"The function of gold is to force nations to sell internationally an amount roughly equivalent to why they buy internationally." --James Dines, The invisible Crash page 358.

It seems to me that the key word here is "force." Most people are not capable of "doing the right thing" unless forced to do it. This is why we have laws. Truly good or honest people have no need of laws. We need not do a survey and try to quantify how good and honest people really are. The very fact that laws exist gives us the answer we need.

Without controls, just about any system is set up for abuses. And abuses if let to run unchecked will grow into greater and greater abuses. In a capitalist system, misallocations of capital will be the sign that such abuses are present. Non-sensical interest rate levels, large amounts of wealth being acquired by the unintelligent and non-productive, interpretations taking the place of realities.

Are we really much different than the 12 year old who thinks it's time to start smoking cigarettes, because "he can handle it" or the 35 year old who starts a cocaine habit because he can handle it. There are rules for a reason. We ignore them at our own peril. Pride does indeed come before a fall. And the greatest pride perhaps is that we understand better than gold what things should be worth.

We don't. I don't. You don't. Warren Buffett Doesn't. Nobody does. Bull