2014-Crisis in Dollar Will Trigger Inflation-John Williams

WILLIAMS_092_wade.JPGBy Greg Hunter’s USAWatchdog.com   (Early Sunday Release)

Economist John Williams thinks 2014 will mark the beginning of hyperinflation.  Williams contends, “You are going to see, early on, a crisis in the dollar that will start to trigger the inflation . . . as the inflation picks up, that’s going to savage the economy, which is already in a depression.  It never recovered.”  Forget what you have heard about the so-called recovery.  Williams says, “The consumer is in trouble.  There is nothing happening to turn the economy around.”  The weak economy is bad news for the dollar.  According to Williams, “Anything that would suggest deficit deterioration here, and a weak economy would do that, will have a devastating impact on the dollar.”  And if foreigners start selling some of the 12 trillion U.S. dollar based assets, such as bonds and currency, things will turn ugly fast.  Williams says, “We’re dependent on the rest of the world continuing to go along with us and continue to support the dollar.  That’s not going to happen.”  So, the big question everyone is asking is when will the buck take a hit in value?  Williams says the dollar will likely begin selling off before the middle of this year, and he adds, “It’s really going to be a currency panic . . . when the fundamental selling pressure really starts to pick up, when the selling gets heavy . . . in turn, the weakness will be seen in a spike in oil prices and a spike in gasoline prices.”  Williams says there will be a panic out of the dollar and he predicts, “Once you see a massive sell-off here, I see the game as being over.”  Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com.      

 

Comments
  1. Rich

    Sounds like time is short, and we all need to be making last minute preps for this coming wave of inflation / hyperinflation. Thanks again Greg for bringing us the real deal. I suspect you have helped preserve many lives.

    • Greg Hunter

      Thank you Rich. To be “forewarned is to be forearmed.”
      Greg

      • allen ols

        Capitalism
        Three contractors are bidding to fix a broken fence at the White House. One is from Chicago, another is from Tennessee, and the third is from Minnesota. All three go with a White House official to examine the fence. The Minnesota contractor takes out a tape measure and does some measuring, then works some figures with a pencil. “Well,” he says, “I figure the job will run about $900. $400 for materials, $400 for my crew, and $100 profit for me.” The Tennessee contractor also does some measuring and figuring, then says, “I can do this job for $700. $300 for materials, $300 for my crew, and $100 profit for me.” The Chicago contractor doesn’t measure or figure, but leans over to the White House official and whispers, “$2,700.” The official, incredulous, says, “You didn’t even measure like the other guys! How did you come up with such a high figure?” The Chicago contractor whispers back, “$1000 for me, $1000 for you, and we hire the guy from Tennessee to fix the fence.” “Done!” replies the government official. And that, my friends, is how the stimulus plan will works.

    • Rodster

      “China Services PMI Crumbles To 2nd Worst Level On Record”
      http://www.zerohedge.com/news/2014-01-05/china-services-pmi-crumbles-2nd-worst-level-record

      When the fuse gets lit, the global financial meltdown will be like someone setting off a crate filled with firecrackers. There are going to be sparks and explosions everywhere. I’ll repeat, that China is no better off than the US financial system. It’s a rigged system just like the US. When this crisis starts there will be mass panic around the world and Governments will collapse that’s if someone like John McCain doesn’t decide to start a war first.

      The end result I keep seeing is the IMF and Bank International Settlements getting the green light from this meltdown to institute a global currency. I get the sense that’s where all of this is heading towards. Every Fiat based reserved currency has failed. It always starts off good because it’s backed by Gold but then the greedy politicians find a way to cheat the system.

      • Galaxy 500

        After The great depression, people didn’t trust banks for generations. Do you think people are going to be gung ho to agree to a world system where they have zero influence after the one crashed and burned where we had some say so. Plus I don’t see China and Russia giving up control to the rest of the world. Just my opinion.

        • Rodster

          This is just my opinion. Once the meltdown begins, I think we will see both the IMF and BIS “Bank International Settlements” step in to restore order and stability to the system. For the same reason you noted which I agree with. Once the financial system collapses no one is going to trust any reserve currency including the Yuan if China decides it wants to take the mantle from the $USD.

          I could see the IMF/BIS saying we’ve had enough of this reckless monetary destruction so we want the world to be under one currency and we will oversee it. Of course we can laugh at their policies to see what they have done to the EU but there is a lot of power and control the Central Planners want once the system collapses.

          It almost happened in 2008 in the US and that would have shaken all the world markets and economies. Needless to say the global financial system is in far worse shape globally in 2014 than we were in 2008.

          • Galaxy 500

            I’m thinking no one is going to trust anyone’s fiat. After being burn badly, I know I am not going to be eager to

          • Oracle 911

            “BIS and IMF will restore the order”, I envy your optimism. IMF is dependent on money lending of its shareholders and BIS is central bank of central banks, and most of the central banks are in printing mode, which means they have little or no assets compared to money-supply .

            Only positive about BIS is one thing, its buying gold, but compared to China or east is nothing.

      • Rodster

        “Has Fukushima’s Radioactive Wave Already Hit California?”

        http://www.infowars.com/has-fukushimas-radioactive-wave-already-hit-california/

        Predictions that Fukushima’s radioactive ocean plume would hit the west coast of the U.S. sometime in 2014 may have already come to pass, with a new video showing Geiger counter readings of background radiation at a beach in San Francisco over five times the safe level.

      • Don Johnson

        They will always start a war to save themselves from revolution. Chinese elite especially cannot afford that.

  2. Ugly

    Greg,
    We that are paying attention know that the Day of USA financial judgment is coming. As the Jews asked Jesus, ‘….what are the signs of the end…’ What would you say are the top 5 signs that we should be looking for? Here is my guess.
    1. Overall inflation increase
    2. T-Bill inflation, such as rates paid
    3. Dollar Index. When below 76, then the toasting is near
    4. Stock Market panic. Not the big boys, but the little guy cashing in.
    5. Health Care BS that robs billions, thus people do not eat out anymore….

    What is the big indictor, or the top 5 that will be the beginning of the end….

    • Greg Hunter

      Ugly,
      All good signs. The main three are gold the USDX and the 10-year Treasury. I think when the 10-year hits 3.5% it’s going to crash hard.
      Greg

      • Ugly

        Greg,
        I follow the logic behind Gold and the USDX, but not quite on the 3.5% TNX. In the past, the TNX has been above 4% quite often. Even in Reagan’s heyday, the TNX was in the 6-7% range. Is the 3.5%+ TNX due to the amount of monies in TNX and interest paid on those versuses years past? Why is a 3.5% TNX disasterous now and not then? Just curious. thanks….

        • Liquid Motion

          The TNX is important for a number of reasons. The main one is the 15 yr mortgage rates are based on 10yr treasuries. Additional to that consumers and businesses face increased costs of financing in an anaemic economy and a real estate market on the brink. A dent in real estate is not what USA needs right now. June 2012 the TNX was at 1.44%. How do mortgage holders bare the brunt of a 100% increase in rates in a year and half ? Something is about to give.
          Another issue is that the steepness and the speed of the move in TNX is indicative of selling. That can be construed to be a sign of optimism. Go figure ?

    • Galaxy 500

      The billionaire are already leaving the market

  3. Rodster

    Quote: “You are going to see, early on, a crisis in the dollar that will start to trigger the inflation . . . as the inflation picks up, that’s going to savage the economy, which is already in a depression. It never recovered.”

    That’s been my contention all along since 2008. IMO we then entered and have been in a depression and not as the “presstitutes” like to say a “great recession”.

    The Govt has so fudged the numbers that they made it appear we were just in a hard recession. When the financial, banking system, auto makers all nearly collapsed in 2008, that had the smell of a Depression with a capital “D”. If it weren’t for all the Govt programs to help the those without jobs or too poor to buy food, we’d be seeing food lines like those we saw in the Great Depression.

    So unfortunately things can only get worse but the media continues the Govt propaganda that everything is OK.

    • Greg Hunter

      Rodster,
      Your contention has been spot-on my friend!!
      Greg

      • jc Davis

        Rodster you nailed it. Even if they continue the tapper they cant pull off a world caper. Propaganda works well on spoon fed people. The rest of the world will not like being lied to. Most Americans seem to enjoy a good lie.

    • allen ols

      ugly, rodster; inflation will be severe; BUY FOOD, GAS, OIL, CHAINSAW- MIX, BLADES, BULK, FOOD OF ALL KINDS

      FOPUSAWD

      AL OLS

      • Ugly

        allen.

        No doubt. I have been slowly getting a food supply together that consists mostly or rice, beans, potato flakes, dried milk, and oats. Also, every October, we fill our freezer full with local beef and sweet corn. We also have two garden spots in our backyard. I recommend everyone to have a garden.

        We are lucky where I live, in the land of potatoes–yes Idaho. I also work in agriculture and that is why I have some silver coins, to buy goods. Even if 98% of all potatoes left eastern Idaho to other markets, the remaining 2% could still provide 500 lbs for everyone that lives in this 100 mile area of the eastern Snake River plain. People will need to be civil and not panic. The days of the free rides are coming to an end….

