read and commented on many of my posts on this general topic. Either you already know I am educated on this topic, or you are unable to remember things.
My previous comment stands: you pray to the government for salvation from government. This condition should be classified as a mental defect; if ever there was a reason to support the prescription of mind-numbing drugs, it would be to suppress this condition.
Perhaps I've commented one other time, maybe twice but I think you've confused me with someone else(or, I simply don't remember).
DeleteIf you really understood a debt-money monetary system you'd see the need for a change. So, I don't really understand your comment about time, nor your "economic nonsense." As long as I'm praying, pray tell what you mean!
I'll add one more thing... you anti-government types really have no clue about what's going on. If you seriously think that our elected officials are making the critical decisions, then you've swallowed the lie hook, line and sinker. Look up George Carlin's rant about the real role of government in today's world.
We, me included, must share the blame for our current political reality. And it's only the people, informed and committed to real citizen governance who will sweep out the crooks who pull the strings.
Not any time soon I fear... especially not as long as bloggers such as yourself you clearly don't understand the evils of debt-money.
“If you really understood a debt-money monetary system you'd see the need for a change.”
DeleteI see the need for a change from the current system.
“So, I don't really understand your comment about time…”
Yet you comment on issues of money.
Interest compensates for time and risk. Take interest away and you destroy savings – real savings, not funny money (whether interest bearing or not). Destroy real savings and you destroy investment.
“As long as I'm praying, pray tell what you mean!”
Destroy investment and you better pray for those who are not skilled farmers or hunters.
“If you seriously think that our elected officials are making the critical decisions, then you've swallowed the lie hook, line and sinker.”
When have I written any such thing? Why do you bloviate without understanding anything? Read a few things at this site before spouting off; it will save us both some time.
“…especially not as long as bloggers such as yourself you clearly don't understand the evils of debt-money.”
Your problems can all be traced to this earlier statement: “I don't yet know how a monetary system should be structured…”
Truth be told, no one does. However you are certain it cannot include interest or debt money or whatever.
I am certain of something also: the market will derive the best answer; the market will provide the best regulation.
I say end central banking and let the market decide. You say end central banking and let the government decide. You do not see the contradiction inherent in your position.
Therefore, this is our fundamental difference. You, like those masters of central banking and debt money, are just one more in a long line of central planners. Naively, you believe they can be controlled if entrusted with such awesome power; I do not.
History has proven me right 99 times out of 100. Only the Byzantines somehow stuck to a reasonable gold standard for the better part of 800 years – still not market controlled, but reasonable.
You can have those odds. Want to bet?
My friend, seriously????
ReplyDelete"Interest compensates for time and risk. Take interest away and you destroy savings – real savings, not funny money (whether interest bearing or not). Destroy real savings and you destroy investment."
You clearly do not understand the whole debt-money system. Find youtube vids by Mike Maloney, or Damon Vrabel... your education begins there.
But thanks for expounding, it's made clear that I'm conversing with a 12 year old; I especially liked your reference to gold, that's allowed me to place you in the camp of hard money morons, you got a ways to go before coming to grips with the way the world really works. So, time to get going.
“I especially liked your reference to gold, that's allowed me to place you in the camp of hard money morons”
Delete“Find youtube vids by Mike Maloney, or Damon Vrabel... your education begins there.”
Mike Maloney:
http://goldsilver.com/about-mike-maloney/
Interesting, a site about gold and silver….
Is he a moron? From the site:
“With that newfound understanding, Mike invested his family's wealth 100% in gold and silver, and remains 100% invested in them today. "For 2,400 years as people have lost faith in fiat currencies, they have turned to 'real money,' gold and silver," Mike says.”
Yes, he is a moron – imagine, calling gold and silver real money.
Damon Vrabel:
http://economicedge.blogspot.com/2010/05/damon-vrabel-coming-crash-usury-and.html
From this article:
“Controlling others and living off their backs by forcing them to borrow with interest in order to have any money is called usury (this does not include standard, self-liquidating bank loans to businesses to fund production).”
“Usury” (aka “interest”) is bad, but “self-liquidating bank loans” (aka “interest”) is good. Go figure.
These two have not helped your case, albeit for different reasons.