Top stocks to invest in – The Vollgeld Initiative: A Primer

Top stocks to invest in

Over 100,000 Swiss citizens signed a petition to hold a constitutional referendum to end fractional reserve banking. Yes, really! That petition was certified on 24 December 2015 and a vote will be held sometime in 2018.

Switzerland, that scion of banking, may vote to end the bedrock philosophy underlying modern finance. The date of the referendum is not official as of this writing, but ballots will be cast on either 4 March, 10 June, 23 September, or 25 November.

The movement is known as Vollgeld and is inspired by the torch-lighting work of Nobel Prize-winning economist Irving Fisher in the 1930s and the torch-bearing work of the International Monetary Fund (IMF). Though it draws on these antecedents, the Vollgeld Initiative features its own distinct provisions.

In short, Vollgeld backers believe that a full money reserve system will lead to:

  1. Greater control of business cycle fluctuations.
  2. The complete elimination of bank runs.
  3. A significant reduction in net government debt.
  4. A dramatic reduction in private debt.

Opponents counter that an end to fractional reserve banking will crush the financial industry and its ability to facilitate economic growth. They contend that concentrating credit creation authority in the hands of bureaucrats — as Vollgeld does — is a mistake. Moreover, they believe that depositors under Vollgeld will likely earn negative returns on their deposits. Thus the initiative will discourage deposits altogether.


Because this story features many moving parts and opinions, I have curated a reading list to help you keep track of this potentially earth-shaking movement.

If you liked this post, don’t forget to subscribe to the Enterprising Investor.


All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.

Image credit: ©Getty Images/Danita Delimont


Jason Voss, CFA

Jason Voss, CFA, is a content director at CFA Institute, where he tirelessly focuses on improving the ability of investors to better serve end clients. He is the author of the Foreword Reviews Business Book of the Year Finalist, The Intuitive Investor. Jason also ran a successful blog titled What My Intuition Tells Me Now. Previously, Voss was a portfolio manager at Davis Selected Advisers, L.P., where he co-managed the Davis Appreciation and Income Fund. He holds a BA in economics and an MBA in finance and accounting from the University of Colorado.

Ethics Statement

My statement of ethics is very simple, really: I treat others as I would like to be treated. In my opinion, all systems of ethics distill to this simple statement. If you believe I have deviated from this standard, I would love to hear from you: jason.voss@cfainstitute.org

Top stocks to invest in

Learn How To Be #1 on Google Results



Source link