        • allen ols

          Ugly

          I just picked up another 4kva preditor, harbour freight gen for 279.00. I need a couple of full sine wave inverters, and the chinese just produced a 30.00 handheld ham radio, great for recieving. Garden, and knoledge is super, ag. experience is invaluable.
          A family in one of the local churches, ‘wife is flt attendent, 3 kids, husband is in nursing school, and sells medical supplies.
          I learned their hvac went out and it will be next wednesday bfore they can get it fixed. My wife said they have enough fire wood for one more day, and temps here will go to 10 below. Of course i hauled him a load of perfectly seasoned red oak, some ash, but couldnt help but wonder, “this guy is not ready mentally for what is on its way” , He will have to be carried on the back of some knoledgeable survivorlist, and my impression, he couldnt hold out for a 30 day elect. black out, someone else would have to take care of them, like family members.

    • Mitch Bupp

      I agree too but what we have now is not a depression but a reset of economic power worldwide. The dollar is losing just like the pound did after WWII. This economic reset which is going to gut the high standard of living here in the US is already making a new norm which we do not have the economic capacity to rebound.

      • Rodster

        Mitch, the economic reset IMO has not happened yet. That is what’s coming. What we are now seeing is all the main players moving their financial pieces on the Chess board waiting for someone to call checkmate.

        The financial reset will be SCARY because the world has never been entangled in an interlinked financial system that is hanging like a loose tooth. You then add every economy around the globe issuing Fiat currency and IT-IS-A-RECIPE- for DISASTER times ten.

        I think TPTB are trying to move the reset when it happens to a Global Currency, possibly followed by a One World Govt.

        I can easily see the BIS and IMF using this as an opportunity to call for a global currency where NO one Nation has the power to hold the world’s financial system, HOSTAGE !

        • lastmanstanding

          If you look at blogs around the world, you will realize that everyone knows who is behind the IMF, BIS, FED, etc.

          No one will bite the hook this time…no one.

        • lastmanstanding

          If you read the blogs from around the world, you will realize that everyone knows who is behind the IMF, BIS, FED, etc…with the exception being most of the US. But they will.

          No one will bite the hook this time…no one.

        • Don Johnson

          The only way these nations will be able to maintain order is war. Governments will establish total control and issue ration cards once again. People will be relieved, frightened, brainwashed, drafted, and extinguished. This is the culmination of the progressive dream for a hundred years. Population control, er elimination. Robots can do the labor in the aftermath, most workers will not need to be replaced. This is the only way to reliably terminate a couple of billion human beings without blowback. Too many questions would arise with disease, and too uncontrollable with mutations.

      • allen ols

        mitch

        Go to blogtalkradio.com and listen to Jim Garrow interview. Jim Garrow 45 yr covert cia vet, has blown whistle, and they tried to assisinate him last thurs. He said usa voted a marxist muslium in WH bent on the purpousful destruction of usa. Start listening around 48 min, into the interview, all prev. stuff is chit chat. Pastor lindsey williams, said the elite, plan to use obamacare to crush the us econemy on purpose.
        One world digital currency, One world govmnt, and Jim Garrow acuses the church for letting the 503-c tax exempt status to suppress the voice of the men of God, and turn a blind eye.
        My belief nothing is safe, gold, food, land, etc. They will take your gold, our land, etc. these are biblical times, let him that is on the rooftop, not go down into the house and get some stuff, but flee immediatly to the mountains..I just happened to pre-position stuff already in the mountain, ahead of the fleeing, lol
        Garrow said Tom Clancy was assinated, and warned alex jones. Remember, he was a part of this corrupt bunch of, ‘ as jim willie puts it’ langley boyez.

        fopusawd

        alols

    • Chris

      Treasury, corporations, etc. don’t lock in rates and pay off debt…they continually roll over debt and simply service the interest payments. So, It’s not about the actual levels- it’s all relative to what corporations, government, Treasuries are being rolled over from…since 1980 rates have continually been rolled from higher yields to lower yields offering an advantage (a gain) in continually rolling debt to cheaper financing. So despite continually taking on more debt it’s been cheaper and cheaper to pay the interest.
      But imagine now w/$17 T in Treasury debt, record corporate debt, state, muni, RE/CRE all entirely dependent on ever lower rates to allow the service of this interest to be manageable…a small uptick in the 10yr to 3.5% puts big interest payment increases on the Treasury debt (primarily to the non-domestically $5T in foreign held notes/bonds; ie, no velocity, no money multiplier to $’s leaving US), this would move 30yr fixed mortgages to @ 5% and would destroy the only leg of the stool that was supporting housing appreciation (no wage increases, no credit growth, no household formation gains)…suddenly buyers have to pay far more for debt service and thus housing prices go down substantially. Selling begets selling.

      Now, I don’t believe rates will rise but these would be some of the very negative early implications. Instead, I believe the dollar will be sacrificed (weakened substantially…think significant stagflation via rapidly rising import prices while wages are stagnant) making US exports far more attractive and making US debts (internal/external) easily paid back in ever weaker dollars. Middle class and savers destroyed but those w/ real capital assets or PM’s or other tangible or international assets will survive the period.

      • J C Davis

        Chris thank you for somewhat simplifying a very complex subject. I would like to ask you what would happen if in this election year the interest rates rise 5% and congress raises min wage to 10.00 hour ? Thanks again JC

        • Chris

          neither is likely to happen so not sure it’s really worth speculating the impacts other than both would be bad…fewer companies, fewer jobs

  4. Vincent Cate

    I can explain how hyperinflation happens using many different theories.
    http://howfiatdies.blogspot.com/2013/09/hyperinflation-explained-in-many.html

  5. mohammad

    Greg,

    POWERFUL INTERVIEW IS THE LEAST TO SAY ABOUT IT.
    WOW!
    It is very frightening indeed to have that close timing by a reputable person who knows the real numbers, BUT,
    And always there is BUT:

    Here is what will come from the left field that some are missing.
    Lebanon and Syria have to the tune of 300 tons of gold, true most of it is spoken for by the Russian to finance the war but the eye is on it like a bald eagle on its prey.
    I will remind you with what Mr Williams had said about propping the dollar with dumping physical gold in the market and I will remind you when the price of gold reached 1900 it went down and never looked back after the fall of Tripoli Libya and you can go to the dates of the two incidents to verify.
    So expect an invasion in 2014 to Syria Lebanon by the west with Turkey as a spear head to STEAL THEIR GOLD.
    Remember this please:
    1- The west is putting Ardogan of Turkey in a hot water with all the corruption scandals that is been released recently BY US, yes BY US through their recent deal with Iran’s Rouhani who exposed the agent that was helping Iran circumventing the sanctions with Turkey, THEY WANT FROM ARDOGAN something and I think it could be an invasion to Syria.
    2- there is a rise in radical al-qaeda In Lebanon that is threatening the Christian component there, that by itself is a big call to France to intervene and I do not get surprised if i find France claiming its old colonies Syria and Lebanon.
    3- there is a heating up is going on in Iraq now and that will connect it to Syria all the way to Lebanon.
    So an invasion to steal the gold is in the card and that can DEFER what Mr Williams had been saying here!
    Russian’s response?
    Well! God help us all, I know one thing for sure, US WILL NOT GO DOWN WHILE THE REST OF THE WORLD IS LAUGHING!

    • Greg Hunter

      Mohammad,
      Very interesting and nothing would surprise me at this point. Thank you for this analysis.
      Greg

    • Rebecca

      Mohammad, please forgive my country-folk naiveté, but would you please expound on what you mean by: US will not go down while the rest of the world is laughing.

      Thank you.

      • Ugly

        Rebecca,
        In my humble opinion, I think what mohammad was saying in paraphrase was that the USA will nuke the piss out of anyone that tries to get in the middle of the petrodollar and central bank.

        It is sad as to what we have become….

      • mohammad

        The world is tangled with US financially (Dollar is world reserve currency) if they think they (China, Russia, Germany, India…) can have a currency war with US and win they are dead wrong, their economy will implode before US.
        THEY WILL NOT LAUGH SEEING THE DOLLAR TANK.
        Whether they like it or not they are in the same hot water US is in!

        • Rebecca

          Thank you, Mohammad and Ugly for responding.
          I understand now.

  6. Tim

    Happy New Year Greg, This was an outstanding interview with well respected John Williams. A+

    • Greg Hunter

      Thank you Tim For the high grade!!
      Greg

  7. Meatdawgm

    Great interview with J.W.
    Greg, what do you make of billionaires like Buffett, Paulson, and Soros dumping their stocks in massive numbers? Annnnnnnnnnnnnnnd……………….
    1) Are these multi-billionaires shorting the stock market and how can you find out if they are?
    2) Where are said fatcats putting their money: metals, real estate, other currencies, or foreighn stocks?
    3) How long before the lowly millionaire investors and the gneral public catch the drift and bail out too, or are tehy going to be left holding the bag?
    I know I’m asking a lot but if you could elucidate on this I’d appreciate it, thanks.

