John Williams : Hyperinflationary Great Depression by 2014

John Williams - Financial sense Newshour - 20 Jan 2012 John Williams from Shadow Government Statistics. warns of a Hyper-inflationary Great Depression by 2014

John Williams (in another interview ): Sure. Before we had the financial crisis that broke in 2007 and 2008, the system was headed for hyperinflation by the end of the current decade, perhaps by 2020. That was just the way the government’s obligations were lined up. We were seeing deficits still averaging 5 trillion dollars a year on a gap accounting basis, completely unsustainable. By 2020 we would have been at a point where the government would have had to print the money to meet its obligations. There is no way it could sustain that with borrowing. We had a circumstance develop in 2006-2007 where the economy started to turn down sharply, particularly in the housing area, which helped to trigger a financial crisis. The economy helped to trigger the financial crisis, the financial crisis exacerbated the downturn in the economy, and we saw almost a collapse in economic activity going through the year 2007, into 2008, even to 2009, and it has been pretty much bottom-bouncing since, irrespective of the official pronouncements out of Washington. But in August/September of 2008, the people in Washington realized that they had so loused up the system that they were on the brink of a systemic failure, that the banking system was going to collapse if they didn’t do something. They weren’t kidding about that. We shouldn’t have gotten to that point, but having gotten to that point, they had to do what they had to do and put forth all sorts of emergency spending, lending, guarantees – they created whatever money they had to in order to keep the system from failing. I will contend that they will continue to do that so long as the markets will let them get away with it. The problem is that the cures that they put forth did nothing to resolve the problem. It bought them a little time in terms of systemic stability, but the systemic solvency crisis continues. The banks are not healthy. The big banks are still in trouble. We have another crisis that is brewing here. The U.S. economy did not recover. It, in fact, is still bottom-bouncing, and it is about to turn down again. All these factors will keep the Fed and the Treasury, the federal government, trying to pump money into the economy, doing some form of stimulus, providing liquidity to the banking system. The costs of all that are very inflationary, and that has accelerated the process whereby, if you look over the last year, the actions taken by the Fed, by the federal government, did a lot to kill global confidence in the U.S. dollar. Looking back to the events in July/August of last year, they had the negotiation over the debt ceiling, and the inability to come up with a deficit reduction package or the willingness to actually take the political steps necessary to slash the social spending, which is effecting a looming national bankruptcy. As that fell apart, the rest of the world was watching the United States, and if you look at the market reaction, this was even before the downgrade of the U.S. Treasuries, there was panic selling of the dollar. The Swiss franc was soaring, gold was soaring, and that is one of the prerequisites to having hyperinflation – a loss of confidence – a loss of confidence in the dollar. Then there were all sorts of market interventions. I would contend that the crisis in Europe was a real problem, but there was a lot of effort made to focus market attention on the crisis in Europe as a foil – efforts were made to curtail the rise in gold prices. The Swiss National Bank moved, at least for a short period of time, to tie the Swiss franc to the euro to effectively prop the euro, and to effectively prop the dollar. It is an unstable, very volatile situation, that could break apart at any time, and as it does, there are a number of things that could push it over the edge, such as renewed Fed action, which is a virtual certainty, just a matter of when it hits. But you will start to see this circumstance move very rapidly to a higher inflation, and then as the confidence in the dollar continues to shrink, into a hyperinflation. A lot of people say, “Oh, my goodness, how can you have inflation with a weak economy?” Indeed, we have a weak economy, and there are a lot of problems with what is being reported, but if you look at something as simple as payroll employment, despite all the problems with the reporting of the series, and I am happy to talk about the problems of the reporting issues, it is probably the best quality broad economic statistic that the government publishes. Just don’t pay too much attention to the month-to-month changes. It is much better than the GDP, and it is a coincident indicator of economic activity. If you look at what has happened there, it plunged in late 2008 and 2009, and pretty much it has been bottom bouncing. It has moved a little bit higher, but it is far from having recovered the level that it was before the official recession started in 2007. I am talking about the level of payroll employment, the number of jobs that people are being paid for on company payrolls.

