New Recession Closer to Depression-John Williams
By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Economist John Williams says forget about the so-called recovery, we are headed for recession. Williams contends, “They’ll have a downside revision to this 1st quarter estimate that will take it negative. What we are seeing now is that the outlook for the second quarter is not only weak, but it is also going to turn negative. Two contracting consecutive quarters of GDP give you a recession. So, we have an outlook for recession. This is an economy that I’ll contend that never recovered, and now we are in a new recession . . . in a grand economic contraction. It’s an ongoing economic downturn that we entered into way back in 2005. This is something close to a depression.”
What does this mean for the Fed interest rate policy? Williams says, “It’s not what the Fed wants. It’s not what the market wants. All the speculation about the Fed raising interest rates and returning its policies to more normal functioning, which was the basis of dollar strength since last June, that’s gone. It is going to be very difficult for the Fed to raise interest rates with the economy turning down again. You are already beginning to see some downturn in the dollar, which should be reflected in higher oil prices. That will spike inflation, and you should be seeing higher gold prices. Although they are still manipulated, they should be moving a lot higher.”
Last week, Fed Head Janet Yellen sounded the alarm on “quite high” stock prices and warned of “potential danger” in the bond market. Did Yellen make a mistake or was she sending a warning? Williams says, “I thinks she was sending out a warning. What she did was deliberate. . . . I think she wanted to be in the position that if the stock market crashes, she could say, see I was warning you. . . . I think you are going to have a crash here somewhere along the line that is going to be of a magnitude that will be remembered for decades. . . . I am still looking for a trigger of heavy selling of the dollar and a massive decline in the dollar, a panic decline in the dollar. That could be a trigger for a stock market crash. Any number of factors can do it. You are not going to have much warning when it does come. The panic moves are almost impossible to time because of their nature, but the fundamentals are there.”
On the U.S. dollar, Williams says because the Fed will not be able to raise rates in a sinking economy, the dollar will sink too. Williams explains, “That’s why you’ve seen weakness in the dollar in the last couple of weeks. As the economic outlook has dimmed, and expectations of the Fed raising rates has been pushed off into the future, which is a major factor in the unfolding dollar weakness, it’s still a lot stronger than a year ago, but the downturn in the dollar has started. . . . Unexpected economic weakness adds stress to the financial system. It also tends to widen projections on the budget deficit. It will make Treasury fundings more difficult. The Fed’s going to need to be in there monetizing debt and doing what it can do to prop up the banks. That is all bad news for the dollar. As the dollar weakens, that’s going to be inflationary. As the dollar falls, oil prices will continue to rise. Gasoline prices are going to go higher again. That’s where you are going to see early stages of inflation. As the world gets used to the Fed debasing the dollar, you will see intensified selling. Watch for a massive decline in the dollar, which will be the early roots of hyperinflation in the not-too-distant future.”
Join Greg Hunter as he goes One-on-One with John Williams of ShadowStats.com.
(There is much more in the video interview.)
After the Interview:
Williams has some free information on the home page of ShadowStats.com. He also has a subscription service. If you would like to subscribe, please click here.
Don’t worry about americans from south, we do not know geography. Worry about the Kings of the East and North.
you have no idea how many maps leave Michigan’s UP off.
We have Ronald McDonald to pelt you people with Red Rubber Noses!
Mary is this before or after we save their ass in another world war……..again? It doesn’t really matter though, it’ll be the last time. Because 42 months after this world war ends we’ll finally have gold and silver as currency when Jesus returns. Then we can rejoice that a man (King) of peace is finally running this planet instead of the war mongers George Sr. George Jr. and Jeb Bush. They’ll get a new world order alright…..just not the one they were seeking. May the 3 of them rot in hell. Prepare were only about 2 years away. I just can’t decide if this war will be 3 or 4 minutes or 3 or 4 years. Probably the latter with the final few minutes one well of a big bang felt the world over.
How much gold are you willing to wager on that ‘return’?
Dominic. Jesus will return. I WANT to say I bet my life in this world, and the life that IS after death, so I also bet my soul on it.. That is called Faith.
Jesus is Lord of all today, tomorrow, and forever so says the spirit of God.