  8. gerald

    Hi Greg. That was an ear full. You are to be commended for having such an intelligent guest on. I really dread what may be coming soon. There are so many people who don’t have a clue. They know something is amiss, but just cannot put a finger on it. I wish everyone could hear this broadcast. By the way, I am closing on selling my home the 31st of this month. It was originally set to close on Feb. 28th, but the bank called my realtor and said they could not wait that long because interest rates are fixing to go way up. That, along with what John Williams just said, looks very troubling.

    • Greg Hunter

      Gerald,
      Thank you for the info from the real world.
      Greg

    • Kappy

      Not your fault, buddy. They have been re-posting that story/ad every few months, word-for-word, with just the date at the top updated, for the last year and a half.

  9. Justin King

    Considering that Williams has ALWAYS had all the stats, his prediction of 90% in 2014 has tremendous gravitas.

  10. Scott Nelson

    Greg, appreciate the information you are sharing and the guests that are coming on to share the truth! Very few Americans really want to hear the truth and want to continue believing the lies that the main stream media and Washington DC is propagating on a daily basis.
    I believe we will see a massive global currency re-set involving hundreds of currencies basing the new valuation on each countries assets (which the USA has none). I believe we will see the USD lose about 30% in this global currency re-set. It is certainly going to be an interesting 2014. We must all prepare and get ready for the shaking coming to our country.

    • Greg Hunter

      Thank you for your support and kind words. We will be lucky if the dollar only losses 30% of its value.
      Greg

  11. John M.

    Thank you Greg for bringing us John Williams, he doesn’t give many interviews over any one year but it’s great when we can listen to him. You once again have a real gift in getting the most from your guests in a short period of time.
    Mr. Williams is stating the obvious, that hyperinflation is surely coming despite the fact that we are in a long, protracted structural depression. Most economists don’t think this is possible, especially ones like Paul Krugman and those at the Fed.
    I think foreigners like China, India and Russia will start the stampede out of the U.S. dollar but things will get really unbelievably ugly when Americans see what happens when monetary inflation runs its course like it did in Weimar Germany, Hungary, Zimbabwe 2000, etc. It’s an absolute certainty, just the timing and minor details are difficult to determine.
    Americans are not smart or tough enough to accept what must eventually come, as previous civilizations probably were much more self-sufficient, morally and socially responsible, largely Christian, and just more determined to survive. I predict that America will likely take a much more socialistic totalitarian shift in our governance than it already has.
    The collapse of the dollar will leave a vacuum that will be filled by a one-world currency that will be dictated by a one-world government. A new one-world religion (that serves nature and man but not God) will probably give the moral justifications for this increased collectivism of manipulation and control, with the sovereignty and freedoms of Americans being sacrificed at the altar of the security and common welfare of the entire world. Goodbye free markets, sound money, freedom to worship, constitutional liberties, etc. etc.

    • Oracle 911

      In your last paragraph you nicely described the plans of the elites.
      Luckily the Russians instinctively oppose to these plans, from the beginning. Otherwise they would be case to exists as nation and country at least since 1998 more likely since 1918/22.

  12. Ugly

    The US economists claim that 70% or more of our economy is consumer spending. The signs may be already here in that I have not seen a report on Christmas Holiday spending yet. If it was good, from Black Friday through Christmas Eve, we would have heard how great it was by MSM and how it reflects our recovery. But I have heard nothing. That tells me it was not good and the signs of troubles are already here….

  13. Horsenut

    Great interview Greg. What I find as interesting is the comments from your followers. There are a lot of good questions in there and good info too, like the interest rates Gerald mentioned. Great site, I’ll stay tuned for coming interviews.

    • Greg Hunter

      Horsenut,
      I think some of the smartest folks on the web comment here. They blow me away everyday!! Thank you for your comment.

      • J.C. davis

        Yes Greg. I would love for you to interview Jerry , Al, Ugly Art Barns, and Mohammad all at the same table. WOW , To be a fly on the wall at that meeting. Set them down with kA Fits.. or K Hudas. I like your guest, but love your commenters.

        • J.C. davis

          Don’t include me . I would not dare to include my intellect against such. Some of my all time favorite postings was from Troy.

  14. 8Ball

    Thanks for the interview. JW is a level-headed guy with a good perspective on the US economy. I would tend to believe him ahead of some of these characters who like to hear themselves talk and sell you a newsletter subscription…

  15. Jeff

    Greg, I’ve been watching this inevitable collapse coming for yrs. As much as we all love our country it seems much more prudent to leave than prepare for what will be worse than our imaginations. I believe we will all wish we had.

    • Greg Hunter

      Amen Jeff

    • Ugly

      Jeff.
      I am not sure about that. In reality, where do we run to when the dollar collapses and the whole world feels the anguish? Even the ‘safe’ havens in south American may not be so safe when the world blames America for the demise. I think Americans in other lands may be targets and sitting ducks. If I bought 20 acres in Bolivia using USD, how do I know they won’t just take it back and ‘due me in’ when SHTF. My opinion, there won’t be any love for any Americans anywhere on earth when that Day comes.

    • wddenis

      Jeff,

      I agree with you 100 %. I have a semi-back up plan to leave. I believe this collapse will be un-godly.
      I live in a medium size southern city; and I can’t imagine the carnage. I have been advised to buy a farm, land, guns etc. One of my brothers lived in New Orleans during Katrina; I had to get him at the Baton Rouge airport. He is a medic/nurse and he told me horrible stories. Now imagine that 85 % of the city does not evacuate. And there is no one to come because that is the way it is everywhere! Like turning on a blender…

      I am lucky I have no wife and kids; because I think we will see utter horrors!
      Your comment is one of the best I have seen to date!!

      • art barnes

        Were already hated almost everywhere, Americans use to sail around the globe and was always welcome, not exactly true any longer. If you are living abroad and the XXit hits the fan you will be considered an outsider and subject to most anything, including retribution. In my mind its too late to leave and establish roots of a new culture, frankly, I’m sticking around and will take notes for history and to make sure the names of the treasonous Americans who made this happen and or let it happen are accounted for. Their gold will only take them so far behind their walled palaces, they will be comeupnencee

        • J.C. davis

          Deserves repeating: I’m sticking around and will take notes for history

      • Horsenut

        I agree with Ugly, your best bet would be to buy land here in the states in an unpopulated area. 30 -40 miles out of a major city would be safer. Whether they lock down the cities or people just run out of supplies, they are going to far enough away to (for the most part) leave you alone. There will be a few that venture out of the cities, but few will walk that far. The govenments only hope is to play the good guys and at least try to provide food for the masses. It will take a little time before masses realize they’re trapped.

  16. southern patriot

    Thanks Greg for all you do to bring us information we can use. Your guest was very interesting. Question,if not gold or silver what is the average Joe suppose to do or have in his possession if the crash of the dollar happens. And for those who have gold, is the government just going to demand that you give it back. They did it before during the 1929 crash.Common sense is telling me to be prepared for survival. Being self sufficient any way I can be. What say you. Southern Patriot

    • Greg Hunter

      Southern Patriot,
      I do not think the government will confiscate gold and silver coins. Especially gold and silver Eagles here in the U.S. Same goes for junk silver. That said, there are capital gins taxes that should be paid, especially if you cash in a large amount. The poor person should stock up on food and water, really everyone should. A currency crash can and probably will cause supply disruptions. Also, regular minted U.S. coins might add some protection. Dollar coins and half dollar coins are not Federal Reserve Notes. They may be treated differently in a revaluation but I am not sure. It would be a cheap try and you would still have the coins. This has never happened before in human history, so yes you should be ready for anything. The unprepared will have a much rougher time, but it will be bad for everyone.
      Greg
      Greg

    • Galaxy 500

      Most of the gold was in banks, not the public’s hands. Gold was money and to facilitate easy handling, the gov’t issued paper notes. Today, things are a lot different. The gov’t all ready has most of the gold.

  17. Alex D.

    Hello Greg,

    I’ve been watching your interviews for a while and have enjoyed many of them. John Williams in particular is very brilliant. Economists are also statisticians, as are many other researchers and scientist. When you come to understand probability theory, you discover the ability to predict. The fact that John Williams is 90% confident that something serious will happen this year, quite frankly, scares me.

    I think it would be interesting if you could interview someone who has a lot of knowledge of the great depression. Either someone who has lived (unlikely) through it or has studied it extensively. It would be great to know what preps we should be making aside from gold/silver.

    I’ve made a lot of little financial moves to prepare, such as getting a more fuel efficient car. But there are always things we don’t think about. I realize this might stray away from the general theme, but I think a special episode like this would appreciated by your viewers. Food for thought!

    • Greg Hunter

      Good idea Alex. I have been doing the same thing. Putting tires on my cars and making sure they are in top shape. I also talked to one of my friend and told them to replace their old leaky storm doors. A good storm door is a fairly cheap energy saver compared to replacing the inner doors.

