Hyperinflation is Virtually Assured – John Williams

By Greg Hunter’s USAWatchdog.com 

The Federal Reserve is talking about “unlimited QE,” or money printing, to boost employment.  Economist John Williams says, “That’s absolutely nonsense.  The Fed is just propping up the banks.”  Williams says, “You’re likely going to see a dollar sell-off . . . That should evolve into hyperinflation.”   Williams, “Doesn’t see the current system holding together without hyperinflation beyond 2014.”  He contends the real annual deficit is “$5 trillion per year” and says, “That’s beyond containment.” 
Williams predicts, “Hyperinflation is virtually assured because the Fed doesn’t have any options left.”  Williams says people should get prepared because we are facing a “man-made disaster.”   Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com.

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  1. art barnes

    Greg, wow, wow, wow, what an interview. Mr. Williams has sounded the alarm as to the beginning of the end for the dollar. But one can’t underestimate what a major war would do at just the right time to convert the currency, ration the goods, cancel the debt & place price controls in effect. I propose that war becomes more plausible as the currency declines in value and inflation takes off. Might be interesting to hear what Mr. Williams would say if ask about a major conflict timing with the commencement of hyperinflation. Thank you for the interview it was eyeopening.

    • Greg

      Thank you Art for weighing in.

  2. Rich

    Its funny that people think the fed will create jobs.. When Clinton signed NAFTA and deregulated the banks, that was the end of middle class America. As Ross Perot Said, you’ll hear a giant sucking sound as jobs go overseas. The Govt cant create jobs, it only screws up what ever it touches. The other idea floating around is housing will pull us out of this mess, NOT. Think, incomes are going down, I knew this in 2000, selling real estate. House prices cant go up, unless income goes up. Duh. A 1% interest rate hike in mortgage rates, game over. So, take heart, Japan has lived this scenario for 20+ years, so will we.

    • Blue Dog

      Housing prices are independent of income. It’s supply and demand. Pure and simple.

      • Michael Jonah

        Housing prices are independent of income? Demand is directly correlated to income and employment. 30 year fixed under 4% and prices still dropping…speaks volumes.

        • darknrg

          Thank you Michael. No (bad) jobs, no (low) income, no demand.

        • Jon

          The idea that housing prices were independent of income was the prevailing thought of the housing bubble which was shown to be utterly false after the collapse. When home prices were rising 10% or more per year in many parts of the country yet incomes were rising by 3% there was an eventual break in the trend in 2007. If people can’t afford the mortgage payment due to loss of income or homes becoming unaffordable after a price run-up then those prices must come back down to earth.

          • George

            But now cash is being sunk into real estate because that is seen as the only viable avenue to generate income with some security. Prices are escalating fast and rental units are being sucked up quickly and for all cash. If you don’t have cash you can’t compete. My trainer bought a rental 6 months ago. He is holding on to it for a year to lower cgs..and
            will likely DOUBLE his money…that’s how fast prices are climbing.

  3. AndyB

    Greg: good interview. It’s unfortunate that the captured media won’t give John any air time. My only caveat on John’s thesis for 2014 is that I don’t think we have that long; the ramping up of the police state is now on steroids; a telling sign. I have a gut feeling that we don’t even have 6 months.

    • The nationalist

      There are alot of things going on behind the scenes. Wholesale food prices are already in hyperinflation. 10% rise for the last two months.

      Crop losses around the world are staggering between 60 and 70%.

      We will see killer food prices this winter. Late Spring, April and May, is calculated when solar flares will fry all of the electrical stuff that is unshielded.

      War with Iran is planned for early October or November, before the elections so Obama will be assured of a victory.

      That’s a good guarantee to boost energy prices to astronomical levels. Figure ten dollars per gallon of regular gasoline is quite possible.

      • tribeseekert

        My guess is that war is planned for early October due to the Israeli elections, not the US elections. Certainly, Obama wants the war AFTER he’s re-elected.

  4. Dan

    Very good interview. Thank you Greg! It’s got me quaking in my boots.

