- the source for market opinions


June 4, 2018 | More News, Swiss Referendum on Banking, June 10!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

Today’s Wall Street Journal had another article on the banking referendum which is scheduled for June 10 in Switzerland. The article is entitled ‘A Radical Swiss Proposal’. In reality this proposal favors Central Bankers and the coming Mark of the Beast financial system. Few, however, are educated on money and banking issues. Let’s review what the Swiss proposal is all about.


Today, most commercial banks (members of a Central Bank system) can create new money digits with NO RESERVES backing the loan creation. The maximum loan which a commercial bank can create often exceeds $100,000,000. All this is done with the stoke of a computer key(s) and with no deposits or reserves backing up this new money creation. Money arrives from ‘thin air’ (the bankers mental thinking). This is what is meant by money creation with NO reserve backing up the loan(s).


All this money creation by our commercial banks has created all the current asset bubbles in our global markets. Our stock markets are now in a bubble. Our real estate markets are in a bubble. All our derivative markets are in a bubble. All this has happened as money is transitioning from a material ‘thing’ (paper, silver, gold) into a mere mental abstraction (called a money digit). What is a digital money unit (in reality)?


Today’s digital money system allows unlimited money creation via loans. Most loans can be created with ZERO reserves backing up the loan. A banker merely types in numbers in a computer account (calls the numbers a ‘liability’ and an ‘asset’) and magically money emerges for a client to spend. The Swiss referendum recognizes that all this money creation will eventually lead to serious price/asset distortions in the marketplace. The process is also a corrupt process favoring select elites.


The above WSJ article by Paul J. Davies points out that this new proposal by the Swiss restricts lending by all these commercial banks and transfers control over all lending to the Central Bank. Only the Central Bank could create money from nothing. The Central Bank would be responsible for all economic change and for all money creation via the computer. The balance sheets of our Central Banks would control all member bank lending activity. Mr. Davies calls this full reserve banking.


Read the article in the June 4, WSJ, page B-10. This article follows up on my previous blog which covered the announcement of a referendum in Switzerland for Sunday, June 10. My sense is that the people of Switzerland will have an opportunity to get educated on what our banks have been doing behind closed doors. Will anything change as a result of this referendum? Probably not immediately.


I do think that most people would not support unlimited money creation (digital money creation) out-of-nothing. This is a corrupt activity as it favors the big crony Capitalist’s at the expense of the average entrepreneur. Think of what has happened these past 10+ years. TRILLIONS of digital money units have been created OUT-OF-NOTHING (a bankers consciousness) and funneled into our global economy with no transparency. All this has allowed asset bubbles to grow and no market authority could stop the process.


Fractional reserve banking has turned into ‘no reserve banking’ and this has allowed trillions of money units to chase goods and services. Fortunately, all this money has not created hyper-inflation as the supply of goods has grown in general proportion to the money creation. But all this has also been detrimental for real Capitalism as lending has gone to the BIG companies (mostly). What is the capitalization of APPLE today? Are you aware that APPLE is nearly a trillion-dollar company.


The other huge companies which benefit from unlimited lending at near zero interest rates (for years) were Amazon, Facebook, Google, Caterpillar, Boeing, Goldman Sachs, JP Morgan, etc. The DOW index has gone from 6,400 in 2009 to over 26,000 (currently 24,800). All stock markets have gone up as the new money digits have gone into stocks and real estate (mostly). Could the Swiss money creation proposal help to change all this artificial market activity?


Watch the results of the referendum this Sunday, June 10, to find out. My sense is that the big boys will not favor this referendum and this will mean it will not pass. But the education on money is HUGE. Today, our money system is totally corrupt and it favors the few at the expense of the many. Will the ‘Mark of the Beast’ financial system emerge in the coming months and years? I think so! Watch what happens on June 10 and pass this missive on for others to read and think about! Enjoy! I am:

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

June 4th, 2018

Posted In: Kingdom Economics

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.