By John Galt
July 8, 2011
The Swiss are sending a message to the world per this article today from by Agnese Smith of Marketwatch:
From the article:
ZURICH (MarketWatch) — The Swiss Parliament is expected later this year to discuss the creation of a gold franc — a parallel currency to the official Swiss franc, with the fringe initiative likely triggering a broader debate about the role of the precious metal in the Alpine nation.
The initiative is part of “Healthy Currency,” a campaign sponsored by politicians from the right-wing Swiss People’s Party (SVP) — the country’s biggest — that is seeking to capitalize on popular fears about global financial turmoil and inflation to reverse the government’s current policy on gold.
“I can imagine that this will spark some sort of debate about gold and there may be some pressure to accept the parallel currency,” said Dr. Gebhard Kirchgaessner, an economics professor at St. Gallen University. “But it won’t have any real effect on the economy. It seems incredible to imagine that there are people out there willing to buy millions of these things.”
I hate to break this to the good doctor, but if the Swiss create a gold Franc, everyone in Europe, Russia, the Middle East, and the United States will be clamoring to buy it. It will become the Krugerrand of the 21st Century overnight as the most desired currency in existence and act as a huge buffer for the tiny nation against the hyper-inflationary tendencies of its neighbors. The fact that this proposed coinage would be a parallel currency, not a collectible or commemorative, is a signal to the world that the move for small nations not wishing to be married to the irresponsible central banksters fiat fantasies can be achieved and actually strengthen their domestic economies.
Needless to say, this story will be monitored for further developments as it happens.