May 2013-End of the Road-John Williams
Greg Hunter’s USAWatchdog.com
Anybody who thinks the U.S. is in a so-called recovery isn’t listening to economist John Williams. He contends, “We haven’t had a recovery and we’re not about to have one, and it’s getting worse.” Williams says it’s because, “The consumer is in very serious trouble. . . . The average guy is not making it. His income is not keeping up with inflation.” As far as Congress getting the budget and debt ceiling under control, Williams says, “Both sides are faced with devil’s choices.” If Congress does not get its financial house in order by the new deadline in mid-May 2013, Williams contends, “It will be the end of the road . . . . They are not going to have another opportunity . . . they are pushing the limit as it is now.” Williams says he expects, “. . . a negative reaction in the next 3 or 4 months to the dollar.” Williams adamantly continues to predict hyperinflation to the U.S. dollar by the end of 2014. Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com.
Greg….check out the recent chart of the ‘velocity of money’ floating around net and see where the velocity of $ in our economy right now is following the exact same path that existed from 1929-1932. It’s proof positive of what you, Johm Williams, etc. are saying.
Wayne, do you happen to have a link to what you’ve described re: the velocity of money? I’d like to see it.
Lori…..I saw the info @ kitco.com / gold forum / The Economy, Banking, etc. There’s a very good discussion on this subject.
Thanks Wayne for the reply; I will check that out.
I wish I could say otherwise but alas I can’t. We will eventually indeed end up having hyperinflation due to the debasement of our currency. It is just a matter of time. For those wondering what the solution might be to our current predicament, the following needs to happen but all are considered too severe and the current political climate wouldn’t allow for it to happen anyway
1.End the federal reserve-it is an insane and corrupt system that enslaves our government and its people
2.End all wars now-contrary to popular belief this would actually make us safer
3.End the welfare state-this is unsustainable and must be restructured
4.Create conditions that would create jobs and opportunities-severe tarriffs on imports and encourage for the manufacturing base to return to this country
5.People to realise that the MSM is joke and just dumbs people down, tv, talk radio, and newspapers are not reliable sources of information, just mostly propaganda
Will we ever see these implemented, not likely, therefore it is hopeless. All one can do is act upon what is within his or her control, goodluck to you all.
1) End the Fed – totally agree. As we can see now, under a truly unscrupulous leader the Fed can be used as the gov’t “piggy bank” – by devaluing our Dollar.
2) Not sure I agree on the “end all wars now” – but I do agree, let the countries protected by us PAY US for the cost. But, we take the money and put it into R&D for defense. But, also, defense contracting is like all other gov’t contracting: The original cost of [x] is always [x} times some crazy number and never on time. Streamline it and make it accountable.
3) We’d have to phase out the welfare state – suddenly just stopping the money would plunge people into serious poverty. Call it 4 years to wind it down.
Further: Go to private insurance companies and follow their models on catching fraud. Make it incentive based.
4) Creating conditions: a flat tax exempting only food on purchases – no other federal taxes. PERIOD.
Tarrifs: REALLY bad idea – see Smoot-Hawley Tarrif Act – it did not end well.
5) That one is a pipe dream – people in power in the MSM are not simply going to give up on their ideology. We, independents, used to think “should [x] or [y] happen – they’ll tell the truth” – but now we see that the loss of our personnel (F&F, Benghazi) and blatant sexism (feminist jurisprudence – Duke Lacross), racism (no one is allowed to disagree with Dear Leader), and anti-Christianism (see: how Muslims are treated vs. Christians) – we thought if certain lines were crossed then the MSM would speak up.
They never will. They would have to admit (especially to themselves) to bias and complicity. No one cuts their own throat financially, indicts themselves (see: DOJ), or advocates for the end of their own jobs (diversity programs).
Greg: A penny saved is a penny earned only if its a real penny. Solomon said: proverbs 1:14 Cast in thy lot among us; let us all have one purse:
15 My son, walk not thou in the way with them; refrain thy foot from their path:
16 For their feet run to evil, and make haste to shed blood.
17 Surely in vain the net is spread in the sight of any bird.
18 And they lay wait for their own blood; they lurk privily for their own lives.
19 So are the ways of every one that is greedy of gain; which taketh away the life of the owners thereof.
People that create bad plans eventually are destroyed by them.
Your headline made me look twice. I like John Williams and I think he is smart enough to be careful about putting exact dates on a crisis situation or a SHTF type scenario.
