The Swiss Gold Standard and the New Order of the Ages1

by Jean-Marc Berthoud

Copyright © 1997 Jean-Marc Berthoud

The meaning of the offensive carried on for more than six months against Switzerland by numerous Jewish organizations in the name of funds without heirs deposited in Swiss banks during World War II begins to become a little clearer. ln international opinion this systematic offensive leads to the identification of crimes allegedly committed at that time by our people with the forfeits of Nazi Germany. This beginning clarification comes to us essentially from the inordinate character of the latest act of this drama. There we saw the Swiss Federal Council announce on Wednesday, March 5, 1997, by the mouth of the President of the Swiss Confederation, the Christian Democrat Arnold Koller, the establishment of a Swiss Humanitarian Foundation endowed with a capital of seven billion francs whose interest would serve to provide for the needs of persons finding themselves in grave financial distress in Switzerland as well as abroad. Among the persons who would thus be relieved there would evidently be the descendants of Jews who were victims of Nazi exterminating persecutions before and during World War II.

But we must first of all call attention to the extraordinary ambiguity of the position defended before the tribune of the Federal Chambers by President Koller. To begin with, there is no formal recognition in his statement of any collective guilt whatever on the part of Switzerland; next, the task of the historical commission (on which the determination of the sum to be paid to Jewish organizations always depends) is maintained; finally, the establishment of this Swiss Humanitarian Fund has according to him allegedly no relation to the question of the funds without heirs. For the new fund is simply to reaffirm the humanitarian tradition of the Confederation. The question arises, then, and it is from the answer given to this question that light will come: why the creation of this fund of seven billion francs now? The cause seems manifestly disproportional compared to the effects it will have produced!

The announcement of the establishment of this Swiss Humanitarian Foundation was received (except for certain English language press organs which redoubled their virulence) by an international chorus of praises. In particular the Jewish organizations which had so heavily attacked Switzerland, virtually identifying the role of our people in World War II with that of Nazi Germany, shouted victory. Here also we need to note an exception, that of the president of the World Jewish Congress, Edgar Bronfman, who for his part kept up a prudent reserve for several days. We should note in passing that these organizations demand everywhere excuses from those whom they shamelessly attack, yet without ever excusing themselves to those whom they slander so merrily. Even worse, those who are thus attacked, even when they still dare to counterattack their adversaries, never demand the least excuses from their attackers as a preliminary condition for any negotiation!

At first glance all this seems very strange to us. All the more, let us repeat, since the spread of the pressures directed against Switzerland, as well as the astonishing excess which characterizes the response of the Federal Council, do not at all correspond with the question, certainly important and painful, yet (it must be said) relatively modest, of the funds of Jewish origin without heirs in the Swiss banks. The response of the Federal Council thus adopts for the uninitiated a character which is, to speak properly, surrealistic. This leaves us wondering about the true nature of the motives of the attacks directed against our country, and about the real reasons which dictated the extravagant response of our government.

Thus we must note that one of the difficulties confronting us in the analysis of the conflict which opposes Jewish organizations to Switzerland arises from the emphasis which is constantly put in this debate on the specifically Jewish aspect of the question. As for us, we believe that we must make an intellectual effort to put aside the purely Jewish aspect of this matter, as painful as it may otherwise be, and consider it as functioning in an important part as a distraction of the attention of the observer, a smoke screen intended to conceal globally much more important stakes. There may be here more than the simple limited question of Jewish funds without heirs in the banks of our country. Besides, we are inclined to think that in this affair the claims (legitimate or illegitimate) of the Jewish organizations must be above all perceived as so many means of most powerful emotional pressures (sentimental weapons!) in the media, psychological and semantic war now being waged against Switzerland.