      • Alex D.

        Great point Greg. Even basic things like tires are a good preperation.

    • Rebecca

      Hi, Alex.
      I appreciate your request for Greg to interview someone with expertise on the Great Depression, either by study and living through it. I would find that interesting, too.
      However, I wonder if that experience will avail us much for this Great Depression.
      Back in the 30’s, there were a lot more farm folks than there are today. Those who lived in the country and had gardens and a cow, survived through those years better — not well — but better than those who lived in the city.

      I live in a small country town. My husband’s family lived on a dairy farm during those Great Depression years. They were tough. They did without a lot. Every leftover of anything was saved and recycled. But they had food on the table because of a huge garden and picking the fresh fruit growing wild on the land.

      My mother lived through the Great Depression in a huge metropolitan. She recalls, even though she was only a small child, that one day a farmer passed through their neighbor selling potatoes. Grandma bought two bushels, not realizing how quickly things were going to go bad. Mom said the time came that those two bushels of potatoes were all they had to eat. Then her dad found work digging outhouse holes and earned 25 cents a day. He also worked at the food shelf. He refused to accept food for nothing, so he worked at the food shelf helping to distribute food to others to pay for the food he took home to his own family. Later when Grandpa saw the ominous signs of WWII on the horizon, he went out and had all new tires put on his old car, put a spare set up and put up a spare battery. Grandma went out to buy linens and towels and other essentials she felt they would need. When the war broke out, none of those items were available. Neighbor helped neighbor.

      Today is a different day and a different world.
      I still live in the country and would never leave it.
      The oldsters, like myself, around here seen the ominous signs of what’s coming.
      There is no money for gold and silver.
      My focus is changing my way of living … to a self-sustaining mode.
      I am not looking for the government’s help when the crash comes and I wouldn’t accept it if they did offer. The price tag for whatever they “give” you will be too high.

      Sit down and just ponder.
      If the electric grid went down tomorrow. how would you survive?
      Prepare like you are going to lose all the conveniences you are used to depending on.
      Some believe society will not look the same after the “reset” and the more you can do for yourself, the better off you will be.

      But that said.
      I hope you have a personal relationship with the LORD.
      I believe we won’t get through what’s coming without HIM by our sides.

      • Rich

        @Rebecca
        Wow. You summed it up perfectly. This is why this blog is my fav. People like yourself, and so many others, with so much wisdom. Blessings to you. Rich.

      • lastmanstanding

        Awesome post Rebecca…many of us here came from parents/families that survived the Great Depression. Quit/failure is not an option.

        We have it in us to survive against the odds. Having faith in God is a win/win.

        But just in case, “don’t go down without one helluva fight”

      • Anne Elliott

        AWESOME post, Rebecca! Another I would add from my family’s experience in the Great Depression – don’t co-sign a loan for a family member. My Great-Uncle asked his brother, my Grandpa, to co-sign a loan on his farm. His crops failed and my Grandpa then almost lost our family’s farm as a result. Cash was king back then – if you didn’t have the cash to buy something, then you didn’t buy it. And yes, both my mother’s family and my Father’s family had relatives living with them for YEARS because of their lack of income. So don’t be surprised to see family needing to move in with you all. It happened before, and it will happen again.

      • Alex D.

        Excellent post Rebecca.

        I have been trying to learn how to garden food but unfortunately I do not have the time to really follow through with it. However, I think it would be smart to buy some seeds and stock up on some of the things you mention. My wife and I have been making it a habit to buy things in bulk, as I think it will buy us the most time once things become very difficult to find.

        I am hoping that things do not become as bad as many of us currently believe they will be. But that won’t stop me from trying to become as self-sufficient as possible. Thanks again for your response.

        • Rebecca

          Thank you to all for your encouragement.

          I am with Alex. I hope this does not get as bad as it “feels” likes it’s going to. We all have family that is not listening, will not listen and is not preparing. Some we may be able to help, but not all. Who wants to see anyone suffer.

          Pray the good LORD holds back the tide as long as possible, for the sake of all who are struggling to listen and prepare and not there yet. That would include me.

          Thank you to all for your encouragement.

  18. John Doe

    Greg, you made me do it. In this interview, you are again showing us what the mainstream media just doesn’t seem to understand: the best interviews are a combination of meaningful questions and giving your quest ample time to answer them! Now I can no longer restrain myself from hitting this donations button… it is all your fault ;)

    • Greg Hunter

      Thank you John Doe. We have been going through a major upgrade to the front and backside of the site and I will put it to good use. Thank you again, you are very kind.
      Greg

  19. Jerry

    What a gracious man John Williams is. Greg I don’t think you could have asked any better questions to him than you did. You covered all the bases including the outstanding interview you did with Rob Kirby. I think Rob Kirby was 100% correct. We no longer have control of our economic system. The IMF and the globalist do. Do you remember this report?
    http://youtu.be/MWXlyTtrVD8
    We got to this point because no one wanted to address the deficit spending that has gone on the last 20 years. The democrats , the republicans , and yes even the independents all had a hand in it. Congress and Obama have seen this train wreck coming for quite some time, and what have they done? Oh that’s right, focus on a Obama care and continue to spend, spend, spend. Cloward and Piven would be proud.

    Greg its -6 degrees here this morning. Do you know what I spent my Christmas money on this year? A wood stove. I don’t have much faith that I will be able to afford the power to heat my house, by this time next year. Maybe this administration should be offering subsidies for wood stoves and gas lights instead of Obama Care, so people won’t be sitting in the cold dark when the power goes off. ;)

    • Greg Hunter

      I love wood stoves. They give a feeling of independence!!!
      Greg

      • jc Davis

        Jerry, and Greg . Me too. I love wood burning stoves. It is( 2 )degrees outside yet in my garage the stove keeps it above 70* with ease. So warm iv been staying in the garage.

    • allen ols

      Jerry

      Get 3 husqavarna 455 chainsaws, 10 extra chains, w/harbour frght chain sharpener, and plenty of 2 cyl mix. remember u can buy by the qt. at auto parts store, cheaper, u can us reg old oil for bar oil in a pinch.
      A chain sharpener extends your chains 3x just barely touch the cutting edge.
      locate tree cutting servics to bring u logs, and large tree branches. stock up on wood, get a large tarp, paint it with elastomeric paint for long term wear and tear, get a Sawyer water filter, and u can us calcium-hypoclorite, 78% to make a 2 step water pure, system. use charcoal from your fire pit wrapped in cotton, with sand to drip river water through first, strain out all rough stuff.
      buy #10 cans of peaches @ sams, for 5 bucks, prepare raisedbed gardening somewhare, buy extra oil, brake fluid, get 5 barrels of reg. gas, seal lids tight, it is safe, buy a generator, if not get a couple of 3k inverters,

      for more on prepping go to survivalblog .com, or preppers web site for list.
      remember, u can use tin foil, to wrap a potato, w/carrots, corn, bacon, and more and just throw in woodburner, for quick meal.

      fopusawd. al ols ammo-up

      • J.C. davis

        We are on the same page Jerry. Got it or getting it. love your postings keep them coming.

        • J.C. davis

          By the way it is 2 degrees in Nashville ( not where I am) It is around 85 ( Where? in my area of living). chickens, chickens, chickens. and fish ponds. Potato gardens, Polk plant with turnip greens.. beans go a long way. Get ready for the worst, so you can celebrate the best. Only GOD do I fear.

      • lastmanstanding

        Good ideas Al…I have a Huskie 55 that I have had since 1997…I spend a minimum of 3 days a week in the woods from Nov-March…I have cut 10’s of thousands of trees with it and 100’s of cords of wood…with proper maintenance, filters, plugs, files and a chains, etc. one could get buy with a single saw. One can buy a lot of preps with the $800 cost of 2 more saws. I have a H460 as a back up but the 55 “smokes it like a pack of cools” and is a pleasure to run 5-6 hrs per day. A good saw for someone to learn with.

        Try Dutch oven cooking on the top of your woodstove. I just mentioned to my wife that we should make dinner that way this weekend.

  20. Randy

    Greg,

    Great interview.

    This link describes some interesting points regarding the machinations of gold.

    http://www.youtube.com/watch?v=C4X65TYo51U&feature=em-uploademail

  21. Mitch Bupp

    Thanks Greg and John. While I am being called an “alarmist” by friends and I laugh at them. I don’t know what they think but the evidence is plain to those who look. I have a question Greg. When you are doing your interviews could you ask (William Black would be the one to ask) a guest if there could be a case made by the US government and others to REFUSE payment of the fraudulent LIBOR rate because many of the same banks committed fraud in setting the rate? This sounds more like a continuing criminal enterprise than banking….

