Well, here's a little more from the article:
3) What has happened in other countries when an 'inflationary holocaust' wreaks havoc on pricing? Will the (broke) government actually rescind the outrageous "gains" taxation and just print more money?
During historical instances of hyperinflation, the inflation took place so fast that governments funded over 99% of their spending with money printing and less than 1% through taxation.
Let's say for example you had a car that you purchased new for $20,000 and you decided to scrap it for $50,000 worth of metal. The government might force you to pay taxes on the $30,000 fantasy profit. However, if you merely delayed paying that income tax for a few months, it's possible inflation will be taking place so quickly that you will now be able to sell an old beat up pair of shoes for $50,000. Therefore, paying the tax, assuming there still was one, wouldn't be a problem at all.
7) With the current size of our national debt, is deflation even possible?
The U.S. is the most indebted nation in the history of the world with a national debt of $12.7 trillion, Fannie/Freddie debts of $6.3 trillion and unfunded liabilities of more than $60 trillion. Our real debts are now about 600% of GDP and it will be impossible to pay them back. The U.S. will either default on its debt or print its way out of it, creating massive inflation.
Because we believe the U.S. is unlikely to admit it can't pay back its debts, inflation is clearly the solution. We don't see any risk of deflation long-term.
The mainstream media talks about deflation because they see through a rear view mirror. They see some prices having fallen after the financial crisis of 2008, but they don't realize there were temporary forces driving prices down due to artificial forced liquidations and excess inventories that needed to be worked off.
When the artificial pressures holding prices down are gone, all that will be left is the trillions of dollars of newly printed money in circulation that will chase goods and services all at once.
8) What good would it be to elect a few select people to the Senate like Rand Paul and Peter Schiff? Shouldn't we focus our energy and efforts on changing the entire system?
We believe the system is corrupt because of the Federal Reserve and its ability to manipulate interest rates and create phantom money out of thin air. Before the creation of the Federal Reserve, the value of our currency was stable and we did not have the booms and busts that we do today.
In our opinion, the system our founding fathers created would work if we only followed the Constitution. The creation of the Federal Reserve and all of the actions of the Federal Reserve are unconstitutional.
We need to do more than elect a few select people to Washington. We need to replace everybody in Washington with people who will work to protect the Constitution. If everybody in Washington was like Ron Paul, our country would not be on the verge of a hyperinflationary crisis like it is today.
It is because of the mainstream media and how they brainwash Americans, that Congress is full of people who are clueless about the economy and the root cause of all our problems. With the Internet, the mainstream media is slowly losing its power and our hope is that an increasing percentage of Americans will see our documentaries and learn to think for themselves instead of electing politicians based on what the mainstream media tells them.
9) If no governments currently back their currency with gold then why do they still hoard it?
Even though there are no currencies that are still convertible into gold, gold is real money and it is important for central banks to hold gold in order to protect the value of their foreign exchange reserves.
The average country has about 10% of their foreign exchange reserves in gold. However, China currently only has 1.5% of their foreign exchange reserves in gold and they have most of their reserves in U.S. dollars. Due to the massive monetary inflation taking place in the U.S., China's reserves are at risk and it is important for them to diversify out of their U.S. dollars and accumulate more gold.
Although the U.S. has the largest gold reserves at 8,133.5 tonnes, which makes up 68.7% of its foreign exchange reserves, the value of the U.S.'s gold and other reserves is nothing compared to its $12.7 trillion national debt plus Fannie/Freddie debt and unfunded liabilities.
NIA
