The Danger of Fiat Currency

This is the image with which Human Events presented me this morning as part of a fear piece designed apparently to sell gold. Here's some of the text:
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The Writing is on the wall!
The Current administration is Taxing and spending our future away!

Japan and China our Visa & MasterCard, have now cut our credit limits and are Secretly disposing of our debt/U.S. T-Bonds. Behind the scenes, things are getting worse....yet, mainstream media is saying "The Recession is over....Stocks and Housing are now Good Buys"

Would Main-Stream media Lie?
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Well I'm as concerned as the next person about the potential weakness of the dollar, but I think this kind of scare mongering is unwarranted. The likelihood is that we're going to experience some high inflation in the next couple of years, but I don't think we've gotten to the "abandon ship, away all boats" point. We could get there I suppose, but the good sense of the American people is likely to intervene in 2010. I'm waiting until then to decide to panic or not.