John Williams: Hyperinflation By 2014 - 1/20/2012

John Williams from Shadow Government Statistics : No Way Out–Hyperinflation by 2014 . John sees no way to avoid hyperinflation, as some of the warning signs are getting worse: rising real inflation rates, massive Fed monetization, foreign nations dumping dollars, and the US losing its triple A credit rating.

John Williams is author of “Shadow Government Statistics,” an electronic newsletter service that exposes and analyzes flaws in current U.S. government economic data and reporting, as well as in certain private-sector numbers, and provides an assessment of underlying economic and financial conditions, net of financial-market and political hype. john williams shadowstatscom Mining Stock Talk Interviews John Williams of ShadowStats.com ."John Williams’ Shadow Government Statistics" is an electronic newsletter service that exposes and analyzes flaws in current U.S. government economic data and reporting, as well as in certain private-sector numbers, and provides an assessment of underlying economic and financial conditions, net of financial-market and political hype. In this powerful interview, John shares his research realities on unemployment, the staggering growth in the U.S. Monetary Base, a coming “hyperinflation” , gold, and what he’s doing to prepare and protect his family going forward. Williams believes that the printing of trillions of dollars to fight the depression will lead to a "hyperinflationary depression". John Williams aka Walter J. "John" Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth's Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies. John Williams' Shadow Government Statistics is a monthly electronic newsletter that exposes and analyzes the flaws in current U.S. government data and reporting, as well as in certain private-sector numbers.. It also looks at the financial markets free of the hype so often put forth in the popular financial media. Generally published on the second Wednesday of the month, the newsletter is supplemented by Flash Updates and occasional Alerts that highlight unusual developments. Williams is advising people to stock up on gold and booze to bargain with once the hyperinflation makes dollars worthless: “Three or four years into the future I think we could be in a hyperinflation, within the current year you’re going to see much higher inflation than most people are looking at,” Williams told MarketWatch. Williams said that his definition of hyperinflation would be a situation in which a $100 dollar bill would become more functional as a piece of toilet paper than a store of value. “This is a time when you want to preserve your wealth and assets because inflation will knock the value out of it,” he added, advising that people buy physical gold and assets other than the U.S. dollar. “Then when the hyperinflation hits you’ll see disruption of normal commerce, you won’t have enough $100 dollar bills to buy what you want,” said Williams, adding that items to barter with, such as a bottle of scotch, would be more valuable than actual cash, even in large quantities.

Economist John Williams of Shadow Stats on Goldseek Radio - Aug. 24, 2011

John Williams of Shadow stats talks about the road to hyperinflation 2014 and the fake government numbers , the real figures on unemployment the GDP the Inflation the consumer price index and the overall US economy , John Williams who is an independent economist not funded by any government agency , his figures are different from the official figures that the US government shows publicly.....Economist of Shadow Government Statistics and shadowstats.com founder John Williams claims government employment and inflation numbers are inaccurate, and economy is shakier than indicated.There is no way we could possibly pay our debt either we raise the taxes or we do not either we cut social security or we do not , we are headed towards a Wiemar Republic type of hyperinflation and a banana republic kind of government ..John Williams of Shadowstats has repeatedly warned that our economy is not doing as well as some would have you believe. From unemployment to GDP to current and future liabilities, there are fundamental problems that will not be resolved anytime soon - in fact, they're likely to get worse.The end result according to Williams? A hyperinflationary depression...the whole system is collapsing

John Williams of Shadow Stats, - Radio Liberty 12 May 2011

John Williams of Shadow Stats o the real figures on unemployment the GDP the Inflation the consumer price index and the overall US economy , John Williams who is an independent economist not funded by any government agency , his figures are different from the official figures that the US government shows publicly....

John Williams of Shadow Stats : The Fed is a Private Corporation

John Williams on the true state of the US Economy

John Williams of Shadow Stats : what you have to keep in mind is that the FED is a private corporation owned by commercial banking and commercial banking interests , although it may have a mandate from the federal government that you have to work to maintain sustainable economic growth and and you have ti contain inflation its primary mission basically is to keep the banking system afloat and healthy , and the banking system is not healthy when there was fear of a system collapse back in 2007 , in 2008 whe the TARP was introduced , they weren't kidding the system was on the brink of collapse.....