It is very difficult to put a timeling on the crisis, and I think John knows this, so your headline above really caught me by surprise. I think your next to the last sentence is better-“Williams adamantly calls for hyperinflation to the U.S. dollar by the end of 2014.” May 2013 may prove to be “the beginning of the end” or the beginning of the dollar crisis, but most likely not then end of the road.
Thank you for having John as your guest. I see him as a “good guy” and a real champion of the common man.
How many yeas are you right wingers going to yell WOLF on the coming so called crash? I visit this site and others and you are all yelling crash crash crash. Almost like you want it to happen. Are you so unpatriotic and hate your president so much that that is all you wish for? I do not get it.
I second that for Greg Hunter, who has been doing a GREAT SERVICE to this country for years on this matter.
I was one of the few forecasters who told of the economic crisis to come. I did this in the late 1990s and repeated my warnings in 2004, 2005 & 2006 before it came in 2007 and then morphed into the Economic Emergency of 2008.
All the corruption, fraud, lying, money-laundering and on and on and on in the banks and the markets has been behind the economic crisis.
Greg Hunter is featured on my blog for good reason and will remain there. He tells the TRUTH and the TRUTH will set you free. Keep up the great work Greg!
the economy in the good ol USA is the largest in the world, so lets say it collapses and gold is at 10000 per oz. So what are you going to do if the $$$ you rely on to value your gold is worth zero.Your gold etc will also be worth zero and SINCE there is not a structure in place anywhere in the World where there is a structure in place for exchanging these commodities for others. It would be chaos and the PTB will overwhelm you all.
Do you guys really think you are going to survive on your silver, guns and gold,and trade with whom? Food is the most important commodity and without a working transportation system NO FOOD etc. Wow ever heard of self fulfilling prophecy?
However, since you guys want a collapse, my question is why do you want a collapse? My only conclusion is that you hate your Country, thereby making you unpatriotic imbeciles or fools? Why not write your congress men/women and senators and urge them to work together for the good of the country?
Cizzi, gold will be used as money, a medium of exchange, just like if you have food, gas, ammo, fertilizer, seeds, etc…
Government could collapse bad enough that it would not continue to exist in it’s current centrally controlling manner and the states would be left to themselves…
My friend, based on what I read of your comments I can see why you ‘don’t get it’. Many of us on this site come from backgrounds where we had to work our way through college instead a gov’t paid education, we had to start businesses without fedgov ‘set-asides’ because we weren’t deemed to be disadvantaged enough & had to scrimp & save to keep our businesses viable because the gov’t guaranteed SBA loans were never meant for us.
Along this journey we developed instincts to see through BS and cut to the chase to reach our goals, we learned to see beyond empty political rhetoric and into the reality of situations which includes our country’s insistent march to national suicide through scams like NAFTA, the illegal immigration mess and the in your face Marxist laced fedgov policies that follow the 10 Planks of the Communist Manifesto than it does the Constitution.
We know for a fact our ‘backed by nothing’ fiat currency cannot last much longer because history has proven repeatedly this type of monetary system has never succeeded & this one won’t either….I suggest you start studying the facts and quit watching TV re-runs.
Greg: I am trying hard not to over post on your site, but I have to say WAYNE is so right. Right as rain. The people that visit this site are the true patriots willing to spend time to learn what is going on with the money.
It is easy for weak minded people to look to a leader to solve the problems a nation has allowed to happen. I am neither right , left , or liberal , or conservative. I am a constitutionalist that That understands what our president is attempting to set up. A oligarchy.
Attacking the president (again), he wants to set up an oligarchy, you are an idiot. 1st it existed way before Obama. and 2nd what proof do you have? No fact just prejudices!
Both parties BENEFIT from us balkanizing and polarizing to one side or the other. Each party saying “give US more money and get us in power and it’ll change” and … it never does.
Look – it’s simple math.
We keep devaluing our dollar. All comodities are sold on the open commodities market in Dollars (or leveraged by Dollars). SOME countries are starting to go away from that – which should scare the hell out of you. They are signaling that our Dollar is not to be trusted. And all that cash … TRILLIONS, held as reserve currency, if it got dumped on the open market … would cause a serious run on the Dollar.
Even a best case scenario (rainbows and unicorns time fantasy to follow) and we balanced the budget tomorrow :
1) If we put $250 Billion a year towards paying back our debt it would take almost 70 years to pay off the debt.
2) If we ALSO collected $250 Billion a year and electronically “burned” it, to revalue the dollar it would take 7-15 years to revalue it to 1990’s levels.