    • Greg Hunter

      Mitch Bupp,
      At some point everyone will know what we know. You know in time to prepare and that will help you a great deal. Be kind to your friends and family when they come asking for help because they will need it.
      Greg

    • allen ols

      mitch

      Jesus said in last days, “your enemies will be those of your own household”

      sad, but welcome to my club-of-rejection

      al ols fopusawd

  22. Mike M

    Greg,

    Material inflation, even short of hyperinflation, will bring a prospective windfall to debtors. The largest being the USG. That said, I question whether the financial powers will allow such a windfall to be shared with the average American via relief of their mortgage obligations. I suspect the debt will be reset upwards. Yes that violates contract law, but there is no respect for rule of law by the oligarchs.

    Thoughts?

    • Greg Hunter

      Mike M,
      I firmly believe any currency reset will come with a debt reset. I think the debt will be reset in the new currency. The bankers will not let people escape unscathed. The best position to be in is debt free with only a real estate tax to pay. Even real estate taxes will cause some to lose their property for lack of funds to pay the taxes. What is coming is going to be very bad, unprecedented in human history.
      Greg

      • beligerant

        Bingo! You nailed it Greg. Debt like mortgages are just numbers entered into a computer and can easily be reset. It wouldn’t be any more difficult than changing the value of your mortgage from USD to Euro’s. I believe the real play here, as John Williams indicated, is precious metals.
        Remember back in 2008 they sold mortgages between insolvent banks for pennies on the dollar. The public was not allowed to participate as it was an ‘inside deal.’ A lot of $250,000 mortgages were sold for $25,000 or $50,000 yet the owners of the mortgages weren’t even notified until afterwards. Why would you expect anything different this time?
        BTW: Fantastic Interview!!

        • Greg Hunter

          Thank you for the Bingo, and support Beligerant.

  23. Trace

    I watch all of Greg’s videos because honesty and truth along w/ compassion is always at the fore-front of his reporting. What I wanted to comment on…his respect towards those that follow him. I’ve never seen a person respond to the many comments as Greg does. It makes people feel important instead of feeling like just another silent watcher. That’s my observation and I wanted to point that out to people that may not know him. I fell in love w/ the caring he shows along w/ the honesty in trying to give us the “Real News” that we are not getting in the MSM. Respect goes along way. Why do you think Washington and the MSM are failing? They only respect a certain amount of the population and it isn’t us crumb sucking resource oxygen thieves. Stay blessed Greg Hunter!!!!!

    • Greg Hunter

      Thank you Trace for your kind words. I think you have also commented on the You Tube channel. Thank you for supporting both sites. I am happy you do not feel like “another silent watcher”!!
      Greg

  24. Robert Burke

    There is one fly in Williams theory.

    For all their imperfections, U.S. capital markets have powerful advantages over foreign rivals. To be sure, U.S. private institutions had hidden their weaknesses by holding them off their balance sheets, but the Greek government proved that European sovereigns were capable of an even greater lack of transparency. Moreover, the crisis reminded investors that there still is not a unified eurozone sovereign debt market that global investors can comfortably move in and out of. The U.S. Treasury market, in contrast, is large, homogenous, and liquid—features attractive to investors needing to place a large amount of funds.

    There is no other market that compares….Williams hyper-inflation is a theory but in practice will not happen.

    • Galaxy 500

      You understand that the federal reserve is buying most of the tbills right? Alot of fforeigners and Americans have lost faith in these markets. Just check on the quantities of bills that China and Japan are buying…or not buying.

    • beligerant

      Robert, good post. I agree as there will be no hyperinflation but instead there will either be some type of Bank Holiday and/or currency reset. It’s a lot faster and more orderly. If you don’t believe they would have a Bank Holiday then perhaps you should watch this short campaign video starring none other than everyone’s favorite officials. If this doesn’t make you sit back in your chair and take a deep breath then nothing will: https://www.youtube.com/watch?v=d-cLZai63GA

  25. Chip

    Great interview Greg. JW knows his stuff and for him to be thinking the dollar’s demise is so close is alarming for sure. Thanks for what you do and this site… Chip

    • Greg Hunter

      Chip,
      It’s coming this year or next year by the latest, but it is coming. Thank you for your comment.

  26. AndyB

    Greg: those of us who are not cognitively deficient have hoped for the “reset” that is coming. If this were another era, we would survive in decent shape. But in these times, I must proffer the statement/ admonition of “be careful what you wish for”. We have to be wary of our biggest enemy, the psycho elite with the reins of power. There will be, I have no doubt, martial law preceded, or purposely triggered by just another false flag attack of some kind, in which the “final solution” will be imposed upon the American people. That phrase, “final solution” should resonate with those of a certain age that can connect the dots, principally with the abrogation of the Bill of Rights over the last decade, and the rise of police state America.

    • Greg Hunter

      AndyB
      The best place to be is off the street when the s#$@ hits the fan. All those rounds of ammunition are not for people holed up in their homes.
      Greg

    • allen ols

      andy

      locate fast escape out of city, look at syrians fleeing to other countries now, millions, just like the israelites under hitler.

      al ols fopusawd

  27. Larry Carter

    Well, Greg based on the nimber of very appreciative comments from your listeners we all appreciate a clear and concise evalutaion by John Williams. When you opperated from a position of clearity with facts to support your position it is much easier to fell confident that your prediction has an extremely high level of probability. Great interview with a great man. May gold grow to the sky in value like Jack in the Bean Stalk

  28. Larry W. Bryant

    == A Mission Statement in the Form of a Tanka ==

    in pursuing truth,
    USAwatchdog.com serves all —
    broadcasting its voice
    globally for us to act
    locally in survival

    — Larry W. Bryant (6 Jan 14)

    • Greg Hunter

      Thank you Larry!
      Greg

      • WD Deni

        Greg,

        I spoke with an elderly but wise and physicaaly fit man this weekend and a sporting goods store; he was buying ammo and I was looking for a rifle. He was a farmer and avid hunter. He was not formally educated but brutally smart.
        We had the discussion of collapse and he said “of course its going to happen, but I can hunt, fish and farm. I live 30 miles away from the city.

        I brought up the subject of govt troops taking over and he laughed. He said “Take over what!” There are more registered hunters in this state than they have combat troops in the army What are they going to take over? Dou think they can waltz into north Mississippi or western Ohio and start something? They will be shot on sight… He said son ,when this collapse happens no ones coming no one. Most cities have thousands of street gang members that are armed. What do you think will happen to any troops that, if they can can even get there. They will be decimated. It will be pure survival. Dont ever think that someone is coming for you either to rescue or kill you. They will be too scared.”

        Do you really believe that some armored vehicle they used in I raq is going to have an effect?

        Greg, justwondering what you think…… Thanks

        • Greg Hunter

          WD,
          I’d listen to that farmer. He’s right. What we are facing has never happened in human history. Anything can happen and I mean anything. Please prepare as well as you can to the fullest extent of you ability. It will help you and your family.
          Greg

        • lastmanstanding

          WD. There are millions of us like that man out here.
          We have been forced to play by their vile , unholy rules for too long. Now we just want to be left alone.

          The line in the sand has been drawn. nomi. molon labe.

        • allen ols

          WDeni

          I dissagree, our bullets, are no match for troops, think, “force-multiplier” and all that means.. their will be resistance, but it takes organization, leaders, and there are few, and one must be willing to be killed for others. Our society is soft.
          I had 2 ladies in my house 2 nights ago, and shared with them for 1.4 hrs, everything i could, and fast.
          Her question to me was, ” If your friends come to you for your food in crisis, what will you do” I said first, find me; :) second all my friends and casual run-ins know and have been warned. If they didnt prep, tooo bad, i have been beaten up too badly to have a heart at this point. Next I asked her, “are u now going to do something and prep, or just go on your merry way? I said if you come to me after shtf, should i help YOU, after spending time warning u?
          I wrote down sites for her and husband to look up and research, it is up to her, she is a christian, but who knows what they will do. she is irish as am I, but married to american. the other lady said “I hate Guns” as i showed my remington super mag, with 9 ball 00buck.
          These are biblical times, we are talking about antichrist, etc, gog magog, persia, all arab countries siding with persia, to attack israel.
          One more 7 earthquake by Japan fukishima, will take down japan and our west coast.

          oh well, One grunt, with a s.a.w. and a tank, 3 humvees, with 30cal 6barrel gun, can take out 5 thousand country folks, with guns and limited ammo, and food, but not without a fight, think “sniper’ @ 2 miles. remember we were defeated in vietman, afganistan, iraq, and these fighters were well armed, our locals are armed limited.

          alols fopusawd

          • Galaxy 500

            They have get out of the armour some time. I am only GOOD for about thousand.yards. I’ll leave the.long distance stuff to you

          • Galaxy 500

            And Al, a bunch of Arabs with a twenty dollar IED is a real.inconvenience to armour. I think red necks will do ok

        • Jerry

          WD
          At this point think Titanic. Who would I save? Greg has given you the time to make a lifeboat in the form of preparation, by giving you advance notice. Forget about the Naysayers. None of them will be around when it really matters. Save yourself and your family. As I have always said, I’d rather be wrong and have to eat crow, than to be right, and starve to death because I did nothing.