Greg some times I get it right.LOL
Greg just wanted to let you know that people on disability will get there benefits cut as of January 1st,2016 by 21%. I have contacted my repetitive and they are not to worried about it. I have also contacted Social Security and they don’t know anything about it. But I can tell you nothing is going to be done so disability will be cut by 21%. Just another egg in the basket that will anger the people of this country.
Americans, just get ready. Our way of life is about to go down. Remember the game ‘Chutes and Ladders’? You get close to the finish and then roll the dice that lands you the big slide down to the bottom.
What do we do? First, get right with God and then second, prepare for it the best we can. You can prepare for some things, but a full scale collapse of a curreny is more difficult. Good luck to all and also happy Mothers Day.
I totally agree with you, but the real problem remains opening people’s eyes to the problem. As a prime example, yesterday my husband and I saw a TV ad with Ron Paul talking about the “US economy was going collapse”. Do you know what his ONLY comment was???? “Is that Ron Paul? My gosh he’s aged.” ……….I am hoping he’s thinking about what he said any way.
I have aged too!
Who wouldn’t when they have managed to put two and two together and worked out why the US is self-destructing?
Anyone that has an IQ above moron level and can read or draw breath should by now have come to the realization that it is the ownership model of the Fed, which is the fundamental problem behind the financial chaos in the US.
I really do feel for Ron Paul. This great man, IF he had been elected President, and IF he had not been murdered in the process, could have almost single handedly saved the American nation from certain ruin.
It must be absolutely heart wrenching for Mr Paul to see the inevitable train-wreck happening before his eyes and being absolutely powerless to prevent it. Worse than this he has to witness the lurching and utterly incompetent half-wit Obama as he tries to give the impression that he is in control and that he is trying in any way to prevent the inevitable tragedy.
Oh no you guys…. you are wrong. The economy is just booming, theres no economic downturn/recession/depression. Take new cars for instance, they are just selling selling like hotcakes and every dealer car salesman is like a gazillionaire…
Check out these images of a CAR PURGATORY. Inventory that won’t sell… why? because people can’t afford to buy new cars when they are unemployed or under-employed or on food stamps. We are looking at tens of thousants of cars here and in Europe that are not waiting to be shipped to a dealer were shipped back or not needed and are now waiting to be scrapped as far as I know. Or maybe given to China?
Pictures tell a thousand words and tens of thousands of unsold new cars tell the story the MSM doesn’t want to tell about their fabricated economic recovery. Check out these 17 photos….
Rich M I saw some cars missing… We must be in recovery!
” $100 buys this car. Lost everything on stock marked” sign held by guy from depression era photo comes to mind. Is there an offer they can not refuse?
Maybe they are keeping these cars around because if they run out of those cheap coffins that can stack 4 dead in them, they can start stacking 8 dead bodies in these cars and use them as coffins. Sorry morbit joke but the mafia used to do it all the time.
Rich. I am prepping to make it to the guillotine. LOL Great post . I really enjoyed it.
Greg: Usually you hit all the nails on the head but why didn’t you ask John Williams about what Martin Armstrong and others say, that everyone from around the world will be flocking into the dollar (flight to safety) and therefore the dollar is going to go up not down?
That is what is happening right now, John. a perceived flight to safety and a general unwinding. Mr Williams, I believe, is indicating that the perception will soon change and that the dollar has peaked in value.
The euro is in a crisis and the forecaster has forecasted a major downturn in value due to the overwhelming debt and loss in confidence…international capital will flock to usd.
Even Jim Willie states the dollar will rise, because of its percieved safety.
he says it will be like a corpse at the bottom of the river “gassing” up and floating to the top.
All based on “fart gas”
what does he mean by ‘a massive sell off of the dollar? who sells the dollar, corp, th people, the fed, other govmnts, how do they sell it off, what do” they” get in return when they sell off the dollar. I don’t get it. use simple terms pls
im on j c davis computer btw
al ols, the dollar is bought and sold every day on the Forex market, as are most other currencies. so, the trade is always one currency vs. another. one might use use dollars to buy rubles, and its value would be charted as USDRUB
sorry, that notation is backwards. if one buys ruble with dollars the symbol would be RUBUSD. so, in essence one would be using (or selling) dollars to buy ruble.
but this seems incorrect. example, if there is a big sell off of dollars for other monies, why would Russia sell rubles for dollars when they are selling dollars to get out of them, or yen, or yuan, rupees, etc. the sell off of the dollar would include ALL countries i would think, wouldn’t u say. seems countries would dump dollars for land, water rights, ie “BUSHIES” IN PARAGUAY, buying land and water rights.