    • Greg

      Thank you Dan, but don’t quake, prepare. The time we are getting is a gift. Peace bro.

  5. Sarkis

    hyperinflation not possible in US – Martin Armstrong

    “hyperinflation takes place ONLY in a peripheral economy and cannot take place within the core economy. Everything would collapse long before hyperinflation would unfold”-Martin Armstrong-

    • Greg

      Either way I don’t see how you lose with gold and silver coins. Thanks for the comment.

      • Sarkis


  6. Kellie

    2014, that’s great news … more time to prepare. Seriously, do you have car insurance? Health insurance? What about fire insurance for your house? How many people do you know that have had a house fire? We have been paying for all these insurances and hope never have to use them, right? Get your self some food insurance! It’s called long term food storage. Get some freeze dried items at http://www.shelfreliance.com. They’ve got packages ready to go that will feed your family for several month or buy one can at a time. The food is delicious and has a shelf life of 25 years without refrigeration! If nothing happens … you can always eat the food !

    • Greg

      “Food insurance” Love it!! Thank you.

  7. Martin

    It was great to actually see and hear Mr. Williams. It is beyond a shame that Ron Paul was so marginalized by literally both parties and the press. In actual fact the purpose of the so called stimulus , being the (for profit) FED printing OUR money , was to re-capitalize banks – NOT – stimulate the economy. It has not failed , the banks made high risk bets and lost and WE THE PEOPLE re-capitalized them so they wouldn’t go belly up.
    I am assisting my neighbors ( I have a fax machine) in trying to get a re-fi. They both work and have good salaries and credit history, the latest hoop they have to jump through is to cancel all of their credit cards before the application can be processed– this follows two other such nonsensical requests. The reality is that the banks do not want to loan out money at these ridiculously low rates ( they know that they are phony and are going up), they only want to take the money and go through the motions. AUDIT THE FED and FT.KNOX.
    We have a purposely dumbed down electorate that thinks all corporations are evil and should not be allowed to make money and that France is on to something with absconding wealth from the successful. Until the class warfare ends and the taxes reined in to encourage corporations to return to the U.S. ( GE pays ZERO taxes now anyway) we will never have the jobs that we once had. The entitlements all have to be rethought by brave men that know that touching these third rail issues will probably end their careers — Term Limits might breed that person– it couldn’t hurt.
    Thank you

    • Greg

      Thank you Martin and Scott for the comments.

  8. Scott

    Thanks, Greg. Most people I know are caught in The Matrix still and it’s very troubling. There’s no concern and no talk about this at all. The mainstream media and politicians are keeping everyone in the dark. It makes me conclude that people are going to be left in a state of absolute shock, anger, and panic.

  9. dean

    I want to thank you for all the great guests you have. John Williams knows the meaning of the word TRUTH.
    I just wish some of our leaders knew what it meant. They are so easily corrupted and bought for so little they are truly pathetic to watch.
    They will not take one penny with them . It is astounding to observe their lack of ability to do the right thing which of course would benefit them the most . Their reward would be the admiration, love and respect of the people .
    The wars could be ended today. You could create 23 million or 33 million jobs today ,just tell everybody to show up for work . We will rebuild our infrastructure and make everything to do it in our country. So that means we will rebuild our factories at the same time to make what we need as well as the best products in the world of all types we decide we want to make.
    We will pay people well and reward production. Overnight we will become a powerhouse and we will promote peace and understanding and in turn offer guidance and help to all other people of peace and goodwill. Why let common short sighted greed stand in our way when all of us can flourish and prosper!

    • Greg

      Thank you Dean for the comment and inspiration.