3) Every senior who has, say $1,000,000 in the bank, who save scrupulously for years, still has 1 Mil – but the BUYING power of that money has been decreased by AT LEAST 20% in the last decade. Think that over and let it sink in – all those years of saving, all that time to let compound interest do it’s thing, and 20% of your savings has been devalued away from you.
4) The fact many banks and gov’ts are now OPENLY talking about “bail ins” – it’s openly being discussed about CONFISCATING YOUR SAVINGS “if in the extreme case of an economic emergency – which will never happen”
And you think – he’s crazy, it won’t happen – then WHY did the IMF and other banking instruments go along with it, and the EU parliment just DO it, and it CAN happen here. Why would anyone write legislation about an event that won’t ever happen.
No one is writing legislation (nor would I want it done, at all) saying “if the economy fails, all politicians are to be immediately imprisoned” – I mean, since it will never happen either.
One of the last acts of any gov’t, before the collapse, is to loot the treasury.
Greg et al are not nuts – these things HAVE happened (all except for my #4) – Left & Right is a shell game, don’t buy into it.
I hear the voice of many I know echoing in your words.
When I speak of this to my sons, I see fear in their faces.
They are young. They want to have a “good life” and happy times.
They don’t want to hear of an economic crash and hardship.
I don’t blame them.
It doesn’t make me happy either.
Do we want it to happen?
Who can stand the thought of people suffering, children and elderly going hungry.
And for all the “experts” out there who tell you what you need to do to protect yourself, how to get ready for the collapse, what you need to survive, etc. etc. etc. … well, we’ve never been through a collapse of the nature that is forming now. I don’t know if anyone truly knows exactly what will happen. They have ideas. They look back in history to determine the future, but this is not the ’30s. People are different today.
Society survived the Great Depression as well as it did, because a lot more people lived on farms and in rural areas back then. They knew how to live off the land. The people in the metropolitans suffered the worse.
But this is not the 30s. People have distanced themselves from the land. People today have tech savvy, but have lost the skills to grow, can, preserve, and butcher your own meat. You might not agree, but I think folks in the 1930’s were a lot more hardier than we are today.
I live in the country. I grow a large garden and preserve all its produce, but I wonder if I have what it takes to provide for my family if the going gets tough – really tough.
How people respond to an economic crisis when it impacts them personally, is a hard factor to predict. We’ve seen videos on the rioting in Greece and other European countries where austerity measures enacted by their governments have caused great suffering among the people — and some fight back. Would Americans be any different if austerity measures were put in place here? But we don’t have legislators and administration with backbone enough to do the hard cuts, because they would hurt people. Instead, they will play their economic roulette until the bullet fires that ends the game they are playing with the American people.
My grandmother had a saying, kinda harsh, but I think it fits today:
“They won’t go to hell for a dollar, but they will fish around the edge for it until they fall in.”
Our legislators won’t do what is needed to prevent an economic collapse. They’re “fishing around the edge” and one day we will all fall in.
Do we want an economic crash?
NO! You mentioned the old children’s tale of the boy crying wolf.
Do you recall the ending? When all had grown tired of the “crying wolf” and no one any longer listened to the warning – then the wolf came and devoured.
Fortunately, mighty kingdoms take time to tumble.
Even the Roman Empire did not fall in four or five years, under just one emperor.
Count each day we are given before the collapse as a “blessing,” and use it wisely to prepare as much as one can.
And, CZZi, pray that it holds off for as long as possible …
for the sake of multiple millions of people who refuse to listen to the “crying wolf” and aren’t ready for the day the wolf comes to devour.
My eyes are open, but I am not ready for that day.
I am not in a hurry for it to get here, because “this is gonna hurt.”
Exactly where are you, Czzi? Our President deserves respect for his office but it does not mean that he is doing a great job or that I have to be happy about the direction he is taking the country. President Obama deserves a Nobel Prize for economics just as he deserved the one for Peace.
People, even US Citizens, are being killed at our President’s request. The economy is in REAL decline. Greg is warning people about our country’s pending bankruptcy. No one here wants it to happen anymore than the passengers on the Titanic wanted to take a dip in the chilly North Atlantic. But if someone like Greg Hunter was around to warn the passengers, then those who heeded would have taken a different mode of passage to the USA. Just like the ones who prepare today will be in better shape when the coming storm hits.