Check out this clip of President Obama’s speech at Nike Headquarters on 05/08/15. He accidently let the truth slip out about China. Oops !
Obama … “When the rules are fair we win every time” …
So who made the rules to ship millions of high paying American jobs to China? … China didn’t make those rules … American companies did!
We can’t be any worse off letting China make the rules … in fact we may be better off for it … because China will put the American companies that sold out and betrayed us American workers … out of business!
jerry, and look at the faces of the people in the background, loosers.
Obama knows what needs to be done but has no idea how to accomplish it.
That is because we are more concerned with who wins American Idol.
Ugly. YOU ARE WRONG ! uninflated footballs is the number one problem. Gotcha.
How true. I’m wrong again.
accidentally? Does not sound like it was accidental.
I was just using the ruble as an example of a Forex trade, nothing more.
Tom I think you gave a good analogy of a sell of. The way I put it is the Yuan now is 16 to 1 dollar. In a sell off the world would dump the dollar too the point of 16 dollars to buy 1 Yuan. All of the billions of 100.00 dollar bills will come back to the USA. Creating HYPER HYPER inflation. It will not last long till Anarchy. At the most 6 months. So no one will profit from a collapse. Even gold holders will not . A sell off of the dollar is nothing less then people world wide realizing its true value.= Toilet paper. The world will still want the easy life of Fait currency so China and other countries will accommodate the masses. Sorry to cut this shot. My dog smells a skunk.
Rich, and SIG. False alarm.. Just pot smokers in a hotel behind me. There are more 100 dollar bills overseas that will look for a place to land. The USA will get ALL the ( paper) money it created to be the world currency.. Coming back to the USA. Hyper inflation is not a myth it is the future. Mix in a EMP bomb and folks will not know what there valuables / property is worth. The world will seize the moment to unload there worthless currency called the dollar. Either way we should learn survival in the wild. I say google wild weeds. Storage water ect…
Good question al oils……I would like to know too.
I don’t get it (a dollar sell off) either.
The miracle of fiat is that it is worth what one believes it to be!
Maybe in the beginning some instruments can be liquidated to buy assets (physical)
A little later, a little more worthless, etc.
So maybe the dollar sell off won’t have as much of an effect on the issuer as the eventual lack of market for such a …….pos….if all fiat becomes known for what it is…..
Maybe the FRN will be replaced by a more obvious Corporation Dollar, which will be legal tender…..at all stores and franchises owned by the Corporation….sort of like Company Scrip and Company Towns on a massive scale???? Maybe no more grocery stores, just WallowMart and McDonalds. Maybe better to be hit by a rather large Asteroid!!!!
The Dollar is nothing more than an IOU issued from a Bankrupt Institution which purports to represent a Country …..where in actuality… the country is nothing more than a Corporation. The US LLC ……is a flat out broken entity which is sucking the life out of the 318MLN people that inhabit the country.
The question is Allen …why would you want to hold FRN’s in the first place ? You are only supporting the Elite and financing their game. To consider this in the context of the Globe…look no further than those that lead the way…out of the dollar.
Boycott what they sell (paper) and by silver!
Sure. And then pay your mortgage and food with those same coins. A 1063 quarter and a 1968 quarter are quarters at 25 cent value. Remember, silver is just a hedge and a storage of wealth. You are hedging that silver will be worth more later than now. But if the dollar inflates, then what currency do you cash it in as?
Ugly. what value is silver if it is no longer priced in dollars?
sig i understand all u said already but i was wondering HOW the big dollar sell off would occur. tom says through the forex but if countries are selling off dollars why get mor on a forex exchange?
How the selloff occurs is not known in absolute terms….the expectation for it is though. To consider the plausible avenues for an mass exodus one would rightly perceive an ALTERNATIVE. Is that alternative another FIAT currency, a digital currency, a Gold Trade Certificate or Bond ? I honestly don’t know… perhaps all of the above.