  10. Rebecca


    Thank you for all the great interviews.
    One may lash out at MSM for “not telling the people” about all this, but I wonder what would happen if MSM actually did paint a true picture for the masses to see? The panic and fear that would ensue might catapult the nation/world into the very abyss overnight.
    I read old newspaper articles about the government intervening to prevent hoarding money/withdrawing money from the banks during the Great Depression. It seems reasonable to expect the government to implement the same measures today.
    However, times being so different the outcome could be different too.
    A large portion of the nation’s populace lived in rural areas and on farms in the Great Depression; they suffered less because they had food to eat. They did not have the debt load of today’s Americans, so they could live better without “money in hand.”
    That is not the way it is today.
    Ask the question: What would happen if the eyes of the American people on a whole was suddenly opened to see the precarious economy? One would expect a run on the banks, which would lead to the government to taking over the banking system to prevent withdrawals, making it illegal to hoard. It is reasonable to expect mass panic that would leave to rioting and vandalism.
    So, how do you “enlighten” all the people without bringing on the very disaster that is coming — only it could in “one hour” instead one year.
    Not that I wish to defend MSM, but just exactly how would they go about telling everyone the truth without sending the economy into a tailspin?
    A gradual descent into the economic abyss will hopefully allow time for people to waken up one by one and prepare.

    Hopefully at some point, the expert economists will answer more questions begging for answers. Put up food. Okay that’s a given. But what happens to our debts we owe? If the money goes worthless, how do people pay their debts? What is the consequence if you can’t pay your debts? How does the economy recover — how does the banking system recover if all the people who owe them money through mortgages and credit cards, cannot pay them?
    Your economists say a new money system will emerge? What does that mean? How does a new money system fix the massive unpaid debt?
    I hope you find a economist to tell us what a new money system means.

    • Greg

      The only job of the media is to accurately report what is going on. The MSM is not supposed to be a spin doctor or hide and obscure the facts. I hope you are protecting your assets in hard asserts because no matter what the new currency will be hard assets will have value.

  11. Phil

    Good interview Greg. How about looking a bit closer to the European problems, now that the Germans have agreed to pay 190 Billion. Whats your take on that ?

    • Greg

      Much higher gold and silver prices are a lock on both sides of the Atlantic!!

  12. Nathan

    Greg , WOW , I Just watched this video literally 5 minutes before the announcement from the Fed about QE3-QE5 . It was SPOT on . The goons at CNBC even openly admitted that we will have “hardcore inflation” in about two years (Goes along exactly with what Mr Williams said) . Amazing .

    Thanks for all you do.

    • Greg

      it was an editing mistake that i could not correct once it went on You Tube. i hope it will not happen again. Thank you for your comment and support!!!

  13. Pat

    They’ve been “sounding” the alarm for years. It hasn’t happened in my lifetime.

  14. Davis

    Thursday 2:52 PM The DJIA and Precious Metals Explode Upward.

    Helicopter Ben is running his mouth again, channeling ‘Super Mario” of the ECB. “The FED will do what’s needed to support the economy.” Read: More QE via “unlimited” purchases of MBS (mortgage backed securities) and continued zero interest rates through 2015.

    More specifically keep growing the FED balance sheet by printing more and more money so the FED’s constituent banks can buy more and more stocks, and pay their board members bigger and bigger year-end bonuses. (It is September after all.) Wonderful!

    Another lesson not learned apparently. Trying to extinguish old bad debt with new bad debt is a fools errand. It is precisely why Europe is on the brink of collapse. The ECB just called for more bond purchases so the FED can’t be left behind in the race to the bottom. Who has the fastest printing presses is now the new competition between the FED and the ECB.

    What was it Henry II of England said? “Won’t someone rid me of this meddlesome priest?” (banker)

  15. Rfl

    You need to get Catherine Austin Fitts on your show and dove tail her new book with the fed reserve meltdown.

  16. Kerry

    Greg as one of the few Lone Wolves of Truth I wanted to say Thank You for your efforts. I fear our once great nation is lost! Death by greed…………….

    • Greg

      Thank you Kerry for the kind words and comment.

  17. BOB D

    War is expensive and we haven’t even started the after war cost.

  18. Victor

    Love the video interviews now. Today 9-13-12 The Fed started QE3 in Warp drive. My first call was to Scottrade so I can start pulling cash out of my IRA. Next start filling up all those Gas cans I have from the Y2K days. Keep saying “Yes Sir” at work. And convert my cash into Gold Silver, Seeds, TP, Storable food, etc. I didn’t think Ben was going to push the button, but hang on boys and girls, $8 / Gal Gas?

