The predictions of the report you refer to are:

PREDICTIONS FOR 2012:

• DJIA = 27,000+
• S&P 500 COMPOSITE = 3,000+
• NASDAQ COMPOSITE = 6,400+
• GOLD = $4,300+ per ounce

Those predictions were based on inflation;

The question I have is how will cost inflation due to decreasing currencies relative to 'hard' assets affect salaries of people; will there be a time lag due to tough times so we all have to suffer for a while?

It is hard to see DJIA up that much if operating costs for most companies will increase due to inflation if people are not willing or able to pay for it?

Gold I can see, the others I am not too sure about