One could envisage a scramble for HARD assets at exactly the wrong/inappropriate time. That might include Infrastructure, Land, Ag Assets, PM’s , Mining rights etc. etc.
When you ask who would sell the Dollar in such an event consider who are the holders (in volume and value) and what reason they would have to sell them. I am sure you are aware that foreign central banks have large parcels of their Reserves held in USD’s. Some also hold UST/ USGB….consider China/Russia/Japan (2.5 TLN worth). These debt instruments are considered to be currency too. The FOREX market , the Bond Market traded via the global financial system (owned by the Banksters) are the avenues for selling USD and any currency for that matter. Any SELL volume in that market (because it is live) triggers all sorts of alarms to the point of crashing the system. An order to sell …without appropriate volume on the buy side….would see a vacuum ….and the dollar would seem like it could go virtually no bid. Keep in mind that the USD is just a tradeable instrument…..to be bought and sold freely. Because of its reserve status there are very deep pools of demand and supply globally. There would need to be a joint effort by sovereign players to uproot the Dollar…in order to crash it. An outright declaration of Bankruptcy or Default on Debt by the US would do the trick. 😉
sig, i get it, tks al oils
Specifically, private institutions or governments would sell off their dollar causing a massive decline in the value or a trigger event like the collapse of Saudi Arabia and the end of the Petro Dollar, something that artificially creates demand for the dollar.
Greg, your guest has it figured out, the Fed is out of bullets although it did prop the dollar but that now may well be toast. Once the Fed is out of ammo & the markets or whats left of them figure it out, Mr. Williams predictions become reality; a hyper-inflationary economy. What he didn’t say is what happens then or next, let me guess, price controls, rations, black market & black market laws, austerity & austerity rumors, riots & thugs about like Baltimore, such a peaceful city, Wall Street & CNBC now having to capitulate to reality, then, of course, for the elite to keep control, MARITAL LAW! P.S. elections are suspended; for the sake of the country that is.
It won’t be hyperinflation. It may be inflation for about 6 months followed by a collapse. Who can afford a $120,000 F-150 in near future. Well no one. Therefore inflation, then collapse.
I have posted this before, but it is worth reading again. Look closely.
The Financial Stability Board, accidently spilled the beans about their intentions with the dollar in this recent letter to the G20. The dollar is going to loose reserve currency status sometime before the Basel meeting in November. When that happens all of the countries who are holding dollars now will “sell them off” to buy new currencies backed by the Chinese. The Bretton Woods system that was created following WWII is coming to an end.
The dollar will still retain reserve currency status … it just won’t be the big bully anymore and will have to share power with others …
What is even more interesting in your attachment is this statement: [ “agreement that will prevent cross-border derivative contracts from being terminated disruptively in the event of a globally systemic bank entering resolution”. ] Which seems to suggest that any derivatives failure will not be allowed to cause an implosion of the system … they made an agreement to prevent “any disruption” in the derivatives market !
You are correct. In the absence of the U.S. getting nuked, the dollar will still be a reserve currency for the foreseeable future. And you are correct with what you said about derivatives. Rules such as derivative stays have been in place since last year.
You’re not paying attention!
At least I present some facts. How about you ?
What the hell are you talking about? You are presenting facts and I am not? Did you not see the link I provided that contained facts about derivative stays? Please also note I said the dollar will continue to be “a” reserve currency, not “the” reserve currency. I honestly believe that the dollar is not going to just disappear unless the U.S. disappears. Just agreeing with what Paul said.
Macro Chart gives you another view of reality.
Do you really think that the world works this way?
That is to say, that the world reacts this way?
I guess if you’re a government troll you wouldn’t think so. Post something meaningful. I’m getting tired of your dribble.
Tell me Jerry, what is the secret to making money?
cls – It behooves (definition behoove: to be necessary, fit, or proper) you to answer your own questions! In an answer lies the depth of one’s cogitative thinking. (Definition cogitation – A serious thought; a carefully considered consideration). Let us see your depth or lack there of. Otherwise I agree with Greg H.
Love to Jerry from Tennessee.
