Swiss bank chief wants cartel to continue

Jon Blogosphere, Economy, Fiscal Policies, Gold, Market Commentary, Politics, Precious Metals

The head of the SNB reiterated concerns that a popular vote on requiring the central bank to keep a fifth of its assets in gold would hinder its ability to conduct monetary policy.
In text of a speech to be delivered Sunday, SNB Chairman Thomas Jordan said the initiative, known as ‘Save Our Swiss Gold,’ would limit the central bank’s ‘room for maneuver.’ for that read, manipulate markets to suit. That it would make it harder for the bank to intervene(manipulate) during crises and fulfill its mandate of price(manipulation) stability.
‘The initiative is both unnecessary and dangerous,’ Mr. Jordan said in the speech. ‘It is unnecessary because, under the current monetary order, there is no link between price stability and the share of gold in the SNB balance sheet.’
On Nov. 30, the Swiss will vote on whether the SNB should be required to maintain a minimum of 20% of its assets in gold. If passed, the initiative would also prevent the SNB from selling gold and force it to repatriate its holdings of the precious metal maintained in the U. K. and Canada.

This post was published at TruthinGold on November 24, 2014.