Swiss Referendum To Repatriate Gold?

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Germany has ratcheted up the pressure on other countries to repatriate their gold reserves. The latest country to press  its Central Bank over gold reserves, is Switzerland. Of course they are unique in that they have true democracy unlike the corrupt Dumb-ocracy version the rest of us have. In Switzerland they can force a referendum  if they can get over 100,000 petition signatures. In this instance its the Swiss National Bank that the people are unhappy with and have 3 demands. Now thats real democracy 🙂

With last week’s announcement by the Bundesbank of the repatriation of 674 tons of German gold from Paris and NY over the next 7 years, we predicted that an avalanche of gold repatriation requests would soon be made to the BOE and the NYFed. 
It appears that Switzerland may be next to the game, much to the dismay of the SNB.  The Swiss gold initiative, an initiative to Secure the Swiss National Bank’s Gold Reserves, launched in March 2012 by four members of the Swiss parliament, has grown to 90,000 supporters. 
Once 100,000 supporters are achieved, the Swiss Parliament must take up the referendum. 

The initiative asserts that the Swiss people should have a right to vote on 3 things, none of which will please the banking cartel:

1. To keep Swiss gold physically in Switzerland (ie repatriate Switzerland’s gold)
2. Preventing/forbidding the SNB from selling any more of its gold reserves
3.  Requiring the SNB to massively increase their gold holdings to a minimum of 20% of its reserves within 5 years, held within Switzerland.

Not surprisingly, the Swiss National Bank doesn’t wish to disclose where it’s physical gold is held, but it may soon be forced to once the initiative achieves 100,000 supporters. 

674 tons repatriated here, 1040 tons repatriated there, pretty soon we’re talking real money!

Checkout google translate of article from Post Finance

Gold initiative prepares the SNB headache
by Lukas Hässig – home to Switzerland must get their gold from abroad? The SVP initiative calling for the missing, only 10,000 signatures. The SNB could get into trouble.

“Already in March 2013 is the deadline for the submission of Gold initiative,” wrote the St. Gallen SVP National and co-founder Lukas ReimannAlthough it was with some 90,000 signatures on its way. “But to crack the necessary 100’000, now the use of all is needed.”

Where are the 1,040 tonnes of gold the Swiss National Bank? The question is now being seriously discussed with us. The response of the SNB remains nebulous. Most of it is here, but some lie abroad, said the central bank.We do not want to be precise,” says SNB spokeswoman Silvia Oppliger. “Maybe we will express more precisely, should the gold initiative come about.”

German gold repatriation provides in USA for red heads

The German Bundesbank initially thought that she needed to accept the emotional issue any further. But so are a growing number of applied citizens and politicians were not satisfied. They put the central bank so long under pressure until it gave way recently. Now bring the Germans back 674 tonnes of gold from the U.S. and from France to England. This corresponds to a value of 27 billion euros currently.

The large gold repatriation of our northern neighbor provides worldwide headlines. «Germany Moving Its Gold Back Home To Satisfy The Paranoid”, headlines the U.S. Internet newspaper Huffington Post; pure populism to appease a population that is seeing ghosts. In Germany, had previously taken hold doubt the actual existence of the gold that is stored in the gold vaults of the Americans. The bars may indeed be covered with a thin layer of gold and otherwise consist of inexpensive iron was feared.

SNB would have to buy up to 100 billion gold

Interestingly, Switzerland has been a long time before the Germans and taken without public vertebral the topic. Circles from the People’s Party launched 16 months ago, the gold initiative. Because the project in parliament remained chance would just started as the last remaining means an initiative, the initiators said then. By referendum, they want to force the SNB to store all the gold in Switzerland and sell no single ton more. In addition to the SNB within 5 years after voting to increase their gold holdings massively so that it accounts for a fifth of the minimum in the whole balance.

At current prices, the rest would go into the money. Currently, the share of gold in all the assets of the National Bank is only at 10 percent. If the SNB reduced its balance sheet is not strong, then it remains a possible adoption of the initiative no other choice than double its gold reserves to 2000 tonnes.

A ton of gold currently costs about $ 55 million. Now can be expected: 2000 tons came to 110 billion dollars, equivalent to about 100 billion francs. By comparison, the SNB now has a capital of 62 billion francs. This does not include higher gold prices that could arise due to the demand of the SNB.

Headache at the guardian of the currency

Where did all that money to come for gold purchases is not clear. It would be nice to reduce the mountain of about 170 billion euros in order to buy gold bars. Only it would take for the many Euros first buyer, and the single currency would yet remain so stable that billion-sales of the SNB would not immediately strengthen the franc against the euro again. This consideration alone makes it clear that the gold initiative although many Swiss arrives, but whose implementation the responsible persons would cause big headaches.

