Here are some historical tid bits upon which we can reflect from time to time providing emphasis regards how far governments can take inflation etc.:
The worst inflation recored involved the Hungarian Pengo which required the Hungarians to adapt to an accounting structure based upon light years.
During the 1920’s German Nightmare Hyperinflation a loaf of bread exceeded 300,000,000.000 marks in price; while people in the US today grumble that a loaf costs $5. How many people here in the US realize that during that period of German inflation a German mortgage went as low in price as one US penny? Something for all the present US Real Estate Gurus to think about do you think, even though our present US inflation rate is still rather tame by comparison?
Paper money was invented by the Chinese and sense that time paper money has caused the demise of more Empires than that other famous Chinese invention: Gun Powder.
To initiate your greater understanding regards the topic of inflation, you are encouraged to go to the Von Mesis Institute webside to find their 70+ page report, “Fiat Money Inflation In France” by Andrew Dixon White: How It Came, What It Brought And How It Ended.
It ended when Napoleon demanded that the French Ministry supply Napoleons’ troops with gold coins in substitution for the consistantly depreciating fiat, I Owe You Nothing, paper assignants with which he could pay hs troops or they were threatening to walk off the battle field and let the French Ministry fight its’ own battles. Needless to say Napoleon received the gold coins he demanded.
What would happen right here in the US today, if all US military personel demanded to be paid their salaries in gold coins only?
Hans, Otto, Alexander, Exhavier Berr, otherwise known as the Knome Of Zurich, once years ago when steping foot on American soil from Switzerland quipped, regarding America’s penchant to issue paper I Owe You Nothing, fiat paper money: “WEEEEEEEEE…..paper money!!!” Are we now just beginning to understand exactly what Hans’ pronouncement designates to us? Perhaps he forsaw our gutteal response migrating towards: “Whoa, is me paper money?”

RUSS SMITH, CALFORNIA
resmith@wcisp.com

Economist John Exeter decades ago predicted a flight from all paper money into gold saying: “There is a big battle going on in the world between paper I Owe You Nothing Money & Gold Money. Paper is abundant; while gold is scarce & so gold will ultimately win this battle in a bigger and better way than anyone can immagine.” He illustrated his theme by using a picture of an inverted pyramid with all paper assets resting on an apex of gold saying that the ultimate mania rise in the gold price would occur when all the worldwide paper assets resting upon the gold apex attempt to flee into the ultimate security of the gold apex by buying gold, in order to escape all the hideous dangers of paper I Owe You Nothing, fiat paper assets and reasserting the predominance and pre-emanance of the superiority of gold as the only real worldwide monetary money.
It would appear that ultimately, in order for economist John Exeter to be proven correct, the only dominant deflation such as he asserts will take place, once there is a worldwide repudiation of paper money by the masses. In the mean time The American Institute For Economic Research In Great Barrington, Mass., (888)528-1216, is asking us to buy gold not to make money but to have money under any and all circumstances. Presently, if we buy gold as an inflation hedge to recoup more $’s from gold’s rising price, those $’s will buy less due to inflation plus what we may like to believe are profits will be taxed to the point that government is seeing to it that we even loose far too much of our original capital investment when we purchased our gold. The only beneficiary then from our gold purcases and sales is government whose inflationary policies continue robing us of our earned capital by the loss of buying power resuling from our governments inflationary policies. Remember: the powers to tax are the powers to steal encluding the inflation tax governments prefer to hide from us at tax time. We can’t write off what their inflation steals away from our buying power can we and they don’t allow our income tax advisor to take that loss into consieration either do they?
However, once the system collapses from total currency repudiation into massive, worldwide deflation, your gold will be appraised at the new level of pricing for everything without the full force of government intervention from overtaxing your assets etc. If you need greater accuracy of advise/evidense and exconomic understanding, please subscribe to the American Institute For Economic Research’s Research Reports & Investment Bulletins plus please request that they provde you with their bonus report in the form of their Chart Book which will profoundly depict the depreciation of the purchasing power of the US $ etc. They are only a Toll Free telephne call away when you get a chance and their prices are very reasonable; as a charitable, not for profit, research organization working in behalf of the American people.

RUSS SMITH, CALIFORNIA
resmith@wcisp.com