  29. Tony

    Hi Greg,
    As America continues its energy wars overseas we have to expect blow back from these enraged nations. They can’t fight America directly so they’ll do it asymmetrically. Our State Department will call it terrorism but it’s actually vengeance. I don’t think it’s unreasonable to expect a mini nuke detonation or a release of viral pathogens in major US cities. That would sink the dollar fast. When I served in the military as a young man I never thought my own country would turn into a greedy corporate police state preying upon the young and weak at home (Obamacare) and abroad(endless neocon wars). What has happened to America?

  30. peter

    With due respect to Mr. Williams, he has been singing the same song for several years. There’s no inflation in sight because of the overcapacity in Mfg’g world wide. The Fed is afraid of deflation, not inflation, as is Japan. I don’t see any currency that can take the place of the US dollar because of the deep financial markets in the US. He’s been wrong for so long that it is hard to take him seriously. Further, Martin Armstrong (I believe, also a guest on your show) rejects hyperinflation in a major economy like the US.
    As for gold, it’s clearly in a bear market (other commodities are also in a bear market). Mr. Williams’ remark that it doesn’t matter what you pay for gold is odd. Of course it matters.
    I understand you have to be polite to guests, but you could have questioned him on these points. The gold bugs have been saying what a great buying opportunity it has been during this extended bear market in gold. They are wrong and have hurt lots of people who have taken their advice.

    • Galaxy 500

      Peter,
      If you listened to the so called gold bugs and bought gold 15 years ago you would be well ahead of the same money invested in stocks

      • smaulgld

        We shouldn’t speak of the Fed as having one monolith view point. Though in the minority there are Fed board members very concerned about inflation. Unfortunately the doves are in the majority and they are concerned there isn’t enough inflation

  31. Digby G

    Greg
    This guy speaks a lot of sense.
    But he needs to speak sharper and clearer.
    I look at the real economy – production, imports and exports, and I see lots of imbalances that will come to a head.
    This “recovery” is not the same as previous ones, as western economies no longer employ lots of people in productive industries. Its all moved to Asia.

    • Robert Burke

      Agree with you Peter….but sometimes people hold on to a position so long, even when the markets move the other way they still hold on to outdated views. Give Greg credit he allows us to post these different views…
      When your on investment views are so clouded that you lose 20 to 60% of your investment its time to question ones thesis.

      • Greg Hunter

        Robert Burke,
        I think you are missing the point here. This not is not a trade or an investment strategy. This is going to come down to financial survival. When this unwinds, people will not merrily go back to what they were doing and move on. Life will change forever and paper investments will be trashed. Counting investments, at this point, in dollars is not even relevant in a currency reset. Buying physical assets may be the only assets you end up with provided you even have them in the first place. Thank you for your participation in this site even though we disagree.
        Greg

  32. Roy

    Greg, Williams theory is great long-term. What about short-term? Question, how are you going to get hyperinflation when tapering or stopping QE is protective of the US dollar? Just to entertain other possibilities of what is coming, Mike Maloney theorized after 2008 the Fed would create a temporary period of deflation, followed by hyperinflation.

    Right now inflation is not huge. Remember Gerald Celente, he says this has been an interest rate recovery. Take away low interest rates….. How about the bankers, you know they are executing their own plan. Re Thomas Jefferson’s quote:

    “If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. ”

    Inflation…deflation. Inflation…deflation. Conglomeration of power.

    Greg answer this, they cannot get much inflation right now especially if they go down the taper route. So Greg what if the next step is deflation? Greg, can you answer this question, whether guys like Mannarino are right long-term but in the short-term they are wrong? How do you suppose they will be able to fight wars and operate the world’s largest military by far with a deflated currency? Greg, is it not about maintaining global hegemony with the dollar. Remember in 1971 Nixon said they were “defending the dollar against the speculators” when they technically defaulted by removing the currency from gold. Greg, how will they defend the dollar now. The only way is to stop QE

    You may ask then how will they afford the debt payments when Treasuries go past 3.5%, or maybe 4%? Bankers do not care about the economy Greg, they will be happy to collapse a few banks and take out another section of the economy on the way to the NWO. Maybe they pay for the extra national debt by O’Care , which is to some extent just an extra tax.

  33. Coalburner9

    Great interview Greg;
    Wild Card: The IMF approved bank raids on Euro bank accounts actually starts, Stealing peoples money. Massive Money flows out of Europe and where too? Only one place for that amount of money to go is into the dollar for a two year plus or minus reprieve for the dollar. The Jim Sinclair Leveling and Reset will take time. It has to stretch out to strangle us all slowly like boiling the frog. I want to believe Mr. Williams and I do respect his work but I just don’t buy inflation, YET!!! Gold is going to turn but for different reasons. If this Wild Card doesn’t happen then look out for bail-ins in the USA. There are several possible scenarios and and I don’t think anyone can be certain because there are factors and events that we cannot forsee that could turn the world on a dime.

  34. Tim B.

    And in SHARP contrast is Bernake’s view of the U.S. economic future and his personal contributions to the country…

    http://www.bloomberg.com/news/2014-01-03/bernanke-sees-headwinds-fading-as-u-s-poised-to-grow.html

    …most of the Bloomberg commenters don’t seem to be buying it either.

  35. Angela McCleary

    Greg, love your interview skills, you are a really good guy. Can you tell me what will happen to the home values and mortgages when the crisis hits this year as per JW interview? Will it mean home values will decrease by the value of the drop in the US dollar? and will it also mean the banks will call up the outstanding mortgages on homes to bring them inline with the LVR%, (this is what has happened in the farming community here in NZ in the past-unfortunately,many farm owners committed suicide ). This would mean people will lose their houses in the short-term as the banks will expect the home owner to “coughup” the debt difference on their homes. I would really appreciate your knowledge of this, Many thanks Angela. PS. I am selling my rental property and buying gold and your JW interview has really convinced me I am doing the right thing. Thank you thank you thank you.

    • Anne Elliott

      If the bank holds your mortgage when the $@!& hits the fan, then it depends on whether they need the money back at that time, or can keep the agreement as is, or if they have sold your mortgage to someone else… then it would depend on that other firm’s needs at that time. Most banks sell their mortgages to other firms right after getting the ink dry.
      Personally, I think that is what they have created the FEMA camps for; all the homeless people who will lose their homes in the upcoming crisis. I need to pause now to go puke.

    • Liquid Motion

      Yes the Banks are Evil. They create booms and busts (because of Keynesian madness).
      The ones who suffer are those that take out mortgages when times are good thinking that situation will last forever. History shows it doesn’t and there is a price to pay.

      Banks have no recourse unless you default or LVR requires re-capitalising.
      Understatement = Income/Cash flow/ Job is critically important for those that have debt (mortgages).
      I find it extremely interesting to see those that have access to cheap money, scouring the world for real estate assets. Its happening in NYC, London, HK, Sydney and its a tell-tale sign that those that have too much paper assets and now want physical assets …at any price (be damned with the Bubble consequences). Be very careful. Don’t give the banks any ammunition for foreclosure. It literally is a game of Monopoly. You will be made redundant and bankrupt if you expose yourself to too much debt/ have no income to pay the costs of owning / renting a house/land. With the Banks being so undercapitalised (some even insolvent) you can be sure that they will be looking for capital (at any cost)…meaning everyone’s mortgages are in the firing line.
      A crisis in the USD is bad for those that utilise it / trade in it/ remunerated in it. As for real estate effects of a crisis ….it depends where the real estate is and what zone of the world influences your economy. Additional to that, a USD crisis will dramatically affect interest rates. Need I say anymore on the effects on real estate.

  36. Felicia

    Thank you Greg for having John Williams on. I know some folks believe that things are not that bad and I wish they were correct. But..I know people in the investment world who know the bottom willbe falling out soon. So, this will mean we will need to be wise & loving in our relationships. A strong faith that our God will guide us will give the hope so many will need. Many (family& friends) don’t want to hear what is coming. But…when TSHTF is when they will need hope & help. So thank you for the help you give now.

  37. Jerry

    Greg
    I was looking at the dollar index today on this chart.

    http://www.marketwatch.com/investing/index/dxy/charts

    Do you see a market trend here ? I certainly do, and its not up. Take it for what its worth people. Simple mathematics don’t lie. Having the Feds gamble with our money is like playing Blackjack. You may win a few hands and stay in the game a little longer, but eventually the house wins. And when they do, they’re coming for your chips.

    • lastmanstanding

      Thanks Jerry, especially if you look at the 5 year. What has changed since then for most Americans?