Source: Silver Doctors, Post Finance

David McWilliams: EU Pissing Down Our Backs, And Telling Us Its Raining

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David McWilliams explaining the “Fiscal compact” and how it can’t work.

The German Elite want a Federal Europe and to be top dog. A weak euro suits them perfectly. It gets a free lunch and don’t want to lose it.

 

 

Irish Referendum – In Case You Want to Vote No?

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Compelling video from the Government for the Irish Referendum;-) 

Don’t Make Us Ask You Again !!!!!!

Dirty Tricks In Irish Referendum On Fiscal Treaty

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The Irish Government setup many years ago a Referendum Commission whose task it was to impartially outline what each referendum was about. It unfortunately has fielded criticism in the past including referendum on Lisbon Treaty for taking a pro-government stance.  It appears again, that the Referendum Commission has faced further claims from MEP Paul Murphy of inaccuracies in the booklet that is being sent out to all the households in Ireland.

In the booklet, it is claimed that Ireland cannot access the ESM if it votes NO which is not true. The fact is, Ireland has not ratified ESM and can veto the “blackmail clause” (long been suspected that the Irish Government put it in to force a YES vote).

Socialist Party MEP for Dublin Paul Murphy has written to the Referendum Commission claiming their advisory booklet contains inaccuracies. Murphy says that the booklet’s claim that access to the European Stability Mechanism would be unavailable if there was a No vote in the Fiscal Treaty referendum is wrong. Murphy’s statement and letter to the Referendum Commission is below the fold.

MEP writes to Referendum Commission seeking correction of inaccurate ESM claims in booklet

  • Irish state still has power to threaten veto over ESM to demand withdrawal of connection beween ESM and Austerity Treaty
  • Commission booklet is prejudging a political decision yet to be made

“I have written to the Chair of the Referendum Commission, Judge Kevin Feeney, this morning to bring to his attention an inaccuracy in the booklet issued by the Commission. The booklet states that ‘any future bail-out could not involve access to this particular source of funding.’ The source of funding referred to is the European Stability Mechanism.

“This is inaccurate and represents a prejudging of a political decision that has yet to be taken. The Oireachtas has not yet voted on the ESM, nor on the amendment of the Treaty on the Functioning of the European Union necessary to give a legal basis for the ESM. This means that the threat of a veto could still be used to demand the withdrawal of the ‘blackmail clause’ which creates the connection between the ESM Treaty and the Austerity Treaty.

“It is vital that people have access to the accurate information about this important question. I have asked for this inaccuracy to be corrected on the Referendum Commission’s website and in the booklet.”

Click here to see full letter MEP Paul Murphy sent to the Referendum Commission.

Alternatives For Ireland After NO Vote In Referendum

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Prof. Terrence McDonough ( School of Business and Economics,  NUI Galway) made a presentation to the Joint Committee on European Affairs on the Intergovernmental Treaty on Stability, Coordination and Governance in the Economic and Monetary Union regarding Ireland’s many options if there was a NO vote on Fiscal Treaty Referendum.

There is a strong chance Ireland will need a 2nd bailout. As many suspect (and hasn’t been denied by Irish government), the Treaty was changed at Irish Government’s request so that Ireland would not be able to access the ESM for funding if it voted NO. This measure was brought in so the Irish Government could force the electorate to pass the referendum (they knew full well one was required). Below are options that Ireland has to deal with the eventuality of needed funds. In fact Constantin Gurdgiev said a NO vote is Ireland’s trump card.

In fact, Ireland will have a number of options in this event.  First, Ireland is small but scary. A disorderly Irish default would threaten the stability of the European banking system.  A European Central Bank intervention to restabilize the system would be considerably more expensive than a second bailout of a comparatively small country. It is highly unlikely that Europe would ignore its self-interest in order to spite the Irish electorate.  Funds would be  found outside of the ESM.

Secondly, Ireland also has the option of borrowing from the IMF rather than the European institutions.

A third possibility is to set about closing the budget deficit.  Irish tax take as a  percentage of GDP is well below the EU average.  Taxes on wealth and high incomes are  considerably underexploited.

A fourth possibility is the restructuring of debt.  The Anglo-Irish promissory note  payments alone constitute 3 billion in any given year.

A fifth under-discussed possibility is the issuance of innovative debt instruments.  It would be possible to make Irish bonds acceptable in payment of taxes in the event of any  default.  This should eliminate the risk premium which makes it difficult for Ireland to re- enter the markets at this time.

Any one of these options alone has the potential to substantially address the budget gap in the event of a second bailout and a failure to access ESM funding.  A judicious  combination of these strategies would easily finance the resulting gap with little disruption.

The sky will not fall in the event of no vote.

If a no vote will not lead to disaster, are there positive reasons to vote yes?

