Swiss want to re-introduce gold franc

The freedom-lovers of Switzerland have a solution to the global monetary crisis.  They want to protect their citizens from the current destructive monetary hyper-inflation.  We have been punting this as a solution for some time.  If the Swiss introduce a competing gold franc to the current Swiss franc (CHF), it may just get other governments to take this idea a whole lot more seriously.  Let’s hope this topic can get in front of Governor Gill Marcus at the Reserve Bank.

The Swiss were the last off gold, in 2000, and will most likely be the first back on.  No wonder they are one of the wealthiest and freest nations in the world, these guys get it!

July 8, 2011, 4:12 a.m. EDT

Swiss Parliament to discuss gold franc

Right-wing party seeks way back to gold standard

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.”

Switzerland, which in 2000 became one of the last countries to decouple its currency from gold, is not the only place to contemplate a change in the precious metal’s role amid controversy over government involvement in the economy. In March, Utah became the first state in the U.S. to legalize gold and silver coins as currency, while similar legislation was considered in Montana, Missouri, Colorado, Idaho and Indiana.

“I want Swiss people to have the freedom to choose a completely different currency,” said Thomas Jacob, the man behind the gold franc concept. ”Today’s monetary system is all backed by debt — all backed by nothing — and I want people to realize this.”

One Response to “Swiss want to re-introduce gold franc”

  1. Bokkeman says:

    How would this work? Would there be a continuously variable exchange rate between the regular franc and the gold franc, as a function of the ruling gold price?
    In our case, how would this be different from the Kruger rand, considering that it is already legal tender – though I wouldn’t like to go buy bread with one. Imagine a “gold rand” – they’d be so tiny, merchants would have to have microgram scales sensitive enough to accept these for payment!