Peter Schiff tells it like it is! (As Always!)

I was about to write a blog post about inflation figures - the real inflation figures, not the ones that the US government puts out. And, lo and behold, the inestimable Peter Schiff came out with a videoblog on this topic (more or less) just now. Firstly, I would like to bless everyone with a very good source for real (not governmental) statistics about the economy (here). As Mr. Schiff recently pointed out, inflation is probably closer to 10% than it is to the government 3.6% figures. But what I really wanted to talk about was gold. Why is gold getting more expensive? People seem to think there is a bubble in gold! That is very naive thinking, however. Gold is really just a way of observing price inflation. It is not the value of gold that is going up, it is the value of all fiat currencies that is going down (simple supply-and-demand). Supply of fake-money ('toilet' paper) is going up and the supply of real-money (gold) is staying relatively the same, therefore the price relations between the two have to change. A good example to illustrate this is the Swiss Franc - how come gold prices haven't risen that much in relation to it? Simply because until recently it was not being inflated by the Swiss Central Bank!
And I have a few questions to the fiat cultists out there. For example, if it's good to print lots of money and create 'wealth' that way, why is Zimbabwe not the richest country in the world right now? Why is hyperinflation bad, but low inflation good? Or, another example, can we just use toilet paper as money - wouldn't that be just as good? Then we don't even have to spend resources on printing Central Bank notes!

As Friedrich von Hayek wrote: "I do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments." Indeed, it is not an exaggeration to say that. So why do we keep putting up with it?