Many pro-treaty arguments are primarily intended to be calming and reassuring in  nature, telling the electorate that a yes vote is the safe and conservative course.  In fact such a  pact is historically unprecedented and a dangerous experiment.

 

Paul Sommerville who was on the Vincent Browne show said that there is no chance Ireland would be left without funding.

“There is absolutely no chance that the ESM will not fund us no matter what way we vote, zero chance…”.

Goto 29mins 15 secs into interview at http://www.tv3.ie/3player/show/41/47930/1/Tonight-with-Vincent-Browne

Ireland To Vote On Staying In Euro

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The Irish Taoiseach (Prime Minister) Enda Kenny confirmed yesterday that the question in Ireland’s upcoming referendum will be on whether Ireland wishes to remain in the euro. Finally a solution lies up ahead, but will the Irish electorate suffer from Stockholm Syndrome. Will EU propaganda and scare mongering win the day as twice before Ireland rejected the EU only to be told democratically to vote again after the media and politicians went on a joint charm and scare offensive.

TAOISEACH Enda Kenny claimed yesterday the central question in the upcoming EU fiscal treaty referendum will be whether or not the country wants to remain in the eurozone.

Mr Kenny also repeatedly refused to rule out holding a second referendum on the tough new rules, which will give the EU more control over our budgets to prevent over-spending, although he did point to the tight timescale of the end of this year.

“The public will be focusing on the question that will be on the paper — do they want to be part of the European community and the euro and the eurozone, from now on, or do they not wish to be,” he said in response to a question from Raidio na Gaeltachta.

Mr Kenny’s comments follow Finance Minister Michael Noonan describing the referendum as a vote on whether Ireland wanted to be in or out of the eurozone.

The Taoiseach warned about Ireland’s future in the EU in the forthcoming referendum.

This next sentenace is my personal favourite from the article as we were told the exact same before the Lisbon Treaty. We ended up with massive unemployment, no stability and the opposite of growth. More of the same 😉

Mr Kenny said he was confident the referendum would be passed as it was about Ireland’s future, jobs, stability and a growth agenda.

Oh, and the EUSSR rares it head again in the next sentenace

Mr Kenny also repeatedly refused to rule out holding a second referendum

Source: Irish Independent

Referendum For Ireland

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Great news for Ireland. The Irish Constitution wins again and ensures the Irish have one last crack at an EU treaty. Predictably TPTB in Ireland will use the same tactics as the last time. The message as usual will be

If it’s not passed, the sky will fall in, the world will end, everyone in europe will hate you.

If you do pass it, everybody will get a job and the Celtic Tiger will come back.

or some thing like that.

Constantin Gurdgiev had this to say on the Fiscal Compact

As a whole, to comply with the Pact parameters, the Euro area economy will have to shrink by some €535-540 billion every year between now and 2020 – an equivalent of reducing euro area growth by a massive 3.9% annually.

………………

Ireland will be one of the worst impacted economies in the group courtesy of our excessively high structural deficits, debt to GDP ratio and cyclical deficits. In 2012, Ireland is forecast to post a structural deficit in excess of 5.5% of potential GDP – the highest structural deficit in the entire Euro area. To cut our structural deficit to 0.5% will require reducing annual aggregate demand in the economy by some  €7-8 billion in today’s terms. Debt reductions over the period envisioned within the pact will take an additional €12 billion annually. For an economy with huge private sector debt overhang, paying some 12% of its GDP annually to adhere to the Fiscal Pact is a hefty bill on top of the already massive interest bill on public debt.

So, looking at the past will give an indication of likely countries will be able to stick to the constraints

My own research based on the Euro area data shows that during 1990-2008, only two euro countries – Finland and Malta – have complied with the Fiscal pact criteria more than 50% of the time. The rest of the member states, including Germany and France, have run sustained deficits more than 60% of the time. Once a euro state found itself stuck in twin current and fiscal deficits in one decade (the 1990s), transitioning to a twin current account and fiscal surplus in the next decade (the 2000s) was virtually impossible. For example of all states in EA17 who were in current account deficit throughout the 1990s, only 2 have managed to achieve current account surpluses during the following decade. Only one country that experienced fiscal deficits in the 1990s has managed to generate fiscal surpluses over the following decade. No country has been successful in restoring fiscal and external balances after a decade of twin deficits.

Gurdgiev sums it up as

In short, the Pact our Government so eagerly subscribed to is at the very best a continuation of the status quo. At its worst, Ireland and other member states of the Euro are now participants to a fiscal suicide pact, having previously signed up to a monetary straightjacket as well.

Senator Shane Ross had the following comment

Mr Ross said it was a fiscal pact on austerity and was dictated by the French and Germans without any input from Ireland.

He also said it was a road we should not go down and the debt reduction has to be tied into the ratification process.

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