It is obvious that the language used in all this affair is a deceptive language. In another time one would speak of disinformation. In mid-December, the Swiss ambassador to Washington, Carlo Jagmetti, had certainly given to understand in a secret report addressed to the State Department that the speakers by whom Switzerland was confronted were not worthy of trust. And this was verified afterwards. In addition, the volume of the shouts of victory aroused by the declaration of March 5 shows that the decision of the Federal Council to release the fantastic sum of seven billion francs gives the adversaries of our country a satisfaction going well beyond their boldest dreams. We must understand the double language used today (the New Speak of Orwell) and carefully decode its meaning. Here the expression humanitarian fund has the exact French meaning tribute: the tribute which a conquered people pays its conqueror to be able to survive. The Federal Council accepted to pay a substantial tribute to those who had brought our country to a veritable capitulation. Despite all its diplomatic and economic concessions to Nazi Germany, the Swiss government had at that time never gone as far as it does today in its submission to the ruling empire of the moment.

Could not the reproaches with which one charges the government of our country of that distant era be addressed more appropriately to the members of the present Federal Council?

The extent of the means put in motion in the media, financial and semantic war waged against our country cannot correspond to the question of the Jewish funds without heirs, for according to all the evidence this latter represents relatively moderate amounts. It seems to us more and more clearly that the true stake of the pressures of which our country is the object is none other than the independence, the wealth and the power of the Swiss financial position. Let us not forget that while 40% of transnational investments pass through the United States, no less than 30% pass through Switzerland.[2] However, the latest developments of this matter allow us today to refine our analysis.[3]

What emerges from the declaration of the Federal Council and the decisions which accompany it is that the true center of the debate relates to the role of the Swiss financial place in the world, and is more precisely located in the question, largely ignored and whose importance is misjudged, of the gold backing of our money. Let us not forget that it is largely this monetary guarantee which gives foreign investors such great confidence in our banking institutions. The gold backing of a currency means simply that the bills of money or the credit in circulation in a country must by law be exchangeable at all times by the issuing bank for their equivalent in gold.

Let us recall that such gold backing of money was a perfectly normal thing in the world until the end of the nineteenth century. Such a realist monetary policy (the monetary sign, the currency, corresponds to a real wealth), in contrast to the nominalist monetary policies of the twentieth century (the monetary sign, the currency, no longer corresponds to a real wealth), gave currencies a great stability. This monetary situation allowed the economies which had the wisdom to submit to such a discipline a slow but real economic growth (not rapid and artificial like in the socialist or Keynesian economy), durable (for founded upon a growth of real riches) and solid (for respecting God's Law: You shall not steal by means of the false balance of legally falsified money). Nineteenth-century England (to cite only one example) knew pursuant to such a monetary policy an economic situation almost unimaginable for us today: a strong increase in the living standard of the population in general without increase of salaries; for while the salaries remained stable, the prices of the merchandise on their part diminished, since the growing real wealth of the country had come to overtake the growth of the total money put in circulation.

The monetary and financial discipline imposed by the gold backing of the currency prevented all speculation involving the currency. On the other hand, in an economy liberated from such constraints, fantastic but really non-existing amounts of money are manufactured, as by magic, out of nothing (ex nihilo) by simple account writing to be injected into the economy. Thus one stimulates artificially the consumption (and by this bias also the production, but also the public debt), giving a literally drugged answer to the problems of recession and unemployment. But such measures, as is true for all consumption of drugs, inevitably produce countereffects, in this case inflation. The latter must then in its turn be artificially reined in by voluntary and interventionist methods of restriction of credit and raising of interest rates operated by the central banks. In such an infernal cycle one goes from artificial stimulation of the economy to inflation, then from inflation to economic braking indispensable for the prevention of social damages due to inflation. One ends up with what might be called the society of unemployment, for in such an economic system unemployment (like much too rapid growth) is an integral part of the inflation-depression cycle. This is quite literally the working out of veritable economic artificial paradises (utopia), for we find here, on the level of economic realities, the same illusion of well-being which a drug (here the money printing press) produces, as well as the harsh reality of the hell of the retreat, the return to reality (financial restrictions). The cycle of artificial growth and inevitable recession (boom-bust in American English) is largely avoided where an economy submits to the disciplines of a currency based upon real wealth (gold) and in which it is consequently impossible to manipulate large monetary amounts at the whim of the utopian or imperialist desires of the sorcerer's apprentices which the politicians and financiers become.[4]