Greg please stop this agitation. ClS is a cleaning solution not a real person.
Please point me to the page and paragraph in this document where you say that the FSB supposedly accidentally spilled the beans about their intentions with the dollar.
Head line. “Post Crisis Agenda” .
Jmiller, what do you think “Post Crisis” means? They’re not talking about 2008. They’re talking about the crash that will come after the dollar loses reserve currency status in the October IMF meeting. Why else do think every country in the world is signing agreements with the AIIB? They know its coming. The United States doesn’t have the votes to stop it.
I enjoy your posts, but I agree with Rick Ackerman on this one. These are a bunch of bureaucrats trying to be important or be noticed. And that they could not qualify for a CETA position is true. Think of an inner city council meeting or school board.
Having worked with these types on a few occasions I can affirmly tell they that they are completely incompetent and all they touch turns to sh#t.
And that they are not any where close to having any ducks in a row.
How about the title? “Post crisis agenda”. For a meeting to be held in November. What do you want me to, do draw you picture? Do you even know who the Financial Security Board is? Or who the board members are? Enlighten me!
Of course I know who the FSB is. I have been to their website and read who they are and what they do as well as websites that talk about the FSB.
As a follow-up post to the link I have posted about the FSB letter I have the following questions.
1. Why has there been a sudden rush to the AIIB the last few months by our allies?
2. Why is the IMF pulling out all the stops to prevent a Greek default on EU debt?
3. Why would the FSB title the letter to the G20 ” Post Crisis Agenda” for a meeting that is supposed to take place in November?
4. Why does the government have a training exercise that runs from July 15th to September 15th, that covers more than 30 states (we are finding out)?
5. Why did Congress remove the debt ceiling if we’re running a negative GDP?
6. Why is the money velocity chart hitting zero?
Just asking. If you have a better explanation, I would like to hear it.
Question 1. Why has there been a sudden rush to the AIIB the last few months by our allies?
Answer: For the same reason that there is a sudden rush on April 15th at tax time. There was a deadline to meet if you wanted to be a founding member of the AIIB. If they was no deadline then some of these countries would not have been, in a what appears to some, to be a rush to join.
Question 2. Why is the IMF pulling out all the stops to prevent a Greek default on EU debt?
Answer: Why wouldn’t they?
Question 3. Why would the FSB title the letter to the G20 ” Post Crisis Agenda” for a meeting that is supposed to take place in November?
Answer : It says “Finishing the Post-Crisis Agenda”. Finishing means that something has already started, meaning the post-crisis. It is talking about a crisis that has already happened. The first paragraph states, “the progress we have made in completing measures to fix the fault lines that caused the crisis”. It is in the past tense. There is no mention of the dollar at all in this document. You are reading too much into this document and formulating conclusions that are not really supported.
Don’t let the facts get in the way of your bloated optimism. Check out the timetable for the IMF decision for RMB drawing rights. NOVEMBER!
Its people like you that still believe O.J. Simpson is out looking for Nicole Browns murderer. 🙂
Well since you are have now resorted to hurling insults I see no reason to contmue.
Jerry and all WD’s,
Did you ever consider why the US is being singled out as the Nation to be taken down…”intentionally collapsed”.
Not entirely what you think. It is more than just the Dollar being the world’s reserve currency.
Response: What is the largest “democratic” country on the face of the globe?… One that still has States that have independence from the Federal Government (inconsistent).
Which country’s citizens would legitimately pose a threat to a one world government?
Which country’s citizens could pose a threat to the power elite and their war machine in the event of economic collapse, social decay and uprising ?
Which country’s citizens have the highest rate of possession of guns per capita ?
Why the country’s political class and power brokers are doing everything in their power to destroy the fabric of the monetary system.
Which country’s armed forces are preparing to slaughter up to 50MLN people for non-compliance, non-conformity?
Why is Jade Helm only specific to the US /Nth America?
Congress will be impotent, as it is the CIC that will control the Armed Forces (under Executive Order). Congress will therefore not represent the people as it is mandated to.
The dots are all being connected.
Dictatorship / Totalitarianism / Depopulation by armed aggression are on the horizon. Make no mistake.
