Forget the Swine Flu and Prepare for Hyperinflation

FORT LEE, N.J., May 4 /PRNewswire-USNewswire/ — The National Inflation Association today released the following statement to its http://inflation.us members:

“It’s amazing how fast swine flu hysteria spread across the U.S. during the past week, despite only one death from the disease. Meanwhile, hyperinflation could soon destroy the lives of hundreds of millions of Americans, yet nobody in the mainstream media is talking about it.

To prove the swine flu hysteria is nothing more than mainstream media propaganda, one of NIA’s founders, known on YouTube as George4title, went down to Mexico City, heart of the swine flu outbreak and exposed the truth about the disease. His amazing footage can be found on our video page: http://inflation.us/videos.html

About a week ago, NIA attended the End the Fed rally in New York City and we were very pleased that a couple of hundred enthusiastic protestors showed their support for ending the Federal Reserve and returning to a sound currency that is backed by gold.

Unfortunately, this event paled in comparison to the 750,000 Americans who attended the 600 tea parties nationwide on April 15th. We believe these tea parties are a waste of time and will only do more harm than good.

Taxes are not the problem, government spending is. It doesn’t matter whether taxes go up or down when the Federal Reserve can just print trillions of dollars out of thin air and steal from the savings of Americans through inflation. All these tea parties will do is encourage the government to create more inflation and eventually it will lead to hyperinflation where the U.S. dollar collapses and loses practically all of its purchasing power.

The people who will get hurt most by hyperinflation are those who Obama promised to protect. Americans getting ready to retire and live off of their savings, pensions and social security, will need to work the rest of their lives and hope that their wage inflation eventually catches up to price inflation. Unemployed Americans relying on unemployment checks will soon receive checks that aren’t worth cashing because the money won’t be enough to purchase even the most basic necessities.

The price of gold has dipped during the recent weeks because the IMF, the third largest holder of gold in the world with 103.4 million ounces (3,217 metric tons), is planning to sell their gold to provide financing to poor countries. We believe this is just a short-term dip that could last a little while longer, but is setting the stage for an explosive move to the upside.

China just announced they increased their gold reserves by 76% to 1,054 tons over the past six years. China’s gold reserves are now worth $31 billion but account for only 1.6% of its total foreign-exchange reserve holdings of $1.95 trillion, compared to the average country which has over 10% of their foreign-exchange reserves in gold.

The bulk of China’s foreign-exchange reserves are in U.S. treasuries and recent comments by top Chinese government officials indicate the country is concerned about the value of their U.S. dollar assets. China has gone as far as calling for a new world reserve currency.

China is clearly looking to diversify out of their U.S. treasuries and into gold; and they can buy all of the IMF’s gold with just a small percentage of their U.S. dollar reserves.

The time to buy gold is now. When hyperinflation arrives, the hysteria will be many times larger than the hysteria surrounding the swine flu.”

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About us:

The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.

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Editor@inflation.us

SOURCE National Inflation Association