In the twentieth century this monetary brake of the gold standard has been very largely abandoned. A major stage in this liberation of the currencies was crossed by the decisions taken at the famous conference of Bretton Woods, in the United States, in July 1944. Under the impulse of John Maynard Keynes (1883-1946), who presided over the British delegation, the gold standard as national and international monetary standard was abandoned, except for the United States. Thus American money became the obligatory reference for all the other monies, for the dollar could always be bought back for gold at a price arbitrarily fixed at $35. per ounce. This decision ratified the factual economic domination of America over the entire world. A decisive step had been taken in the liberation of currencies from any reference to a real source of wealth. By comparison it is as if one legally authorized an elastic yard or a variable gallon! But the obligatory reference to the dollar (which was founded upon the mountains of gold stored at Fort Knox to determine its value) still guaranteed a certain international monetary stability. By decision of President Nixon in August 1971 the dollar was finally liberated from its obligatory reference to gold. It continued to be the world currency reference, but it was no longer tied to gold. This decision brought about a period of monetary instability which does not risk soon disappearing. Thus there remained only one country in the world whose money was still legally tied to the gold standard by the Constitution itself of the country, and that was Switzerland.[5]

Now it must be said that the economic relations between the nations make necessary some sort of monetary reference to a stable currency in order to prevent that the international exchanges be delivered without defense to the arbitrary and uncontrollable speculative decisions of the politicians and the financiers. It is evident that since the famous decision of Nixon, Swiss money has (certainly involuntarily) rendered this inestimable service as monetary stabilizer to the international community. It is the gold in the coffers of the Swiss National Bank which gives this solidity to the Swiss franc, which makes the services of our private bankers so attractive to international investors. This fact alone explains, on the one hand, the extraordinary confidence of the international investors in the banking institutions of our little country, and on the other hand, the incredible development of our banks. Today they have reached the point of being able to compete with the most powerful banking institutions of America on their own hunting ground, the financial market of the United States.

However, we must add here that the obligatory tie which attaches Swiss money to gold ultimately gives this money an international reference value, which results inevitably in braking the will to world financial domination by the monetary manipulation (monetarism) of the international banks. For, being liberated from the constraints imposed by the gold standard, the currencies become inevitably subject to every kind of monetary and financial manipulation. The presence on the world financial and monetary market of a currency still attached to the reality of a precious material (at a specific price) prevents the various central banks to pursue in total liberty their monetary dynamics creating artificial wealth. In all, the stability of the Swiss franc, founded on the obligatory gold standard, does not allow, by the attraction it has upon the public, such manipulations to deploy their ultimate deadly consequences.

One will then understand very well the frustration of the world monetary and financial system before this Swiss monetary old bone, this kill-joy of archaic persistence of the gold standard of the Swiss franc, confronting this universal consensus. In other words, the final major obstacle to the establishment of a financial system working to accomplish total domination of economy and politics by an oligarchy as interested as irresponsible by way of financial manipulations is the tie of the Swiss currency to the gold standard. The traditional realist policy of our country quite simply prevents the final establishment of this one-world utopia.

It is manifestly this dramatic tension, provoked by the encounter of the will to totally dominate the markets by the established financial oligarchy and the resistance of the Swiss financial position founded upon the gold guarantee of the franc by the Swiss National Bank, which has aroused the immoral and lying attacks carried on since April 1995 against our country with totally shameless cynicism. To take one example among a thousand others, did not the Sunday Times of London of March 9, 1997 publish a photomontage showing the gates of the Auschwitz concentration camp, with the Communist-Nazi slogan Arbeit Macht Frei above it, which opened upon an idyllic Swiss Alps countryside, with the big inscription Blood Money and the Nazi swastika and the Swiss flag interwoven together? As if the much coveted wealth of the Swiss banks came in significant part from the receiving of the plunder robbed throughout all Europe by Nazi Germany! Whatever the role played by the German gold in the consolidation of the reserves of the Swiss banks, the essential reason for the present prosperity of the Swiss banking position comes, as Kurt Schildknecht (former member of the board of directors of the Swiss National Bank) has said, essentially from the international confidence generated by the solidity of the Swiss franc because of its gold coverage. It is evident that the prosperity of the banks is reflected by the prosperity of the entire population of our country. This is how the Nouveau Quotidien of March 10, 1997, reported his remarks expressed the previous day in the political broadcast of the Swiss German television program Arena: "... the Swiss authorities play with fire when they flirt with the idea of digging in the reserves of the Swiss National Bank. " The paper explicitly quotes Kurt Schildknecht: "If the foreign investors have confidence in Switzerland, it is also because of these undervalued reserves. Gold has an irrational value which must not be underestimated. "

