Gold Swiss Franc Proposed; Would End Fractional Reserve Banking

Posted on Aug 10, 2011 in Economic News

TruthisTreason.net – Kevin Hayden

Source: Forbes via Cryptogon.com

Now, in Switzerland, efforts are underway to create an official Gold Swiss franc (GSF) with a set of coins, each with a fixed content of gold. The proposed constitutional change would permit private institutions to issue an unlimited number of coins whose appearance, content and weight of gold, and definition would be under the supervision of the Swiss government.

Hayden’s Note:

Brilliant.  As stated over at Cryptogon, I’m not real savvy on the idea of allowing credit to be issued, but overall, I think this would be a great move for everyone. 

For example, the smallest coin would have a face value of 1 GSF and have 0.1 grams of gold in its center, similar to today’s bi-metallic euro coins, and be worth—at today’s price of gold, about $4.00.

Five, 10, 20 and 50 GSF coins would have 0.5, 1.0, 2.0 and 5.0 grams of gold and today would be worth approximately $20, $40, $80 and $200 respectively. Gold Swiss franc bank notes are conceivable, as are GSF bank deposits, but they would have to be 100% backed by gold held by the issuing institution. Credit transactions would be legal, but fractional reserve credit would be forbidden under Swiss law. (Good!)

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