"Peter Bernholz, a leading expert on hyperinflation, states unequivocally that "hyperinflation is caused by government budget deficits."
Hyperinflation is indeed caused by government deficits BUT ONLY when governments are either unwilling or incapable of financing their deficits by means other than debt monetization. At the moment that clearly does not seem to be the case in the USA, Britain, Japan or Europe. For instance, in the case of Greece the country is on the verge of defaulting and not on the verge of experiencing Hyperinflation.
"Next year's US budget deficit is projected to be $1.3 trillion."
Impressive and challenging, but by no means unmanageable. Total net debt to GDP is about 68% while during the World War Two it reached more than 100% and to my knowledge without the country having fallen into a state of Hyperinflation and the same can be said about Japan where the current net debt to GDP ratio is higher than 200%.
" During the time of Christ, an ounce of me purchased a Roman citizen his toga (suit), a leather belt, and a pair of sandals. Today, one ounce will still buy a good suit, a leather belt, and a pair of shoes."
Had one of my ancestors living at the time Jesus Christ left me a single dollar capitalized at the real interest rate of 3,5% p. a. undoubtedly that by the date of my birth I would have been the richest person on hearth without parallel in all human history.
"I cannot be: ... Inflated (I can't be reproduced)"
Gold indeed cannot be reproduced but gold when used as money has caused inflation too. That was the case in Europe, for instance, when the influx of gold and silver from the New World arrived there or when gold was discovered in South Africa.
http://en.wikipedia.org/wiki/Price_revolution
"As money, I am: ... Divisible (you can use me in tiny fractions)
OK, go and attempt to buy a book costing 17 dollars from the USA on line through Amazon an try to say to the publishing house the following: in payment please allow me to mail you a few specs of gold.
"The monetary base has grown 205.8%, while my price is up 65.8%. This alone implies that my price in dollars is likely to climb much higher."
An increase in the money base does no imply an increase in prices. Obviously that who ever wrote this prose does not know that. You can give money to the banks but it is up to them to lend it. That is why inflation in the USA has been so far negligible not withstanding the continuous prognostication of hyperinflation around the corner since 2008 being made by people like Peter Schiff.
http://www.hyperinflation-us.com/
I can, if I so wish, to carry on like this but I think that there is already enough said about this piece of publicity clearly designed to induce people to buy gold.