  38. Dan

    Greg

    I am in agreement with “Peter”, in as much as YOU were UNDER prepared to interview this guest. It is a shame. I enjoy your interviews, but NOT if they are “infomercials”, or advertisements for your “guests” products or services. If we want PUMP & DUMP, we can always go to http://www.kingworldnews.com

    As to Mr. William’s prediction of “US dollar hyper inflation”, you could and should have asked him to explain at minimum, the following >

    1) VELOCITY of MONEY > how can there by hyper inflation in the reserve currency withOUT extreme velocity of money ? And if the reply is, you will have it, then the response is to ask from where is the major source of this going to come from ? And if the answer is from outside of the USA (ex: because the USA consumer is still tapped out and cannot borrow more), then you should ask to specify exactly how and where Mr. Williams sees this incredible ratcheting up of the Velocity of the US currency. Because whether you know this or not, our government would no doubt explain all of this as a mad and crazed “Attack” on our country by “terrorist” nations seeking our collective downfall….an “act of war”, in other words. And God knows what comes after THAT.

    In addition, I also agree that China (our largest external creditor) has some sort of “deal” with our bankster masters (who own our government) which is a quid pro quo….they get to vacuum gold up at artificially low prices set by the Crimex, JP Morgan (et al) of course partner with them to make billions more while helping to fleece the countless panicking suckers who cough up everything they own (or are leveraged to own).

    Finally, I don’t have all the answers or questions….but by God, this is the BIGGEST story of the last 100 + years. If we only knew the extent to which the criminals in control of our government have, and continue to loot our country in every imaginable way, well maybe, just maybe, we all might collectively gather the balls to stand up and do something about it. Probably not.

  39. Liquid Motion

    Greg,
    JW presents a very strong and well supported argument in favour of Hyper Inflation.
    I have said it before with his other interviews, that I do not believe that it will occur but I do respect his work and opinion.
    This is not an off the cuff comment, lets consider some important facts:
    – The World Capital Markets are enormous.
    – Liquidity in those markets is essential for existence
    – The USD’s participation in those markets is unquestionable (albeit declining).
    – A failure of the USD (crisis) triggers catastrophic consequences across the globe (THIS IS NOT A USA CENTRIC ISSUE).
    – All market participants know that.
    – No sovereign nation would want to trigger a crisis in the USD without suffering the consequences.

    There is no doubt that the silent killer….INFLATION…is present everywhere (prices of consumables as well as Assets). To get more grease into the system to enable an even higher level of Inflation would necessitate one of two things materialising:
    1) Credit growth – this has been trending negatively for some time now and does not look like abating. This is part of the M2-M3 money supply equation. JW touches on this in his remarks where the QE has been quarantined in the Banks reserves held with the FED. To get that out into the system would in itself increase the money in circulation and therefore resulting in true monetary inflation. Unlikely to occur in the near future.
    2) A correction in Stocks / Bonds which would see a flight of capital to safe haven…..OR Hard Commodities (including PM’s). This would drive up prices across the board and we would see dramatic inflation leading to the next “official” recession. I tend to favour this event as being more highly probable.

    The greatest fear I have is for the following to occur :
    – To avoid a “possible” crisis in the USD the US FED/Govt/ Treasury will do the unthinkable ….Devalue the Dollar. This will create instantaneous inflation that they so desire.
    – This will be combined with an outright default on debt. There would in my estimation be an equilibrium default setting process where all debtor/creditor nations agree on the mechanism for default. A sovereign debt default could also trigger capital controls and further financial suppression.
    The time frames for these events to occur …….within the next 5 years.
    You can witness the ME states together with African Nations pulling together to form singular currencies. Also witness the trade swap arrangements with the RMB across the globe and settlement in Gold/Yuan. Consider Russia/China/India/Brazil appetite for GOLD.
    When people say once the gold is gone (to the East) its never coming back. Don’t be so sure about that. What entices people/government/cb’s to sell ????? PRICE does. If the price were sufficiently high enough…would you not expect that some would be willing to give up what they have stored ? It works in direct contrast to a drop in price…which triggers selling. The secret is understanding the difference between price and value.

    In any event we have debt destruction which is deflationary by nature then manifesting into inflation on the horizon. The cleansing process will take another decade. Keep in mind the excesses in the system were built up over 40 years. It will take at least half that time to rectify and purge.

    A theory about Germany’s Gold repatriation.
    7 years to obtain 700 tonnes….
    Implies …no available gold for delivery & the FED has a stranglehold hold over Germany’s stability and the stability of the EURO. Without the Fed’s swap lines the ECB would be printing ad infinitum. The FED is the BANKER of last resort for all BANKS and Sovereign nations( not just US Banks as some are so misinformed about). The Global Monetary system is theirs. They own it and therefore are responsible for ensuring its continuity or otherwise. Germany’s hands are tied until a new monetary order is established.

    • Greg Hunter

      Liquid Motion,
      If a comment is long, it should be this good!! Nice analysis LM!! Are you a Wall Street insider or banker past or present?
      Greg

    • Jerry

      LM
      I respect your post, and agree with most of your points. However I think you are more optimistic about human behavior than I am. I see all of the world economies like the Titanic sinking. Once the rich get into their lifeboats of economic sanctions, protecting their assets, they are more than willing to let the rest of us go down with the ship. As far as stealing wealth. Death has a way of covering up crimes.

      • J.C. davis

        Jerry: I am blown away ! Too much truth in one statement. Once the rich get into their lifeboats of economic sanctions, protecting their assets, they are more than willing to let the rest of us go down with the ship.

    • Liquid Motion

      Greg,
      Thanks and oh, I prefer anonymity. ;-P
      Jerry,
      Wouldn’t call my view optimistic. A balanced view bordering on Realistic.
      Whilst the Elite may attempt to blow the house up in their efforts to prosper in the new world order, there are others who are not so courteous or sympathetic to their desires. I do agree that TPTB are sociopaths, but to let them have free reign to destroy societies and moreover the socio-economic standing is not only foolish but it condemns them as much as the rest of the citizenry to disorder and lawlessness. They know (or at least some do) that they can only push this thing so far before it implodes in on itself. They need to ensure that some semblance of order remains for them to “Enjoy” their Assets.
      We all know they are far from perfect. Their efforts to date are testament to that fact. Plan as they may, they will suffer more.

  40. mushroom

    Greg,

    Thanks so much for having john williams again.

    It’s certainly one of the most important presentations in the last few years…

    • Greg Hunter

      Thank you Mushroom for your comment and support.
      Greg

  41. Francis Peters

    Dear Greg,
    My wife and I look forward to your interviews everyday that you have one. I follow a lot of other sites but yours is our favourite. We agree with a statement above that says you always show compassion. I wish we all could have such neighbours. I like these quotes from The Bible
    Proverbs 22:3 A prudent man foreseethe the evil, and Hideth himself: but the simple pass on, and are punished.
    And also…1Tim 5:8 But if any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel.
    These along with all the varied expert opinions on your site (and others) help us to prepare for violently tumultous times ahead that we have never experienced before and should be preparing for as best that we can. I too try to wake people up all around me everyday but VERY FEW are willing to listen. Those who love me (family and friends) look upon me as “nicely” crazed and full of conspiracy theories and some of the rest openly mock me. Most quietly nod their assent to the problems throughout the world. I never let discussions get to hostile argumentation but defer to another topic after a while if the ideas are not getting through. I just hope that maybe they have had exposure to outside the box thinking and it may come to them before it’s too late. We just keep on preparing. God Bless you Greg! Dare I say…May The Lord Jesus Christ strengthen and guide you through the workings of His Holy Spirit! Amen!
    Francis (Canada)

    • Greg Hunter

      Francis Peters,
      I pray almost everyday for Divine guidance, Divine protection and Divine healing. Thank you for your kind words and Bible verses.
      Greg

    • allen ols

      Francis;

      Allen Ols
      Prophets today are “life coaches”, pastors “inspirational speakers”, evangelists entertainers and our conferences are akin to a side-show at Barnum and Bailey. Worship leaders act like “therapists” and the worship service more like a “spa” than a mount Moria. The endangered species in today’s jungle of doctrine are those who live by the New Testament mantra, “They loved not their lives even unto death.” The pearl of great price in this trash-heap of modern methods and weekend wonders is the matchless words of Christ: “Anyone who does not take his cross and follow me is not worthy of Me and whoever finds his life will lose it, and whoever loses his life for my sake will find it…” – Matthew 10:38-39, Revelations 12:11

  42. steve

    Greg,
    We all know the Chinese are purchasing large amounts of gold. I would really like to see a guest on your site who could expound on the ramifications of these actions. I have my own theories, but I’m sure you and one of your guest could shed much more light on this subject. Once again thanks for all you do.
    Steve

  43. Reader

    2014 will see a HYPER COMPRESSION of PROFITS in the American economy. Not HYPER-INFLATION of PRICES.

  44. Smaulgld

    Greg
    Thanks again for brining us another great interview.
    A question I asked my readers this weeks was “what will you do if the stock market crashes”
    Since 1987 the markets have been spoiled by quick recoveries after each crash engineered by the Fed’s liquidity dumps. We are probably reaching the end of the ability of the Fed to save the markets next time. As John points out they have pushed the problems to the future.
    The future is now.
    Here is the poll http://smaulgld.com/what-happens-after-the-next-stock-market-crash-poll/

    • Liquid Motion

      Did you not witness what occurred (stock market) after the tapering announcement in December ?
      The PPT went into hyper drive after what was initially going to be a watershed moment in stocks.
      Lets keep an eye on the Stock market over the course of this month shall we. FOMC meeting 20th will set the tone for not only stocks, but also GOLD !!!