Sorry the truth upsets you. Turn your TV to CBS. You can be one of the people who says, “No one saw this coming”
Where were you when George the terrible Bush was destroying this country? Where were you when republicans gave us the Patriot Act, destroyed the Postal Service, destroyed education through No Chid Left Behind? etc?
Ever since Obama got elected all we here is the end of the world, from this site and the likes of infowars, drudge, et al. Sounds racist to me, after all did not you guys say he’s not even an American citizen?
No he is not a great president, name one in the last 40 years who was, and please skip the Reagan accolades! He started the downward path of this great country.
BTW I live in hurricane country and in 2004 had three hurricanes hit us here in central Florida. I know about being prepared, HOWEVER, you can only prepare for a certain time period, then without outside assistance your time runs out! Same thing would happen in an economic collapse. BTW the great depression did not destroy the dollar, it survived. Wow think about that before you want to see your collapse!
Great interview, keep up the great work. This world news allot more people like yourself exploring the truth.
We have seen this before and it always ends one way … the economists know it; the FED knows it; many of us not drinking the kool aide know it … yet 300 million sheeple are oblivious to the reality of math!
as far as taxes … the playing field is gone…. those who buy access to Congress have shed their tax liabilities onto those who can’t afford to buy Congress.
Once the hidden taxes created by Obamacare hit and more tax is shifted off big business onto the working man or woman.
The GDP is distorted by hedonics!
Consumerism will never sustain an economy if the products are not made in foreign lands. Student loans are an economic trap…..
John mentions the CPI and how seniors have been short changed but he is missing the bigger picture that the real poverty level is systematically being lowered with the CPI.
Thank You Greg and John
Hmmm. I wonder why JW is never a guest on any of the “indoctrination media” financial networks?
There’s obviously some “carrot & stick” strategies going on in regards to making a shift out of debt currencies toward asset currencies, but the process is very tricky. I’ll explain. Assets (debt-free) such as gold and silver only have enough monetary liquidity on the basis that their trade values are permitted to rise. This is because of their limited supply. That stage has already been set and was so in 1971. The other challenge is how the migration would take place because on the basis of real-time trade values (which we now have), the impetus for the market to migrate over to real-time gold-as-money must come from the market , itself. It cannot be a top-down proclamation or top-down process because the dollar would then be vulnerable to a very sudden crash (no fixed peg). The process must be organic and thus the market must lead itself into real-time gold-as-money (denominated as weight) , which is currently a market reality with competitive gold backed payment systems operating in today’s market. Almost any one us us reading this post can now use gold or silver to make exact bullion based payment for a peanut or a piece of real estate on the basis of a debt-free transaction where there is complete settlement, no debt creation and no lingering debt …. all in real-time with a simple mouse click. Debt-free store of value has now married with instant global liquidity in real-time, but don’t expect to hear a cheering section from the elite. They CANNOT overtly support the migration. All they can do is “carry the stick”….more inflation of debt. Some evils appear to be necessary to “the script”. We are all following the same script. Only the chosen roles differ.
John Williams is a broken record. He has been preaching hyperinflation since 2009. He predicted hyperinflation in 2010, 2011, 2012 & 2013. Now his date is 2014. There will be no hyperinflation in the US. The Dollar will not collapse.
I don’t know if the dollar will collapse but we sure as hell have had price inflation since 2008. The media just ignores it and parrots the government’s claims that inflation is low. But in the last four years I am paying 40% more for sugar (and higher for anything containing sugar), pet food is up 100%, and food and dry goods packaging has shrunk by one third. Peter Schiff did a survey of price increases in the last ten years and says that every item on his list is up about 50%–all this while wages are stagnant.
On top of that, the cap was taken off the electric companies and now my monthly electric bill is one third of my income! I live on Social Security and the last cost of living raise Congress deigned to give me amounted to an extra $12 a month. So don’t wonder why so many people are on food stamps.
I’ve spent much time on this subject. Much has been said by writers around the world as the masses watch t-v. Why has this happened to our global economies? The answer? Simply speaking—Control. Population reduction. The U.S. will come under U.N. control when the dust settles. Or, the fires are put out I should say. Our Constitution will go up in flames first. The elite will simply go into prepared underground shelters as the army ELIMINATES the useless eaters above. No need for Chem-Trails after that————————–
I love this site. Greg, you are doing a good service I just wish it would gain momentum faster! The spread of the truth that is. I tell everyone I can to watch your site.
I agree. There seems to be a lot of political will, just no governing will. If you want to look at people protecting their own best interests, just look at the, as Mr. Celente calls them, the gang of 537.
