Swiss initiative to return to gold standard - A Blog from Freemont Group
14 October, 2011
With gold prices approaching $2000 per ounce and paper currencies in peril, the move to return to some sort of gold standard is being viewed as a serious economic strategy. As is often the case, the Swiss are first in line to readopt this prudent monetary policy, which they abolished only 11 years ago.
A campaign called ´Healthy Currency´ is sweeping the nations´ national politics. The initiative aims to introduce a Golden Franc parallel to the current Swiss Franc. Several politicians of Switzerland’s biggest party, the SVP, have given support to the campaign.
Thomas Jacob, the initiator of the Healthy Currency campaign, says he hopes his campaign will give the Swiss people the freedom to choose a completely different currency. If parliament approves of his plans, it would still require a constitutional amendment. If his plans are blocked, he will push for a referendum on the subject in mid-2012.
Meanwhile in Mexico, a lobby is pushing for reintroduction of the silver peso. Hugo Salinas, father of Mexican multi-billionaire Ricardo Salinas, is leading the initiative. Salinas believes that “Mexicans have to save lots of silver, to face the coming readjustments in the US economy,” because “Savings in silver would provide every family with a nest-egg of great importance, as it would consist of coins which cannot be devalued by the State, with a totally liquid value.” Salinas has been campaigning for a silver peso since 1995, but now that economic reality is supporting his argument, he believes the idea can very well become reality in 2012.
Return to a commodity standard is inevitable as confidence in the world’s paper currencies is dwindling. Paper currencies have an average lifespan of 20 years because no government can resist the temptation of the printing press. The US dollar just celebrated its 40th birthdays as a true paper currency since president Nixon left the gold standard in 1971, and it seems to have lost her image of impeccability.
In this time where a single glance at the economics section of a newspaper gives you wrinkles and makes you loose hair there is no doubt that soon some country will have the courage to actually take the first step and return to solid, commodity based money.
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