    • Greg

      Thank you Victor and Pat Sonti!

  19. Pat Sonti


    Excellent interview that all must see!


  20. Mitch Bupp

    John Williams is the real deal. His no nonsense approach to economics hits bulls eyes every time I read or hear what John has to say. I encourage everyone to visit http://www.shadowstats.com and read John’s primer on the CPI and how worthless it has become. In this time of QE insanity John is a beacon of truth because he can see through the governments phony numbers. Greg, When you have a chance ask John about hedonics and the GDP. I recently read an article from 2003 where it was found that about 35% of the GDP is just phony.. Is this true and what how much of the GDP today is made up of phony numbers?

    Keep up the great work….

    We are winning the information war as the governments phony accounting do not hold up under scrutiny…

    to any reader who needs a spell checker since the new windows programs don’t provide one… I use Speckie add on for windows explorer..

  21. Shawn in San Jose

    When I tell people they should prep for a financial collapse it’s not an easy sell. If I tell them to prep for a big earthquake and have 3 weeks of water and food they are more amiable to listen. Nice to see Mr Williams advocate something similar. The Hayward Fault is long over due. So panic or shaking , the prepping helps put all the same.

  22. Blue Dog

    I agree with John Williams but I think he’s overly optimistic about how long the dollar will survive. I believe we’re at the point where panic selling of the dollar could start at any time. Just like with an avalanche: conditions could be perfect for it but it takes something to set it off. Same with panic selling of the dollar.

  23. Patriot Ken

    Thanks Greg, great interview. We have been warned through our history about the dangers of paper money (Fiat money)…Some famous quotes that support this:

    I believe that banking institutions are more dangerous to our LIBERTIES than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. Thomas Jefferson

    We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver, no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people. Daniel Webster

    Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin!Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, willrout you out! Andrew Jackson noted of the second bank of the United States, the predecessor the the fed which came back into being 80 years after.

    My Dear Senator Weeks:
    Throughout my public life I have supported all measures designed to take the Government out of the banking business. This bill puts the Government into the banking business as never before in our history. The powers vested in the federal reserve board seem to me highly dangerous especially where there is political control of the board. I should be sorry to hold stock in a bank subject to such domination’s. The bill as it stands seems to me to open the way to a VAST inflation of the currency. I had hoped to support this bill, but I cannot vote for it cause it seems to me to contain features and to rest upon principles in the HIGHEST degree menacing to our prosperity, to stability in business, and to the general welfare of the people of the United States. December 17, 1913 Henry Cabot Lodge

    It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford

    The central economic problem plaguing this country since 1913 has been the presence of the federal reserve banking system. Without the federal reserve system’s debt-currency scheme having effectively supplanted the Constitutional monetary system based upon silver and gold, it would have been IMPOSSIBLE, not simply improbable, or difficult, but IMPOSSIBLE for politicians in the public sector and speculators in the private sector to have amassed the staggering level of UNPAYABLE, unconstitutional, and unconscionable debt that now bears down upon this country. Dr. Edwin Vieira Jr, Going to the Roots of the Problem.

    Men fight for Liberty and win it with hard knocks. Their children, brought up easy, let it slip away again, poor fools. And their grandchildren are once more slaves. D.H. Lawrence

  24. RICH99

    HYPERINFLATION has been assured since 2008…….this time will be no different……you guys have been consistently wrong on everything

    • Greg

      Williams has not been wrong and shortened his window doown the end of 2014. I wouldn’t go long the U.S. dollar now but what do I know.

  25. Herman Munster's Handsome Twin

    John – this audio discussion of Kerry Lutz with Martin Armstrong is quite interesting. He says (at 8:05) that hyperinflation happens when a country loses its ability to sell bonds (makes sense). But he says that hyperinflation will not happen here because those in control (the money masters) will go to war before it happens. That makes sense too, and makes one wonder if the U.S. and Israel have been beating the war drum with Iran for that one reason – when they see that the dollar actually starts to collapse, then BOOM – start war, or create a false flag event which will dupe our nation into war.