Greg. Thank you for having someone on with facts a numbers to back them up. One of two things will happen . 1 we go to war and the dollar collapse happens over night. Or 2 we start printing, dumping into the hands of the people to pay off the peoples debt before admitting collapse of the dollar. Thereby sticking the rest of the world with bankruptcy. Not likely, so most possible. The last thing they want is a mad redneck with guns.
I did not notice Allen did not take his name off. Sorry
I wish I had an awesome neighbor like you, JC!
Anne. Come on in. Take your shoes off. Sit a spell. Yall come back now ya here.
Wouldnt that be nice!!
Good interview. Shadowstats will eventually be correct but right now all the other central banks seem to be playing along. Heck, China just lowered their interest rates again in the last 24 hours. As long as they all continue to sing the same tune I think this game of musical chairs can continue for a bit longer. So doubt there will be a massive sell off in the dollar in the immediate future because countries like China, Europe, UK, Australia and the rest of the band will print and buy the dollar if required in order to save the system another year or two. However, if they didn’t then I believe Shadowstats prediction would take hold shortly but doubt that will be the case.
When you see various leaders from around the world standing with Putin on Red Square you have to ask, who is still standing with us?
It should be crystal clear by now, that the United States has lost world leadership status and that we are being isolated, economically, politically, and militarily.
It is disgraceful, childish and insulting to Russia and their millions of casualties in WW2 that the US was not represented at this celebration. Even more astonishing is the fact that the US tried to intimidate other eastern European countries that were liberated by Russia into boycotting this important event as well.
Quite simply the US continues to behave in a monumentally childish and selfish way. The moronic David Cameron that the British have just re-elected has been equally insulting to Russia…no surprise here.
The UK election is no different to the Scottish one. There is absolutely zero genuine democratic process. This is all going to plan. TPTB are electing their own and keeping them there to ensure continuity of the Agenda.
All those in favour ????? ….the I’s have it. Meeting closed. 😉
SIG We gota meet some day. Seldom do I get shocked. What is your name..?
Greg has my email.
Send me a note.
Many factors appear to be in a gathering confluence of events to support the technical analysis provided by Mr. Williams. No doubt many expected this scenario last year however as was evident, the dollar gained strength to support a continuation of debt and spending. In the current expectation of experiencing two consecutive quarters of negative GDP, Mr. Williams anticipates a lowering into the negative of the first quarter GDP and anticipates a negative result for the second quarter. In order to confirm the expectation of rising inflation devolving into hyperinflation one would by necessity closely monitor the price of oil and gasoline and the value of the dollar to confirm this hyperinflationary scenario. I thank you Greg for having Mr. Williams provide us all with solid information, with this timely interview there is still time to complete multi year preparations. My sincere appreciation to USA Watchdog for having Mr. Williams on with his prescient analysis.
Mr. Williams comments mirror what happened in Japan in the 90s and first decade of this millenium. Comments like “the economy never recovered, it has remained in a recession” and “they won’t be able to raise rates”. Over the past 20 years, Japan had numerous fits and starts. You’d get months of down data and then one or two months of positive data and then the media saying “the recession is over, etc, etc. ” Of course the recession was never over and just kept going on. The govt issued numerous supplementary budgets to “patch things up”- but to no avail. So now the US is in the same situation. Fast forward to today, How does Japan plan to get out of this 20 year recession. Weaken the yen, print to the moon, establish an inflation rate of two percent- etc. IF the US is in a similar boat, and if we say that the recession starteed on 08/09 (even 07) then 20 years out would put us past 2025- and still in recession in the US. Then, to get out, they (the US govt/the FED/ whoever) step on the financial gas. If things were to play out this way, then the REAL stateside QE hasn’t even happened yet.Who know what the inflation rate will be at that point!? And then what of the price of gold. Hell, never mind gold, how about the price of bread, milk, school, utils!?
Fan – How are food prices in Japan? A few years ago (maybe 2010???) I used to be able to buy canned veggies here in the US at the grocery (when on sale) for 4 for a dollar. In just a few short years, now I can’t buy them on sale for less than 79 cents a piece, and some are regularly over a dollar. If people aren’t a “prepper” by nature, they are sure to become one by just seeing how badly the food prices are increasing!