We have to look at our spending. We cannot afford to invade every world country. Obama needs to be stopped.
A sensible plan must be devised. If not, I say a pox on both the Dems and the Repubs.
PS. To the yapping poodles of the Fourth Estate, I DON’T care about Lance Armstrong.
Why is there not one single person with influence calling for the IMPEACHMENT of the whole CONGRESS and the EXECUTIVE Branches of our federal government for continuing to uphold their sworn constitutional duty?
The Senate and House have been failing their duty for decades. The Executive has done it for several Presidential administrations.
These crooks need to be replaced in-total and the new bunch watched more closely. But when will this happen…….
Found it hard to watch the movie “the Road”
Finding it harder to not believe it rhymes.
I watched this interview in earnest as a few years back I did subscribe to John Williams website. The information he presents is interesting, and he is not the only one out there who indicates higher inflation ahead, weakening dollar, or unemployment actually higher than our government publishes. My problem is this: it seems we’ve be hearing this for more than 4 or even 5 years now about hyperinflation or even collapse of the dollar. But it’s not happening. In fact the dollar has been holding its own, and the market has risen to near its peak that occurred 2007 in a number of indexes.
Other than re-subscribing to John’s website, what empirical evidence exists that definitively shows this hyperinflation is actually going to happen, or that the dollar wil drop substantially ? I mean if we have to wait again until 2014, to see if it’s going to happen, this sort of becomes the boy who keeps crying wolf scenario.
I don’t doubt we get some level of inflation, but what’s to prevent slowly increasing inflation, or very gradual, and no hype relation at all. In that scenario the Us services it’s debt with far cheaper dollars. This could go on for decades more. Peter Schiff has been calling for this sort of scenario since before 2004, of hyperinflation, so again, what John is saying is not new.
Not sure this is worthy to continue in this paradigm. Maybe things will work out just fine.
Thanks Greg. I think this is going to be very difficult to convince the average citizen of this eventual happening. There seems to be an awful lot of complacency if what John Is saying is going to be true, and what you have been indicating and watching for some time now.
As far as currencies go, the Yen seems to be in far more serious trouble. Far more massive debt to GDP ratio exists there, so I’m wondering why they haven’t experienced hyperinflation. They seem to be at more of advanced stage of trouble than the US, as they have been easing for years, and their market bubbles occurred about 10 years before ours.
This stuff is extremely complicated to understand and divine as to how it will play out.
http://endlessunlimited.com/?page_id=217 – Reading “Hate the Game” by Author Michael for the second time… I recommend everyone read it… at least once. It gives a very clear perspective as to why WE are in such a huge mess. All Governments including the U.S. are very self serving entities – They do not have the Peoples best interest in mind.
Nice reporting as always although i don’t think any time line should have been mentioned/IMO/As for what i know.We shop for grocery’s at Wal Mart and i’ve noticed prices are moving up on some items 8% and 6% respectively.I don’t think inflation will be the TRIGGER that we spoke of but rather an increase in interest rates and then a huge bond collapse.I do expect eventual hyperinflation there after,just not in that order.Your thoughts on this please.
Greg, some just won’t except the facts, even Martin Armstrong has said HI will not happen here, but if you look at it, HI has been going on for a long time under the control of the cartel’s own time frame, trillions stolen from the USA & the rest of the world, jobs never returning & it’s not over. To many things going down we don’t know about & as Mr Sinclair states, “be prepared to defend yourself”, the banksters have us surrounded!
Your voice has been & will continue to be a light that burns bright for those who dare to think for themselves!
Thanks again for the Real News!!!
Thanks for the great interview. You are helping everyone to get prepared for the upcoming “correction. So much appreciate all of your hard work!
I would like to point something out to your readers that they may not be aware of and that is a study that was supposed to be commissioned by JFK, but that is not true. “The Report From Iron Mountain”. You can get this on Goggle. I have been aware of this thing for sometime and it is not a hoax as some would have you believe. The new world order is in progress and has been for a long time. Things are just now beginning to come together. Read it and digest it and let all your readers know what is going on here. Betts
Greg – Thank you once again for having the FACTS presented by John Williams – another excellent interview and one that should resonate with your readers / listeners. Mr. William’s work has been and remains the base of statistical reference for those seeking a Factual Accounting of our Fiscal and Monetary Circumstance.
Statistical misreporting from our national agencies charged with doing the math are an utter joke. Pick an acronym… failure abounds – pervasive accounting fraud on a level almost unimaginable.
