Switzerland Gold Referendum A Healthy Conversation — Ron Paul

(Kitco News) Although it is unlikely Switzerlands gold referendum will pass, one U.S. politician said the country is embarking on a healthy conversation regarding the role of its national bank.

Former U.S. Rep. Ron Paul, who is a strong proponent of gold-backed currencies, said in an exclusive interview with Kitco News the fact a referendum on gold reserves was triggered in Switzerland demonstrates that people around the globe are starting to question the reliability of fiat currencies.

On Nov. 30 Swiss voters will vote on three initiatives as part of the gold referendum: whether or not the Swiss National Bank should increase its gold reserves to 20%, that the central bank should stop selling its precious metals and that all its gold should be held within the country.

People are starting to talk about gold more and they should, he said. (The referendum) is one more step in the direction of proving that paper money, fiat money, money created by politician out of thin air to subsidize big government and monetize debt is going to end.

Although recent polls showed some popularity for the Save our Gold initiative, which was first launched in 2013 by the Swiss Peoples Party, Paul said there is a concerted effort by the Swiss government to oppose the initiative. He added that he is expecting as the Nov. 30 deadline looms closer to see stronger fear tactics from the Swiss government and the Swiss National Bank to convince people to vote against the initiative.

When our crisis hit there was panic and people were scared to death. Even conservatives who didnt believe in bailing out the banks were frightened into it, he said. But if you had a clean vote and just simply ask the question: should Switzerland hold its own gold should the central bank hold a certain amount of gold in reserves. I think you would get an overwhelming yes.

However, he added that no matter what happens with the vote it is the discussion that is the most important.

A lot of the attention of the Swiss gold referendum has been focused on the need for the national bank to buy about 1,500 metric tons of gold to boost its gold reserves to 20% of its total foreign reserves, if it passes. Paul said just as important, the central bank will have to hold all its gold within the country. Currently, the Swiss National Bank holds 70% of its gold and 20% is held with the Bank of England and 10% is held with the Bank of Canada.

That is a natural and normal healthy instinct and I think other countries ought to do it, he said. Its sort of like holding gold for personal reasons If I am holding gold for emergency reasons, I want to know where it is and I want access to it.

By Neils Christensen of Kitco News; nchristensen@kitco.com

View original post here:
Switzerland Gold Referendum A Healthy Conversation -- Ron Paul