Food prices are up a bit^ dairy for example (maybe 15 percent). Other stuff is just shrinking. I have a school and we give kids a cookie snack. Used to be that one cookie was enough for the little ones. Now they look and the size of the cookie and say, “I want 2”. So its double inflation for me as I pay the same for smaller cookies but now have to buy twice as many to keep the kids happy.
Fan in Japan, yea, as we watched for 20 years the “Japan Economic Stagflation” model, it occurred many times to me that we are doing the same thing, playing the same game, regulating the economic model exactly like are friends in the Japan, basically anything but deal with the real issue of debt; too much! I totally agree with your instinct that we can look forward to years of a present Japan type economy, in fact, we are there already. Always enjoy your astute comments, best to you and yours ab
Thanks. Coming from the US being raised unknowingly ethnocentric, I always thought America was “ahead” of Japan. Now it is bizarre to see that in this economic frame Japan is ahead of the US and so we (here in Japan) don’t have to look to the US to see what is going to happen to the markets, the US needs to look at Japan. And here it ends/continues with the govt intentionally weakening the yen and targeting inflation- at 2 percent purchasing power will be wiped out in 30 years. That’s if they can keep it at 2 percent.
The US knows the Economy is in serious trouble, which is why we are perpetuating wars in the middle east and destabilizing the entire region. This was all planned long ago to some degree in my opinion, but its now just getting out of control.
History of mankind… there will always be wars. Innocent people will always suffer at the hands of their corrupt governments. Wars are never about Religion, but about greed/resources or about women. Just look at history. Where I come from, Muslims, Jews and Christians get along great. And every time we see the news, we look at each other and recognize these are isolated incidents of hate which are backed by some government group to perpetuate division of people based on faith.
Greg and All,
Must watch interview with Harvey Organ https://www.youtube.com/watch?v=4gJy0AjkgR0 may 3 2015 with silver doctors . I can never express my gratitude for you, your website and contributors. It has educated me and I try and educate others now, but feel like I lead a double life at time. Continuing to prepare at the same time going to work and watching all the zombified people act as if all is good. Keep up the excellent work with the variety of guest. I encourage all to contribute financially to gregs website as I did today!!! Don’t take it for granted. I WOULD LIKE TO PERSONALLY THANK ALL GUESTS THAT POST (and the tips/links) TO THIS SITE !!!!!! It exponentially stimulates and educates the mind and more people. Thanks to all again!!
OMG!! Will H I feel exactly the same way. living a double life is how I feel. Trying to explain how things are to my wife is useless. I work at a HBCU. when I tell people how bad the President it, its like I committed a crime. I feel like i’m the only black person that see what is truly going on. I actually had a coworker tell me that we need more government in our lives, blew by mind. I’ve been storing food and silver for the past three years and my wife found out last year that I was doing this (double life for me). Before I got out the army in 1999, I took a three weeks survival class, I feel like I am better prepare for what is coming down the road. Preparing for what is coming never stop for me, now that I have a child starting college in the fall, I will have to prepare a exit plain to get her form college to home.
At this point it doesn’t really matter anymore. Sounds like you are doing well. Your wife, family, and friends will thank you later. What else can a person do in the land of sleep?
I’m not sure every city will be that harshly effected. Some cities in the US are perfectly situated for the future and others clearly not.
Take for example Seattle vs Baltimore. Seattle is built on tech, is the closest city in the US (via flight) to Japan and China, and has shown incredible resilience in the face of economic pressures.
Baltimore on the other hand is severely unprepared with its economy build on colleges (which are built on a bubble about to implode) and hospitals (Hopkins) that no one can afford. Oh and Under Armor which is hardly something to call a economic driver. Property prices are severely depressed even in these inflationary times and taxes their reflect a corrupt government.
My point is this, it’s time for us all to take a good hard look at where we live, and vote with our feet if we want to survive what’s coming. We need to look harshly at our local economies, governments, and environments (water depletion), and evaluate if it’s economically and safe to stay in the cities we currently live in.
You might look around at your house and neighborhood and come to the conclusion that it’s safe, but how many years do you think it will stay that way if the US (global) economy were to sink into a black hole? The only way to prepare is to move to a city that could escape a dark situation the fastest.