But in an era of imaginary money like ours, the investors (here certainly more rational than the economists imagine) recognize without difficulty the difference between a gold guarantee and a purely fictitious guarantee! That this game of liquidation of the gold basis of the franc is part of the plans of the Federal Council seems probable enough, if we believe the statements of 24 Heures of March 7, which writes under the title "So who will break the golden money box of the Swiss National Bank? ":

"Constitution: the Federal Council proposes to anticipate a reform which would become effective within the framework of the total revision of the Constitution. The present articles 38 and 39 will be replaced by the new article 89 of the reform project which suppresses the tie between gold and the franc. In fact, the revision is not directly tied to the revaluation of the gold reserves. It could become effective at any time but the vote will serve as a political test. "

In liberating the fourteen billion francs[6] drawn from the gold reserves of the Swiss National Bank, and in deciding to begin to sell the gold reserve upon which the relation of our money to reality is founded, the Federal Council has taken the first step on the road of the liberation of the Swiss franc from its obligatory tie to the gold standard. This is that first dramatic step (and not the modest sums which would be provided for the descendants of Jews exterminated by the Nazis) which has so much relieved the international Jewish organizations and the spokespersons of authorized world opinion. For these spokespersons, needless to recall, are sure to express themselves according to the instructions they have received from those who are in financial control of the media, of our means of mass communications.

Fortunately there still exist here and there some journalists and publications which are not subject to the brazen law of conformity to the politically correct party line. The comments of Pierre de Villemarest appeared in the traditionalist catholic monthly Controverses of March 1997 are here most enlightening, despite the hypothetical character of some of his affirmations:

"Switzerland and the Swiss have helped us much during the occupation, and while no one is ever totally nice, beautiful, sincere, the publicists paid for keeping up the present campaign are in a poor position to deal in morality and the law. An American magazine Vanity Fair has just cast light upon the personality of Edgar J. Bronfman, (the super rich owner of the multinational liquor company Seagram, who is also the president of the World Jewish Congress), with regard to the campaigns against Switzerland and other adversaries of the only thought or claims reserved for some and not for others. Now this magazine has collaborators equally of Jewish origin. This means that nothing is as simple as one tries to make believe. Including about the 'Nazi gold'. The reality is that at this end of the century the globalist Clubs and circles, in which Mr. Bronfman is an essential orchestra conductor, want to hasten their march towards the destruction of the States, the Nations, the peoples who have the wrong desire to want to maintain their culture, their traditions, the fact to belong in Europe, beneath the diversity of languages, to a Christianity opposed to the contemporary materialism, which in the name of a New Order, claimed to be necessary or inevitable, wants to substitute the law of the markets, hence the law of the multinational companies, for that of the States. The course towards a unified currency in Europe issues from this world view, and in this matter, we must say it, Switzerland is bothersome with its financial weight and its administration outside of the control of the globalist gurus."[7]

This collusion between globalists and Jewish organizations would explain the anathemas pronounced by Edgar J. Bronfman, President of the Jewish World Congress, against the Swiss banking system in a conversation of February 10, 1997 and published, the week preceding the statement of President Koller, in the Revue juive of Geneva. Here is what the Journal de Geneve of March 5, 1997 reports of it:

"Edgar Bronfman estimates that if the Swiss bankers do not seize the unique opportunity to reestablish their reputation, he foresees 'the end of Switzerland as a great world banking center, for every essential mark of confidence will have disappeared. It is not only a question of the money of the survivors of the Holocaust, but of all the dirty drug money, or the money of so many dictators which rests there thanks to the banking secret and to so many numbered accounts.'

