“Governments always hate gold and silver, because it competes with their paper money.” Bob Moriarty in a recent interview entitled, “Gold is Safe Haven for Looming Crash”

The purpose of governments is to govern. But what governing does gold need really? I am reminded of a quote from the great Roman stoic philosopher, Seneca, “Probably all laws are useless, because good men do not need them and bad men are made no better by them.” When I lecture is often point out that the last place you would want to show up if you discovered a cure for cancer would be an oncologist’s office.

Does this sound ironic? It is not. Shouldn’t someone who spends his whole life trying to cure cancer be overjoyed at the cure? Cure cancer and you destroy his livelihood. The last thing an oncologist with house and car payments and a mistress he needs to keep well supplied needs is to be out of business. So I ask you this… What would our government do if gold were to try and reestablish itself as the basis of our monetary system? A lot of people would be out of work. A lot of important thinking would no longer have any implicated worth. Do the yo-yo’s in places of power in this country right now understand this? No, not really. But a rabbit doesn’t understand your true intentions either when it takes off running from you. It just takes off running from you.

It’s an instinct. And the instinct is always to preserve what one knows. That’s why Columbus gets movies made about him, controversial or not, 500 years after he died. He went against that instinct to preserve what was known and ventured out to find something new. The rewards for his courage were great, but they were not easy in attaining.

There will be no peaceful ending to this mess our parents and grandparents have allowed themselves to be drawn into. The instinct to preserve “what is” is too strong. Look at the markets. Very wealthy, smart people, people much smarter than you or I, are driving up prices of financial stocks and down gold and gold juniors. Instinct trumps I.Q. every time. They are trying to maintain what they know, what they have known, the imaginary tree that will grow for them to the moon, their own private endless summer.

Yes, governments hate gold. And on an intellectual level, they have good reason. Real money cannot be manipulated. Paper money can, in a variety of ways. But I don’t think most government officials at this time in history really have a concept of this. It’s not that complicated for a lot of those people. It’s simple, just like the oncologist. i.e. this thing…good, that thing… bad. This money I know. That money I don’t know. You see, this is not an intellectual process. It’s an instinctual process. It’s not rational, so the pathway to its ultimate end can be incredibly erratic and strange. That’s what we are seeing in the broad markets every single day now. Total strangeness. People know dollars. They don’t know gold…yet. But they will. Soon enough. Just watch how tightly they hold onto those dollars, though, to the very bitter end. Bull