SWITZERLAND AND THE 6,000 YEAR-OLD GOLD BUBBLE
Five million Swiss voters will decide on Sunday (11/30) whether to force the Swiss National Bank to repatriate all its gold from vaults in Britain and Canada, boost its holdings of bullion to 20% of foreign reserves and then keep the metal forever.
The "Save Our Swiss Gold" referendum is a valiant attempt by Switzerland's army of gold bugs -- and the populist Swiss People's party (SVP) - to lead the world back to the halcyon days of the international Gold Standard. It is a primordial scream against a quantitative easing and money creation a l'outrance (at all costs) by the leading central banks.
Yet there is a snag. The Swiss National Bank (SNB) is the biggest printer of them all in relative terms, far outstripping the Bank of Japan, let alone the US Federal Reserve or the Bank of England - mere amateurs at this game.
At one stage it was mopping up half of the entire sovereign bond issuance of the eurozone each month, a scale of action that the European Central Bank's Mario Draghi can only dream of.
You have to smile when you hear Swiss gold enthusiasts complaining that these foreign bonds - bought with electronic fiat francs created out of thin air - are now losing value as the euro slides against the dollar. But then we all suffer from cognitive dissonance.