But the charge of the president of the World Jewish Congress against 'the very essence of the Swiss banking system' about which Switzerland ought to examine itself beyond the question of the funds without heirs, enters a new stage. Up till now, no spokesperson for any of the Jewish organizations which demand that Switzerland assume its historical responsibilities had so frontally attacked the Swiss banking institution. All the more since he adds that 'the free world ... may well end up by finding such a banking system reprehensible.' ... For Edgar Bronfman there are 'positive and revealing signs.' And by evoking the demonstration of Bern, organized by Christian movements or the spontaneous gesture of children desiring to participate, even modestly, in the recently created fund."

The essence of the Swiss banking system lies in no way in the famous banking secret (instituted before the war to protect the interests of German Jewish clients), and still less in the laundering of dirty money, but in the solidity which the gold guarantee of our money gives to the Swiss financial position. The message of Edgar Bronfman was perfectly understood by the Federal Council. This also explains the jubilation of certain spokespersons of organizations which had attacked our country after the statement by Arnold Koller, when they learned of the Swiss financial capitulation. They had been understood and followed. The confirmation of such an attitude of active cooperation produced the most enthusiastic satisfaction of the president of the World Jewish Congress Edgar Bronfman, who expressed himself as the true winner over French Swiss Television on March 10, 1997. 24 Heures of March 11, 1997 quotes him under the headline, "Bronfman finally says thank you":

"I never wanted to make war on Switzerland, on the Swiss government or on the Swiss banks. If I have done it, it is because I was forced to do so. (Forced by whom? we might ask.) But now that the Swiss government has retreated, I invite it to cooperate.

I would also like to tell the Swiss that I do not blame them, nor those who were leading the country during World War II. But you must accept the fact that your decisions had a very high price in terms of Jewish lives and fortunes. "

In is in such a perspective that we must also read the remarks made by Thomas L. Friedman a few weeks ago in the New York Herald Tribune (and reproduced in the columns of the Nouveau Quotidien of February 11, 1997) where he affirmed that the fundamental cause of the attacks made against Switzerland was the fact that Switzerland still refused to submit to the new international order, a moral as well as political order. He wrote:

"How can one place oneself in the margin of History? The reason why this history of Nazi gold continues to remain front stage is that too many Swiss persist in demanding their moral neutrality, in trying to distance themselves from the international community in which, by the way, they do not entirely share.... No, one cannot truly speak of blackmail with regard to this affair. It is rather a question of bankruptcy of moral bankruptcy.... Not only the Swiss bank accounts must be opened, but also the moral accounts and the historical archives of the Confederation."

But we can hardly indulge in illusions. It is not by giving in to blackmail, as did the great Swiss banks on February 5, 1997 in establishing a fund of 100 million francs in favor of the victims of the Holocaust and their descendants, and as did the Federal Council with its Swiss Humanitarian Foundation endowed with seven billion francs, that the incredible covetousness unleashed against our country will be appeased. This is what a Geneva banker noted in 24 Heures on February 6, 1997:

"The payment of 100 million fiance by the three great banks is an absurdity, an admission of guilt, an extortion of funds. This sum is much too high compared to the properties without heirs which will be really found. The future will prove it. It will be noticed that the Jews hurried to collect a maximum amount of money to which they are not entitled ... Now, Switzerland lets itself be insulted. We are arbitrarily assessed a penalty, without justification.... The pressure will continue. This is an installment, more and more money will have to be added. [The three big banks] have lost courage. They are cowards. They pay to have peace."

But our analysis cannot ignore the extraordinary greed, in everyone's view, manifested by such a large number of organizations officially representing the Jewish world, even if the Jewish people itself cannot be identified here with the vices of some of its leaders! And with this thirst for wealth, we could note a very great ability to extract it from a propitious mine! Yet how easily men indwelt by such passions can be manipulated themselves! This aspect of the question which we have tried to examine is made clear by the statements of Abraham Burg, president of the Jewish Agency Immediately after the decision of the Federal Council to establish a Swiss Humanitarian Foundation, Abraham Burg declared to the journalists:

"Suddenly I had the certainty that our two and a half years of struggle finally succeeded, while at the beginning the Swiss treated us with contempt and while in Israel itself the press affirmed that we would not find anything. It is doubtless time to act in a more peaceable manner. The new foundation will have an enormous influence upon the negotiations taking place with 19 other countries regarding Jewish properties. We needed a legal model to apply elsewhere, and now we have it." (Nouveau Quotidien, March 6, 1997) We have tried to examine the realities which hide behind such outbursts which are only the poisoned fruit of an immoderate love of money, a love which is, we are told, the root of all evil.

