Switzerland is expected to hold a referendum this year, 2017, to decide whether to ban commercial banks from creating money.
Private banks in Switzerland currently create 90% of the money in circulation out of thin air as an electronic book keeping entry and as debt with interest, a much lower figure than the 97% in the eurozone.
The referendum comes after more than 110,000 Swiss people signed a petition for the central bank to be given sole power to create debt free money as a service to facilitate the exchange of products and services in the real economy.
The campaign was led by the Swiss Sovereign Money movement and known as the Vollgeld initiative of whom Francois de Siebenthal is a member and aims to stop financial speculation by requiring private banks to hold 100pc reserves against their deposits.
Sovereign Money is also the only way out of an every growing mountain of debt. Under private creation of money, any money created to pay a debt automatically creates a new debt. Over time, there is so much money in circulation burdened with so much debt that economies collapse. We have now reached this bust point in the regular boom and bust cycles that have afflicted the USA, UK and Eurozone since private banks control the creation of money yet again.
“Banks won’t be able to create money for themselves any more, they’ll only be able to lend money that they have from savers or other banks,” the group said.
I found a handy summary of the campaign by Luca V. Bagiella on the blog of Francois de Siebenthal, a Swiss economist and former banker, which Google Plus is constantly recommending to me, so I took a look.
A translation from French….
“Money is at the heart of our daily live and our economies. It permits the exchange of goods and services. However, the people who really know who produces it and how it functions are rare.
Because it is the majority of citizen’s ignorance about our monetary system that allows finance and the banks to have total control.
As a result, the goal of this round table will be, firstly, to shine the light on the functioning of the creation of meony and debt and, secondly, to present the initiative of full money and its advantages.
The goal of this intiative is to transform our electronic money into full money, into genuine money, issued and guaranteed by the National Bank, as the coins and notes are right now.
At this time, the liquid money produced by the National Bank does not represent more than 10% of the money in circulation, so that the remaining 90% is electronic money created by commercial banks.
The figures on our bak accounts are not genuine money but a recognition of debt or a promise of payment by the bank.
If the bank fails, our credits are lost. With full money, not only will our bank credits not fall in the event of a bank failure, but also the state will not need to save banks because the payment traffic will no longer be affected.
In 1981, the Swiss prohibited banks from printing notes and reserved this right for the National Bank. It is now up to us through our full money initiative to end the monopouly of electronic money in order to adopt to the development of digital technology.”