A few things come to mind reading this.

1. In past deflationary times, people stuffed money in their mattress/ and saved.  This time people have debt to pay down which has the same effect as not spending.  The piper needs paid sometime.

2. The Fed is owned by it's member banks.  A 50% dollar devaluation would be vary costly to any bank who lent money.  They have allready demonstrated that they will go to extreme lengths (0% fed rate for extended period) to protect their loans from defaulting.

3. Remember who has all the short positions in the gold market.

4. Eventually this will be the endgame IMO, but will be done only after confidence is lost in the dollar as a life preserver and not because they want to.