Turk: “You and I have spoken many times, Eric, about how the central planners are fighting an all out war against the precious metals. Getting PayPal to close the account of the Swiss Gold Initiative in order to stop donations just goes to show how far they are willing to go....
“PayPal’s bending to the will of central planners is just one example of what everyone who owns physical gold and silver is up against. Nevertheless, this example of central planner intervention provides a strong reason why we must not lose sight of what Congressman Howard Buffett, the father of Warren Buffett, said in a brilliant speech in 1948: “In a free country the monetary unit rests upon a fixed foundation of gold or gold and silver independent of the ruling politicians.”
Regardless of whether we call those opposed to the precious metals as “ruling politicians” or “central planners,” it amounts to the same thing. When the government controls the currency and the institutions that circulate it - like PayPal - the government controls the economy and each and everyone one of us, which is a critically important point to recognize. If the central planners are willing to close this PayPal account, it is clear that they are pulling out all the stops in their war against the precious metals. They will do anything they can to perpetuate the fiat currency they issue.
In the final analysis, however, the central planners cannot change reality. This statement of course flies in the face of the anonymous aide to Bush the 2nd who in 2004 told Ron Suskind of the New York Times: “We're an empire now, and when we act, we create our own reality.” That exceedingly arrogant statement makes for good chutzpah by a central planner bellowing to a reporter about their own self-importance, but the central planners could not stop reality - let alone create the one they wanted - when in 2007 and early 2008 the financial system started unravelling around them.
But that brings up the important point about whether gold is still a safe haven. The fundamental question we have to ask ourselves is whether gold’s 5,000 year history as money will end here? Just looking at it logically, it would be the height of folly to conclude that gold’s history ends here and that we can instead forever rely hereafter on government issued currency. Gold’s history did not end in 2008, and it won’t end here. The checkered history of government issued currency and the crises brought about when credit bubbles pop speak for themselves.
There are countless people in the world who understand that the attributes that made gold money pre-history have not disappeared. They've just been ignored or forgotten. For example, in the charts of crude oil prices in the blog we did last week, we can see that gold still provides two key functions of money. Gold is useful in economic calculation, in other words, for measuring prices. Also, gold preserves purchasing power.
An ounce of gold can still purchase the same amount of crude oil as it did a month ago or as the chart in last week’s blog shows, as it did in 1950. It is the dollar that is changing in today’s world of volatile currencies which fluctuate against each other, with each fluctuation resting upon the word uttered by some central planner. So the dollar is strong at the moment, but not because of some fundamental improvement. Rather, it is because the euro and yen are weak..."
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/11/3_As_Gold_%26_Silver_Rout_Continues,_Physical_Demand_Is_Stunning.html
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