VIDEO Peter Schiff Statement to Swiss Voters on Gold Referendum

In the video statement below, Peter Schiff makes a direct appeal to Swiss voters to pass the Save Our Swiss Gold initiative on November 30th. The constitutional referendum would require the Swiss National Bank to repatriate its foreign gold holdings and maintain 20% of its foreign reserves balance in gold. If passed, the franc would effectively be the only developed market currency to opt out of the ongoing “currency wars,” and could therefore become a destination for a deluge of foreign capital.




Here's  the full transcript:

Poll: Latest on Swiss Gold Referendum

 A proposal to prohibit the Swiss National Bank from selling any of its gold reserves, and would require the SNB to hold at least 20% of its reserves in gold, (SEE:Swiss Gold Referendum: If This Passes It Could Change the Gold Price Overnight) has the support of only 44 percent of the public, a new survey showed.

The group behind the poll also said support was likely to diminish as a Nov. 30 vote on the measure approaches, reports Reuters.

Swiss Gold Referendum: If This Passes It Could Change the Gold Price Overnight

By Louis Cammarosano

On Novemeber 30, 2014, the Swiss will go to the polls to vote on a referundum “Save Our Swiss Gold” that, if approved, would require the Swiss National Bank (SNB) to hold 20% of its reserves in gold, repatriate any gold it holds outside its borders and cease selling any of its gold.

Will the Swiss gold initiative pass?

What are the implications for the price of gold if Save Our Swiss Gold passes?

Switzerland is a country that is almost synonymous with gold. The idea of

The Swiss Central Bank Has Gone Mad

The Swiss franc is a very desirable currency right now as Europeans flee (unjustifiably in my opinion and that apparently of Jim Rogers) the euro.

This has caused the Swiss central bank to go on a money printing rampage.

 Marc Chandler (htStefanKarlsson) tells of the large foreign exchange reserve increases of the Swiss National Bank (Note they have to print huge amounts of money to gain these reserves):

In terms of the euro, the SNB appears to have purchased around 55 bln euros in the month of May. This is simply an incredible amount. Assuming that the SNB is QE is still operative and it is selling Swiss franc and buying foreign–primarily European bonds, consider that the ECB bought around 40.5 bln euros worth of European sovereign bonds in the secondary market. The time frames do not match up perfectly, but it would appear that the SNB bought more European bonds than the ECB itself.

Further, it should be noted that the ECB is sterilizing its purchases. There is no indication that the SNB is doing so.

Karlsson adds:

Another interesting perspective is that, again assuming the numbers are correct, this is nearly twice as high as the value of Swiss GDP during that month (Swiss GDP is roughly €30 billion per month). This is the equivalent of the Chinese central bank buying $750 billion each month, or the Fed buying $2.3 trillion each month.

Got that? Printing money equivalent to twice the countries GDP!!!

What's gotten into the Swiss?

The flight from the euro into the franc (among other currencies and gold) has been pushing the franc up on foreign exchange markets vis a vis the euro. The strong franc hurts the Swiss tourist industry and exporters but is a boom for importers. A strong franc also puts most of  Europe on discount for the Swiss.

But instead of allowing a sort of super discount travel spree and cheap foreign products (Think $50 iPads) for all Swiss that would result from a super strong franc, the SNB has decided to put the franc on the road to severe decline for the benefit of those that cater to the Swiss incoming tourist trade. If the SNB doesn't start sterilizing its insane money practices by draining francs from the system, instead of a super discount on Europe, the Swiss are going to end up with pretty severe domestic inflation (Think $10,000 iPads), and no discounts anywhere.

Admittedly a strong franc does distort the domestic tourist trade but the SNB reaction will be ruinous for the entire country. It is a serious mistake. Shorting the Swiss franc against the euro looks like a solid trade to me.

Bombshell: Liechtenstein to Lift Bank Secrecy on Tax Evasion Cases

Offshore tax haven Liechtenstein has agreed to a landmark deal with the U.S. to drop bank secrecy in cases of tax evasion and could make similar concessions in the European Union.

Prince Nikolaus, a member of Liechtenstein's ruling royal family who brokered the deal, told Reuters the former tax haven had agreed to a "significant" change to bank secrecy rules that entitles the U.S. to bank account information when probing tax evasion.

I surely thought Switzerland would fall to U.S. pressure before Liechtenstein. They must have pictures of Prince Nikolaus doing something he is not supposed to be doing.

Switzerland, where tax evasion is not a criminal offense, continues to refuse to cooperate with the U.S. on tax evasion cases.