  45. Rodger

    Greg, I am surprised you did not ask JW his views on how silver will perform.
    Not every one can afford gold, but silver is with in the working mans budget.
    Thanks

  46. bob d

    Being a cook is the best job during a depression. You stay warm and food is your pay.
    Grandma 1930 Montana ranch cook.
    A old woodcook stove in a small cabin ,will keep you safe when all the other ideas ,of living off the grid will use up income.

  47. Smaulgld

    Roger
    I agree. Some of these guys are gold bugs only. Most gold people like gold and silver. Gerald celente seems to be weighted towards gold as does Jim Sinclair.
    Mike Maloney of goldsilver.com is weighted much more towards silver. Eric Sprott seems to favor silver

  48. Smaulgld

    Greg mannarino is very much enthusiastic about gold and silver- esp silver

  49. frosty

    Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. To understand how, we just need to look at the policies implemented by the private banking corporation which controls America’s currency and evaluate the effects of its policies on American society.

    Since the Federal Reserve was given control of America’s currency in 1913, the purchasing power of our dollar has collapsed by 95%. This slow motion policy of inflation has enriched the few who are politically well connected and have immediate access to the newly printed money while impoverishing the rest of society who must wait for the money to trickle down to them before spending it to buy goods and services at higher prices.

    This insidious, slow motion process of wealth confiscation through currency debauchment has served to stratify our society and build resentment between its members, but there’s more.

    Through implementation of the Federal Reserve’s policy of maintaining practically zero interest rates on savings, endless QE’s and a direct looting of the public through the concept of bailouts for the too big to fail’s, the inflationary process is no longer being conducted in secret or in slow motion. Now, our economic system has become so disordered that the process of private gambling with public money has replaced that of sound investment and savings as a method of wealth building.

    Whether a 2014 crisis in the dollar brings hyper inflation and social chaos is interesting speculation, of course, but looking at the bigger picture one must admit that Lenin was certainly right. His insight, as implemented through the private international banking cartel which controls the Federal Reserve and appoints our politicians to serve them, has brought our society to a new low.

    Our citizens, increasingly impoverished and not trusting their government, now protest in the streets while their corporate government builds a police state, arms it the hilt and passes laws which identify the citizens as potential terrorists to be spied on.

    But all is not lost. We recently celebrated an historic event in the appointment of a female to be the new chairman of Federal Reserve and, like Dorothy in Ozz, she will lead us down that yellow brick road.

  50. Anne Elliott

    My husband and I were watching two national MSM news stations last night, and both covered the new cast addition to Saturday Night Live as one of their main stories… Lol and puke. Bread and circuses for the masses. Maybe tonight they’ll have a story on the popularity of the Candy Crush game…!
    Thanks for having Mr. Williams on, Greg. He is like Clark Kent – mild and unassuming until he astounds and amazes us with his financial knowledge. I hope he is wrong about his predictions, but fear he is way too right.
    God bless you and Mr. Williams, and may He keep us all safe in the coming crisis!!

  51. Robert Burke

    Interesting fact, Canada which will have a large budget surplus in 2014 ( is not money printing) is now stating (today) that the biggest threat is DEFLATION not inflation….

    So now you a Central Bank worrying about deflation…another nail in the inflation argument

    BoC’s Poloz crossed the wires with some incendiary comments for the interest of Canadian Dollar dealers, saying he remains most worried about inflation under-performing, which reinforces the neutral to dovish stance by the Central Bank.

    Poloz added that the BoC should hold rates until data flow changes bank’s perception towards price levels, while also making reference to exercise caution on steady rates as they cannot afford the risk of a misjudgment in deflation pressures. Lastly, Ploz said: “It’s a difficult one to explain right now; that always makes you worry,” he said.”

  52. Joe Gee

    Great article Greg, Intimidation and fear are the bread and butter of tyranny and that is exactly what we have here in the USA ! Our only hope is Titus 2:13 “Looking for that blessed hope, and the glorious appearance of the great God and our Savior Jesus Christ.”

  53. Vess

    John Williams is wrong. He is most definitely wrong about the timing – there will be no US dollar crash/hyper-inflation in 2014. In fact, the dollar is more likely to rally within that timeframe. Greg, I would appreciate if you could remember this counter-prediction and publish by the end of 2014 which one of us two was right.

    I am also starting to get my doubts that he is also wrong in principle – meaning that there will be no dollar collapse and hyper-inflation at all – although I am much less convinced in this. On the one hand, the Fed can do everything – suppress gold, save the bond market, stimulate the economy – EXCEPT save the dollar at the same time. On the other hand, more than 80% of the world trade is in US dollars. Everybody who could cause a dollar collapse by starting to dump dollars has more to lose from the resulting collapse than by just holding depreciating dollars. Higher inflation down the road – yes, definitely. Hyper-inflation and a dollar collapse – I don’t think so, but I am less certain about that.

  54. gibb

    Will the reset of debt have any effect on private party debt ? between 2 or more individual

  55. harold coffman

    Why not define ” Money” as the “Anchor”, (Sovern and Forex, large, international)?
    And ” Currency” which can be ‘ anything’ within a country as the medium of exchange.
    (guarenteed to the “Money” Anchor … by goernments, agreements ) ?
    Gold is an Anchor … Bid/Ask ( over-time) will fairly equalize the playing-field.
    Gold can be stable, (legal-priced and smoothly consistent for trade) by the use
    of a two-year Moving Average of Gold (recent-history) plus today’s bid/ask.
    Sum divided by two?
    There is nothing wrong with pastic coins or paper dollars as Currency.
    Get an Anchor.!

  56. Peter Mumford

    So, if the dollar is going to crash, it presumably be when billionaires and institutional investors will sell off Treasuries. What will these big shots buy? You have to have your wealth denominated in something. Gold? I’m not convinced. Euros? Rubles? Yuan? No way.

  57. Bill

    Greg,
    Thanks for some terrific interviews. I always look forward to them
    However, I believe John Williams is very wrong in regards the US$. His scenario can’t happen. Where is the world going to go? The Euro & Yuan are too small and illiquid. In time maybe a new world trading/currency mechanism will be developed but certainly not in 2014.
    Keep up the good work,
    Bill

  58. Warren

    Greg this goes along somewhat with my prediction. I have a window of 17 months from August 2014 to (Beginning with 2014 Q3 to the end of 2015).

    The current regime will do every thing possible to hold out at least until after the midterms, but they may fail which is why I think it could collapse earlier than that. And the longer they hold out the more they can loot the treasury.

    However it is apparent to me that a national emergency at the end of next year will be to the benefit of the regime, perhaps Obama will not try to stay in power, and he may well to try, sort of like Nanny Bloomberg did, but under a major national crises, they can so disrupt the country and its electoral systems that even if the people smarten up enough to kick out the marxists/socialst regime a regime puppet such as Hillary can take the reins of power and along with Pelosi/Reid led congress, and force through and a rubber stamp laws to create a US USSR.

    • Greg Hunter

      Warren,
      If there is an election the Dems will not take control of anything. I predict the Dems will lose more seats in the House and they will lose the Senate as well. You are correct about playing the “national emergency ” card. That is a very scary proposition. Thank your for your comment.
      Greg

  59. william

    I am from the U.K originally, but married a Texan lady so now live in Texas, for the past year my wife and I have been trying indeed succeeding in reducing debt and outgoings, eliminated credit card debt, ceased cable t.v and other such non essential luxuries, we have built a storeroom and have been slowly stocking with essentials, not mad hoarding, but prudent planning, I come from humble stock and am used to being frugal and wasting little, very hard times are around the corner for much of the western world, the main difference that I have noticed here as opposed to other countries is how strangely oblivious many folk appear to be here as to what is happening and is to come, I believe this great nation will come through what is ahead, but I also feel that many are going to suffer because they simply can’t see what’s happening, stock up, reduce debt, grow your own veg, waste little, spend wisely, spread the word, listen to music, drink a glass of wine, and stay calm.

  60. Michael McGehee

    I have to agree with the contrarians here: The dollar isn’t going to “collapse”. As currency traders refer to the US $, as “the tallest midget in the circus” they’re absolutely right. What will break, is social unrest. As Jim Rogers says, hold assets, not currency. The debt is large, and wringing our hands over it, is simply hand abuse. The Fed will buy whatever bonds the world doesn’t. How long can that go on? Longer than anyone reading this is likely to live. We’re importing poverty from India and China. We love their poverty, and so we welcome it (by means of Walmart, Target and nearly every other chain store). Those votes are far more powerful, than any vote cast in a ballot box. Until our legislators decide to change that (which they never will, sadly), we’re all going to get poorer. Doesn’t matter if you’re holding gold or diamonds or what. We’ve raped the American worker to the point of total destruction. How, does anyone, suggest we undo that?

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