some keep insisting deflation is the problem

some keep insisting deflation is the problem

Let's accept that deflation is the problem and more spending is needed.

Let's accept that food costs are up due to supply and demand, increased production costs including costs to assure safe products, improvements in food processing technology, etc.

So there's no possibility of hyperinflation.

Buying gold and silver should be done only because part of the west and most of the east want them to back up their currencies are as currency themselves.

Those countries that have and/or produce them may become wealthy, partially through buying and/or keeping them, partially through the pure luck of already having them or being able to produce them.

I think this alone is a good reason to buy gold and silver until, if ever, countries realize holding them is no longer a path to wealth.

As regards hyperinflation, we don't know the size of the money supply, the Fed won't tells us.

More currency creation may provide more jobs providing more goods and services that exceed the rate at which dollars being created.

Maybe it will take more than 3 years of extreme dollar creation from 2008 until after now (8/2011) to bring the US economy back to where it was before the housing bubble.

So the gold and silver buying countries may be wasting their wealth buying more gold and silver, other than for the small use of gold for jewelry and the larger use of silver for industry.

But if this is really the case, why won't the Fed reveal the size of the money supply?

Why hasn't Fort Knox been audited since 1957?

Why doesn't the treasury insist on examining the gold filled with tungsten China claims it received in 2009?

Why won't the government and the Fed tell us everything that's going on monetarily?

It's impossible to know what's really going on without these facts so I, myself, will prepare for the worst and hope for the best.