87835
Some 75% of voters rejected the so-called sovereign money initiative measure.
Some 75% of voters rejected the so-called sovereign money initiative measure.

Swiss Reject Radical Sovereign Money Proposal

Swiss Reject Radical Sovereign Money Proposal

Swiss voters dismissed a radical proposal to overturn one of the financial system’s core tenets.
The so-called sovereign money initiative, or “Vollgeld,” would have ended the system of fractional reserve banking that’s been around for centuries by allowing only the Swiss National Bank to “create” money. But 75% of voters rejected the measure, according to a projection from Swiss television SRF. Official results of the plebiscite are due later on Sunday.
“Of course we’re happy,” said Heinz Karrer, president of business lobby Economiesuisse. “A large majority of the population didn’t want to go for such an experiment.”
While polls had suggested “no” was likely, the fact supporters were able to muster the 100,000 signatures necessary to put it on the ballot is testament to the ongoing distaste about the financial industry still palpable a decade after the financial crisis. While that was sparked by the collapse of Lehman Brothers, Switzerland didn’t escape, and was forced in 2008 to bail out UBS, its biggest bank.
Proponents of Vollgeld argue that by putting the central bank solely in charge of steering the amount of money in the economy, there would be more safeguards to prevent the kind of asset price bubbles that caused the 2008 financial crisis. While the movement has gained the most prominence in Switzerland, thanks to its system of direct democracy, it has also found favor in other countries, such as Germany and the UK.
“It was a pragmatic proposal to make the currency system better,” said Reinhold Harringer, a supporter of the measure.
Yet critics, notably the Swiss government and the SNB, campaigned against the plan, saying it could cripple the economy and politicize monetary policy.
Plebiscites and referendums are a key feature of Switzerland’s tradition of direct democracy, with votes on a wide variety of topics ranging from license fees for the public broadcaster to immigration quotas and even public defenders for mistreated animals taking place several times a year.

Short URL : https://goo.gl/ANeyLW
  1. https://goo.gl/yMvM3E
  • https://goo.gl/1SHrs1
  • https://goo.gl/dhyntv
  • https://goo.gl/dzWr35
  • https://goo.gl/iUymGp

You can also read ...

Saudi Arabia Bleeds as Capital Flight Continues
As Saudi Arabia raises the stakes in its dispute with Canada...
Experts Say China Economy Manageable
Recent external pressures, a general global trade malaise...
 Final Nail in Abraaj Coffin
The Abraaj Group has been put through the ringer in past...
Qatar Pledges $15b Investment :      Turkish Lira Weakens 6% on Threat of More US Sanctions
Turkey’s battered lira weakened more than 6% against the...
Europe Should Resist Illegal US Penalties
European countries should take effective steps to counter US...
Australia Drought Could Cost $12 Billion
The Reserve Bank of Australia and a new report have warned of...
Indonesia Sets Moderate Growth Goals
Amid rising external pressures, Indonesia’s economy is...
 Crypto Scams on the Rise in UK
Crypto currency scams are using images of celebrities and...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus