L.S.: Yes, and we also hear a lot about that people argue that gold is in a bubble. Is gold in a bubble?
K.W.: I think the ultimate bubble is paper money that people have built up an enormous stock of faith and faith is the only word that I can think of in paper money. And as paper money collapses, then the price of gold in terms of paper money becomes meaningless. Gold is restored to the same role that it always was which is gold is money. Long before we had the paper dollar or the paper euro people accumulated gold without regard to price. In any other commodity, if the inventories rise, we call it a glut and then the production stops and we work off the inventories until the price falls. In the case of gold, that does not occur. So, I would say in a certain sense, it’s not possible to have a bubble in gold, it’s a meaningless term.
L.S.: When one would have an unadulterated gold standard, there would be no need for Central Banks, right?
K.W.: Correct. Let’s have a free market in money and credit. The government will have no more involvement in the market for gold or money or credit or banking as it should have in computer software. Let people decide if people want to take the gold coin home, they take it home. If they want to put it in the bank, they put it in the bank.
.. I don’t think the system can survive so I would say we’re on the road right now were the system collapses and everybody will be killed. So, that’s why I think it is so important to propose a workable solution for gold to – the key is gold must begin circulating again as money and the key to that is people must be able to earn interest on their gold, and then they will be willing to invest it to make the interest. Those are the two keys; if we do that then we can get away from this crazy, crazy system and the power and the wealth of Morgan and the central Banks will recede. But in a graceful way rather than, bang, you know, all at once.