Another important interview and one of the more important ones in your ongoing series here. Thank you and please keep up the good work. I will be making my first donation today, to show support. Everyone here reading and listening should contribute to your efforts. I deeply appreciate the work you do and believe you are living your obligation to your fellow man/woman.
Not to sound like a Johnny Raincloud, Forrest Gump and or Rainman, but Jens O Parsons – The Dying of Money should be read by everyone here, in my humble opinion.
Bernanke’s monetary policy is blatantly obvious -attack all economic problems by creating money.
This is his solution, Obama is a huge proponent as well. All issue can be solved by more money… they will not stop, period. History has shown time and again how this ends.
We are the Modern Weimar Republic Banana Plutocracy of 1919 to 1923.
And out timeline appears to align closely with late 1922.
Congress is not going to do a damn thing, they are beholden to this mess and have not the ability nor the backbone to stop it.
Paper will burn and as John has presented (Factually) our imbalance is near $7 Trillion, not he dreamland numbers reported by our Nanny Statist Cooperative.
We are headed into HyperInflation, it will begin with 20% and then 50% price level increases in the things we need to maintain our daily living arrangement.
Although Broad Money Supple measures and Velocity imply a Market meltdown at the moment, panic will ensue at some point… the Malfeasant Alchemists will depress and pull even harder in a vain attempt to prevent collapse.
And it will fail… Energy creates Money as People are about to discover.
The poverty of imagination by our citizenry is astounding, we reached the zenith of “America” long ago and it certainly appears very challenging times are directly ahead.
Will be making a contribution and encourage everyone here to do the same, the amount is not material, the continuing show of support is… Be well all.
I just wanted to let you and Mr. Williams know how much I appreciate your efforts to inform and educate. You are a light in the darkness, and I appreciate your efforts!! Thank you!! I have witnessed first hand the economy getting worse and people’s desperate actions after losing their job. Even my own state is currently listed last in the credit ratings among the states now, for their inability to deal with their budget crisis. Illinois has become a microcosm of the federal play. Kicking the balanced budget can down the road and letting bills go unpaid because amazingly people still have faith that the “government” will eventually pay them. They cant fathom that the “government” could ever be insolvent or cant somehow pay their bills, even when they have been 6 months in arrears in paying them for YEARS (see Dan Rutherford’s, Illinois Treasurer, comments on his state website.) besides being the world reserve currency, I’m sure that this blind faith is a partial reason for why the dollar has remained so strong for so long…. People’s faith in what they “know” in their own lives, and I’m talking about people overseas as well as here at home — the dollar has “always” been strong, so they can’t imagine it not being so. And who can argue with the sheeple’s logic like that???
Greg, our gang of 535+1 are smart people who know the average Joe is trying to get a 12 pack with burger & fries and a place to watch the “stupid bowl”. The “gang” understands the sheep are grazing and that that their brother, the MSM, stages for them. Being that they know all of this, they know they can do what they want even if it kills the calf which feeds them. Alternate media has, and will, continue to be discredited. Frankly, its just the way the elite operates, greed & power takes over and each great society marches into history. Were almost there, yes, I can see the cliff now.
This was an awesome interview. JW threw me a curve when he responded that he saw the dollar rupudiation coming in the next 3 or 4 months. Like i told a friend, JW does not say usually things like this unless he can prove it.
Keep up the excellent work.
The dollar is not going to crash. There may be grumblings in foreign capitals and “secret meetings” between finance ministers but, for now, the dollar appears to be safe.
Foreign countries don’t trade in dollars because they like America. They do it because they have no choice. If they want oil, they need dollars; it’s as simple as that.
It’s great to talk about a “basket of currencies” replacing the dollar, but that’s still a work-in-progress. It might happen, or it might not; no one really knows. What’s clear, is that we still live in dollar-centric world where paper claims on wealth are arbitrarily increased at will by a handful of unelected officials at the Federal Reserve. It’s a process which relies more on Gutenberg than moral authority.
There’s no sign that the dollar is about to lose its position as the world’s reserve currency. For that to happen, central banks would have to start unloading US Treasuries, which they are not. Despite record government spending and mushrooming deficits, there is still a strong appetite for US debt
The financial crisis hasn’t hurt the dollar a bit. The dollar isn’t getting weaker because people are dumping it, but because Fed chief Bernanke is managing its value downward to increase exports and reduce the true cost of household and financial sector debt. What doomsayers are calling a “crash” is really just part of the Fed’s plan.
One more post…will Mr. Williams come back on your show and apologize when he is proven wrong?
I think you are misunderstanding what Mr. Williams said. He said there would not be Hyperinflation until 2014. Does that sound like collapse? What he is talking about is dollar repudiation not collapse. If it collapsed in May 2013 what would be the point of saying 2014 on the hyperinflation? The dollar can continue as a domestic unit of denomination (currency)but not as an international unit of trade (like the Mark in 1921/22. It was repudiated in international trade first and then collapsed domestically a year later.). Once the dollar is repudiated it won’t be long before it collapses in this country but it will still exist in some form, perhaps only electronic.
Just for your readers to understand about the economy as it appears to be gaining strength.It is essential that everything remains exactly where it is ,interest rates,stimulus,govt. spending and so on.If the economy keeps going up, interest rates will rise and then more stimulus is needed in order to keep up with the debt tab.(interest on 16T)+ an exit from treasury’s This is how fragile the situation is .Any slight movement will cause a rapid collapse.Now keep in mind that i have only mention the US.All the Major economy’s are linked so with that in mind any other will also cause a domino effect
Although brief i hope this helps
Washington is not even talking about budget or deficit now!
First, they talked about gun control. Now they are talking about the immigration reform. I suspect gay marriage is the next hot topic. May be abortion after that? Obesity problem? I have a feeling that both President and the Congress are procrastinating. I think they put the economy in god’s hands and pray that the debt problem will somehow miraculously disappear.
Unfortunately the economy is in the hands of Wall Street big bankers and they are no angels. May be we are all doomed?
Always good to hear John Williams. However, at the 00:02:50 mark in the video he said that real estate sales are dropping. That is when my jaw dropped. That is one Shadow Stat I am just not seeing. I just gave up trying to buy real estate because I was finding that houses here are sold within days of being on the market with buyers pitted against each other to bid up the price. Heck, my agent wants me to write a letter to sellers throwing myself on their mercy to accept my offer because I am a really nice guy or present a sad sack story that the seller could relate to. I am seeing this upsurge with my own eyes and it is appears to be prevalent nationwide. If you can clarify, I would appreciate it.
It seems like China would be the one to instigate a repudiation of the dollar, if it wasn’t triggered by some other adverse set of circumstances. They have a lot to lose now with respect to all the millions of people they’ve brought up into their growing “middle class.” they keep making specific arrangements with other countries directly in fx trading, essentially attempting to eliminate the dollar as the middle man. I think, truth be known, the entire world realizes Wall Street has too much power, and that’s principally due to the reserve status afforded to the dollar and how most world trade is conducted. You take the dollar out of the equation and Wall Street loses a lot of its influence and power. While the average Joe on the street might applaud that reduction of power, the ultimate consequences could be far more disastrous than anyone now expects. Sort of one of those “be careful what you wish for” scenarios.
There could be one huge massive global reset, if suddenly the rest of the world, particularly Asia, and many other developing economies, create a currency situation that takes into account their much lower wages and standards of living. Then maybe the reserve currency status that the dollar represents becomes the reserve currency only of the “older” and far more heavily burdened developed economies – namely the US, and Europe. Europes debt problems are the mirror image of the US. While China or India may still wish to export to us, they could make it more on “their terms.” suddenly, oil prices, and many other commodities could become substantially more expensive. Like overnight.
I’m trying to describe this in Laymans terms, and not introduce the fancy terms economists typically use. A one world currency doesn’t fit all, and that’s primarily an elitist pipe dream. The problem I have with nearly every English speaking pundit, is that their perspective doesn’t really take into account China, India, or many of the rest of the worlds still developing economies. They speculate a bit, but they don’t KNOW it as they profess to know it. One of the few who has some semblance of insight on those cultures But is labeled as sort of a loud mouth or even huckster and that’s the famous commodity trader Jim Rogers. He’s too blunt for most media outlets and goes on a lot of rants.
China doesn’t need to completely abandon the dollar, and neither do those other country’s in order to have a massive adverse impact.
Greg, who do we, or should I say u.s. corperation owe all this fiat money to?
John Williams continues to build a solid case that the U.S. sovereign debt is “beyond containment.”
The Federal Reserve and the U.S. Treasury have extended trillions of dollars at near-zero percent interest to major banks and financial centers (domestic and foreign) – to bail them out when their blind bets on sub-prime debt and derivates went bust.