    The part of this discussion which is difficult to believe is when, at the end of the discussion (at 16:15), he states “.. after 2016 is when we’re probabaly going to go into a major, major downturn.” But, as we have all learned in the last few years, timing is very difficult to predict.


  26. DEB

    Great interview. Can you tell me what can happen to a real estate investment (2nd home/vacation rental property)when hyperinflation hits? Will the mortgage be paid off in cheaper dollars or renegotiated with a new currency? I would like to purchase at todays prices, but I feel uneasy. I was hoping it would be my retirement home in 7 to 10 years. What is up or downside here??

    • Greg

      I do not see much upside and a lot of downside risk in real estate at this point. I think it will be “renegotiated with a new currency.” Also, when rates go up your investment will crash and rates are at all-time lows right now. You should feel uneasy if you do not own this property outright. What we are headed for has never happened in human history so I don’t know how it will all shake out. I do know it is going to make the Great Depression look like a cake walk. Two things were stable during the Great Depression- the U.S. dollar and the credit rating of the United States. Both of those are going to get crushed in what is coming. We are in for a very rough time. Please change your point of view and prepare for rough sailing not for some happy-time retirement. I am not trying to be mean here, but give you honest appraisal of what is coming.

  27. Vvv

    Deflation is very likely given US population age demographics. That is, the aging baby boomers will be spending less, less spending, means less demand, lower demand means lower prices. Treat precious metals as a form of insurance for puproses other than an inflation hedge.

  28. This Guy

    Thanks so much for this timely and informative interview.
    Quick question…I have a concern about the govy confiscating PMs like they did in the 30’s. Are there any other places to put some money? Real estate tends to be a bit tricky and as Max K says, ‘how do you know the area you buy a home in will still be livable after the economic meltdown headed our way? I’m thinking manybe…jewels? Your thoughts please…

    • Greg

      This Guy,
      You should have a diversified tangible portfolio is all I can say. I would not sell PM’s to buy jewels because it is very hard to price them when you need to liquidate. gold and silver coins are already a form of money and are easy to trade or cash in. You do have to pay taxes but you have to do that with just about anything. I am not an investment advisor and I sell nothing but ad space on this site.

  29. denard

    I have no problem with what you or john is saying.If you really cared about the fate of this country you would tell the truth as to why this all happening.I will try and condense it and hope you get the message. Germany,Italy,France & Mix Spanish rulers King & Queen Fernandad and Isabella conspired with Africa & America and sent their hitman Christoforo Columbo in their final conquest year 1484 + 430yr(Exodus mathematical formula from low to rise-look it up)= 1914 Archduke Fernandad assinated,Federal Reserve,Off gold standard,world war one starts(WWI). Good old Abe Lincoln had fore knowledege of this fact when he So-Called Emancipated US as a joke(He knew 1914 had to expire) only because the sword of Domicles was over his head just ask the Confederates. However, his sacrifice(assisination) allowed a 100yr grace period for the above perpetraters to REPENT,ATONE AND PAY REPARATIONS(So-Called African Americans,Hatians,Jamaicans,etc). which ends winter 2014. The elite knows this and refuse to make amends even at the sacrifice of their own people.This is the foundation of this mess/madness. The only way to stop this is to ordain and install as the just one from the former slaves(SEED-male and not Egg-female(michelle is just buying time).If this is done America will see the vision of the forefathers regarding that PERFECT UNION and will blessed and her fame and glory will supercede Egypt. However if we pass this opportunity then she will be infamous and the GOOD BOOK has a name for her “MISTERY BABYLON”.1484(Final Conquest)+430yrs(Exodus)=”1914″(No Accident)+100yrs(Good old ABE)= 2014 Winter(Show Time). Research it and take it to mind this info and if you find it to be false then disregard it and if you find it to be a GOOD THING then TELL IT!!!Thank you.

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    I couldn’t refrain from commenting. Perfectly written!

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