By Greg Hunter’s USAWatchdog.com (Saturday Night Post)
Economist John Williams, founder of ShadowStats.com, says the economy is much weaker than it appears. Williams cuts through the phony gimmicked government numbers to give a true economic picture. His analysis shows the economy is already slowing down anew. This is why the Fed just announced it will not be ending the massive money printing and start the so-called “taper” anytime soon. Williams explains, “What they are doing right now is trying to keep economic activity from collapsing. At the same time, all that they are doing in the way of spending and what the Fed is doing with all this money creation is triggering inflation. Inflation in the GDP was at a 40 year high. This is not a good sign because the inflation is difficult to bring under control once it’s out of control. We are getting very close to that. . . . Inflation is around 13% the way I measure it.”
Is the inflation going to be “transitory” as the Fed keeps telling us? Williams says “No,” and goes on to say, “Inflation keeps going up. In Social Security, you might get a 7% bump, but you might be at 20% inflation next year. I think we are still at high risk of this evolving into a hyperinflation. Fed Head Powell just said inflation could be more serious than they are projecting, but if the Fed was convinced of that, they would take action to bring it under control. We will see what happens.”
If the Fed actually had to start fighting inflation, would they crash the economy? Williams says, “Probably. This is why the Fed is doing what it is doing because they don’t want to crash the economy. . . . The economy is not as advertised . . . . The Fed sees two things: One, they still see a very weak economy despite the happy GDP numbers this week. They also want to see full employment . . . and they don’t see that until 2022 or 2023. So, they are going to keep their easy money policies in effect. They are going to keep printing the money . . . . They are putting the money into the system to keep the system liquid . . . it’s not a stable circumstance. We do not have a normal economy yet, and we don’t have normal financial markets. It’s unstable times. . . . I would protect myself and I would be holding silver and gold. . . . The reason I suggest this is if we get into a really bad inflation here, something like a hyperinflation, which I think is a real risk, the precious metals will tend to maintain their purchasing power. Weimar Germany in the early 1920’s effectively devolved into a barter system. Gold and silver will retain their value.”
Williams is still predicting “. . . In early 2022, I am looking for something close to a hyperinflationary circumstance and effectively a collapsed economy.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with John Williams, founder of ShadowStats.com.
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