Fed policies have generated significant inflation over the past 4 years (e.g. average U.S. gas price Jan 20, 2009: $1.86/gal; Jan 21, 2013: $2.36/gal.
It is time now for U.S. citizens to be provided with the same liquidity benefits that the Fed has showered on their major “dance parters” in the banking world.
The Leviticus 25 Plan will reduce / eliminate debt at the family level in America and advance the cause of economic liberty. And this plan pays for itself over a 10-15 year period.
It is the only plan that offers a chance to pull America out of the ‘glide path’ we are currently on – to ‘hit the mountain.’
Lots of comments on possible triggers for a collapse. Rising interest rates are key here. The fed has been holding back the tide with ZIRP and this cannot be sustained indefinitely. This plus other factors may be the cause of systemic collapse of our financial systems but the trigger and catalyst will be the disorderly unwinding of $500trn of interest rate sensitive OTC derivatives caused by rising rates and a bursting bond bubble!
Great artical and interview. I think more people are aware of whats to come than you think. Its just that they do not know what to do. The whole money pumping fraud is so far above most folks that is hogwash. Little do they know the market would be about 7k or less without it. So long 401k!!!
I still fail to see how the Fed pumping could possibly stimulate our ecomony..Nothing but confidence,and business friendly policy can do that.
I think I found the perfect cave to hide in….
Of course FED pumping will stimulate the economy and it continues to do so to greater or lesser effect. It could do an excellent job if they really opened the spigots, but for ho long. Problem being that ‘pumping’ is inversely proportional to ‘confidence’. When the two cross over watch out. We are close to that point now.
Another great interview!
Hopefully enough people will be prepared for what is coming.
With all due respect, I do believe David Johns (above) is correct. I have followed John Williams for several years now. He was predicting hyperinflation a few years ago. For a while I was thinking John, and others who are predicting hyperinflation could be wrong, but I don’t believe so – I just think the timing is not an easy call to make. Plus, the money masters have many tools and levers to use in order to drag the dollar’s decline on longer.
Do I think any less of John Williams? Absolutely not. I think he has gotten a little wiser about putting an exact date on the “end game.” As I said above, John is a good guy. He is a sincere man. Putting an exact date on hyperinflation is like trying to predict when an glacier will fall apart.
Btw Greg, I love hearing John Williams, and listening to what he has to say. That other guy….Kotlikoff…he was good for a laugh, not much more, in my opinion.
Great points! If people prepare in an intelligent manner they will not be harming themselves, if by some very remote possibility, we are wrong. If they put away food, water, and things that they will use and can barter with they can always use the items if the Krugmans of the world are correct.
If you do not have the money to buy gold then buy small amounts of junk silver for trade but secure food and supplies first. Remember Superstorm Sandy. That was practice for what’s coming. It doesn’t take much to empty store shelves. If it happens when you and your family are hungry then it may get miserable fast.
Like Greg says, it is better to be prepared too early then to wish you had prepared a day late.
The economy is about implode but the even more scary thing is I suspect the elites that control the government are doing it on purpose to set up a police state. I think that is why the are trying to take our guns and legalize 11-30 million illegal aliens who will burden the welfare system and drive down wages even further.
Those 11-30 million illegals will bring in an even larger number and eventually you have those who came illegally being a decisive voting bloc for ever more government programs for themselves to be paid for by what is left of the American middle class. Riots will surely ensue and those without guns will be glad to give up their rights for more security. Read JIm Corsi at WND, Infowars.com, NumbersUSA and USAWatchdog.com to learn more!
Problem is Americans have been duped all these years by msm. The US isn’t a democracy because the gov’t runs the media outlets and tells them what to say. Americans have been so stupid to believe WMD’s, nuclear weapons blah blah blah. This was all a facade to save the petrodollar. Wake up you insular minded people. Travel the world. there are other countries out there. Maybe that will help americans not to get so brainwashed by their own gov’t. The US gov’t and FED are the biggest criminals we’ve seen. Bush took all you guys for a ride and it was funny to listen and watch from the other side of the planet on how people in america believed in WMD’s.
Another great interview, Greg. It is almost surreal watching all the pieces come together in the collage of commentaries. I wonder IF the people in government actually care what happens to America in the end? I really have to think they are blinding themselves?; or are they ruining the country on purpose??? How do they think they can get away with the things they are doing??
The court of world opinion will eventually weigh-in, and take the ball off the playing field; stop the game; and go home with it. At some near point in time – it won’t matter what America was in history: only whether we are mature enough to face the music and do right. No one escapes “cause and effect.”