It seems to me that these various considerations shed light on the situation in which we find ourselves today. The apparently incomprehensible decisions of our government find here an explanation which would take the true gravity of the stakes we face into account. It goes without saying that the spectacular decisions of the Federal Council would precede the popular referendum, the obligatory consultation for any modification of the Federal Constitution. It is also very probable that the anger, the lack of understanding, and the disgust of a large part of the population will lead to the rejection of the decisions of the Federal Council. This is all the more probable as the Federal Council will not be able to explain to the people the true stakes of its policy of treason against the interests of the country, and of the reasons of its suicidal strategy of blind submission to the dictates of the established global financial order.

We must recognize that this new world order, this universal empire, by the moralizing and hypocritical cynicism which inspires it, is of a slyness, an astute hypocrisy without limits. It is to be feared that this New Order of the Ages, which today casts its shadow upon the entire world, knows hardly any hesitations nor scruples about the use of naked force against our country. Must we not fear today that if we persist in our refusal to bow before the established world consensus, we risk to undergo tomorrow a fate similar to that of Iraq and Yugoslavia? Must we not fear that we might in the near future receive as the reward for our refusal of the monetary lie they seek to impose upon the whole world, and as fruit of our love of the liberties of our ancestors and of our attachment to the independence of our country, the invasion of our sky above our cities, our lakes and our mountains by the airplanes of the present ruler of the world?

May God have pity on us and on our country! May He lead us to repent of our evil ways and to seek Him again with all our heart in the divine and human Person of His Only Son, the Lord Jesus Christ, Savior of His Church and King of all the nations of the earth. He Who is faithful to the covenant He has established with His children, Who has so often rescued our country, will He not listen if we return to Him with all our heart, with all our soul, with all our strength, and with all our mind?

JeanMarc Berthoud,
Lausanne, March 1997
Case postale 468
1001 Lausanne

A first file of the Documentation chretienne on the conflict aroused by the question of Jewish funds without heirs in the Swiss banks may be obtained for 10 francs (40 French francs).

(1).Novus ordo seclorum, New Order of the Ages, is a word of the Masonic order which is inscribed on the reverse of the Great Seal of the United States since 1782 and on the American onedollar bills since 1935.

(2). See the Open Letter which introduces the last file of the Documentation Chretienne consecrated to this question (Case postale 468, CH1001 Lausanne).

(3). Text finished March 18, 1997.

(4). Hans F. Sennholz, Money and Freedom, Libertarian Press, Spring Mills, PA 16875, 1985; Hans F. Sennholz, Age of Inflation, Concord Books (P. O. Box 90740, Seal Beach, USA), 1979; Ron Paul and Lewis Lehrman, The Case for Gold, A Minority Report of the U. S. Gold Commission, Cato Institute (224 Second Street SE, Washington, D.C. 20003, USA), 1982. Also see: Pascal Salin, La verite sur 1a monnaie, Odile Jacob, Paris, 1990; L'ordre monetaire mondial, P.U.F., Paris, 1982.

(5). On the history of these questions, see the following works: G. Edward Griffin, The Creature from Jekyll Island. A Second Look at the Federal Reserve, American Opinion (P. O. Box 8040), Appleton, Wisconsin 549138040, USA), 1994; Anthony C. Sutton, The War on Gold, '76 Press Concord Books, (p. O. Box 90740 Seal Beach, USA), 1977. In French: Rene Sedillot, Histoire de l'or, Fayard, Paris, 1972; Henry Coston, Les financiers qui menent le monde, Publications H.D., Paris, 1989.

(6). Seven billion for the Swiss Humanitarian Foundation, seven billion to bribe the Swiss people into accepting the Federal Council's disastrous projects.

(7). Pierre de Villemarest, A l'ombre de Wall Street, complicites et financements sovietonazis, Godefroy de Bouillon, 1996.

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