news Switzerland to propose the unthinkable

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I've no intention of turning this into a debate. The sole intention of this thread is to let you know about a very interesting development. Some may take interest, others won't. If anything at all, I would encourage people to further explore the issue. What your opinion ultimately becomes is really none of my concern. With that out of the way, let's get right down to it.

 

I'll take some snippets from The Telegraph to give a basic idea of what's going on here.

 

 

 

Switzerland will hold a referendum to decide whether to ban commercial banks from creating money.

 

[...]

 

The campaign - led by the Swiss Sovereign Money movement and known as the Vollgeld initiative - is designed to limit financial speculation by requiring private banks to hold [100%] reserves against their deposits.

 

"Banks won’t be able to create money for themselves any more, they’ll only be able to lend money that they have from savers or other banks," said the campaign group.

This entire conversation ultimately has to do with how banks create money. This process is called Fractional Reserve Banking. If you're unfamiliar with that, well, it's an incredibly tough topic to chew on in one sitting so I'm afraid you'll have to do some digging into that yourself if it interests you to that extent.

 

So, do you believe this to be a good move on the part of the Swiss? This is something other countries are in the consideration phase with so Switzerland isn't alone in this. Should your country give this idea consideration as well? Will this help or harm a nation's economy and/or the standard of living? Just what what is this Vollgeld Initiative all about in the first place? Don't answer these questions for me, answer them for yourself.

 

Good day.

Edited April 24, 2016 by Melanoma