This Sunday May Mark the End of Western Monetary Dominance!
- This Sunday may mark the end of Western monetary dominance!
by , http://www.sovereignman.com/
…. The West has been the dominant superpower for centuries. Yet like the Byzantines before, the West is in obvious decline. At this point insurmountable debts and deficits plague nearly all Western governments. And they make up the difference by debasing their currencies.
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This has created massive distrust, especially in the world’s most dominant reserve currency today, the US dollar.
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Like the Venetians and Florentines before them, rising powers in Asia are starting to take matters into their own hands. The Chinese renminbi (though surely not a one-way bet) is rising in international prominence. And China is at the center of a new emerging global financial system being set up in partnership with Russia, India, Brazil, etc.
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Western dominance was born from a distrust in the dominant reserve currency at the time. Its decline will be because they followed the same route. And the canary in the coal mine is what’s happening in Switzerland this weekend. On Sunday, the people of Switzerland are going to the polls to vote on a return to the gold standard.
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It was only 14 years ago that the Swiss franc, traditionally seen as a safe haven currency due to Switzerland’s reputation for stability, was still on a gold standard. In fact, of all the major currencies, the Swiss franc was the last to abandon prudent monetary standards. Ever since then, the Swiss National Bank’s balance sheet has absolutely exploded.
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Now there’s a national election to return to a gold standard and conservative monetary policy. Right now the polls suggest that the Swiss are leaning towards ‘NO’, i.e. they want to continue to abandon prudent practices and hand over total control of the money supply to unelected central bankers.
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And if the country that has the world’s strongest traditions for financial stability chooses to turn its back on sound money, what hope is there for the rest of the West?
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If the Swiss vote NO this weekend, I view that as a major watershed moment in signaling the beginning of the end of Western monetary dominance. We can already see the signs everywhere.
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