Unfortunately, every Progressive city with a large minority population is doomed. These cities will have it the toughest, and may never recover. Places like Baltimore are quicksand and if you live in a town/city like this it would be best to leave as quickly as you can.
Traveler, my feet are voting”exit stage left”, I’m sure many others are thinking its time to bail out of all those great American liberal cities of peace, their social experiment having been judged and found wanting.
Yes Traveler, we did exactly that and ‘voted with our feet’. Sometimes if you can’t change your situation, you have to change your situation.
You are right that population density is one of the key factors one must take into consideration. We put our faith in James Wesley Rawles and his priceless information and recommendations here and never regretted it: http://survivalblog.com/retreatareas/
I love Rawles’ books. Great info. Also read One Second After by William R. Forstchen, about the world after an EM pulse hits the U.S.; everything goes back to pre-industrial days in just a few weeks. Also read S.M. Sterling, Dies the Fire. Great books of post-apocalyptic survival. Ever watch the Walking Dead? I feel like some of my friends, neighbors, co-workers are the walking dead-zombies because they are clueless as to what is going to happen. Try to tell them and they look at you like you are crazy. The survivors in The Walking Dead, the main characters in that TV show, know to stay away from the big city, too full of zombies. Go where there is less population-and less people to fight for resources and less zombies to attack you. Don’t think the people in your town would turn into crazies? Try escaping under these conditions: “An estimated 2.5 – 3.7 million people fled prior to Hurricane Rita’s landfall, making it the largest evacuation in United States’ history.”
What a mess: http://cms.ukintpress.com/UserFiles/I-45-Hurricane-Rita-Evacuation.jpg
I am doing similar things as well Mike MM. I did after a long battle get my wife to go along with the program. It was a “baby steps” process. While I may have ample supplies of food, water, ammo, and some silver, what worries me is being over run by my meth head neighbors here in rural Calif. Getting enough rational people together on the same page is not easy in the country. We just live too far apart. So my comment to Traveler is we too will have our hands full in the country with hoards of well armed white trash, high and drunk on whatever they can steal. Farmer Dave
Mr Williams has been most intelligent people’s source of info for years now. But the market has zoomed, the dollar has zoomed and Mr Williams looks wrong.
But he isn’t wrong. It’s the crime bosses that have covered up ‘reality’ by printing and throwing money at stocks and bonds via the Banksters whom the Fed gives free printed fiat.
A Ponzi of magnificent criminality is ongoing.
The Godfather movie nailed american values.
Greg … Williams is on the right track … but expects “a dollar crash” … I don’t think that will happen … the way I see it … the Fed will use the current economic weakness to justify the announcement of QE4 … which will be inflationary … so the stock market will continue to rise … oil prices, food prices, etc. will also rise … monetary inflation is always negative for the US dollar (but the Fed will not allow the dollar to crash) it will manage any dollar weakness with incremental rises in interest rates … rising interest rates is the way the Fed will keep the dollar relatively stable as they “monetize and inflate the currency” to create a boom … so I expect interest rates will rise as the dollar weakens to strengthen it a bit … when we see interest rates begin to rise “you can be sure” that the Fed is printing money like crazy out of thin air and monetizing it … all this talk that the Fed can’t raise rates is nonsense to me because the Fed “will definitely need to raise rates” as they begin their inflationary money expansion in order to keep the US dollar relatively stable … they will use rising rates “to guide the dollar down on a more gentle downward slope” … they don’t want a fast dollar crash … toward … its eventual oblivion!
So in summary … once we see QE4 announced to “counter the coming recession” inflation will begin in earnest … the stock market will rise, oil prices will rise … and interest rates “will be raised incrementally” to manage the fall in the dollar “so it won’t collapse quickly” … and of course gold, silver, commodities, etc. will all begin new bull markets … that will drive their prices to higher highs “in spite of rising interest rates” that are incrementally increased to keep the dollar from crashing too rapidly!
I forgot to add “that the money needed” to create an equities boom and a gold, silver and commodities boom will come out of the bond market (as rates are incrementally raised to strengthen the dollar just enough to allow it to fall gradually) … the Fed will inflate and monetize the debt with QE4 but won’t allow “a fast” dollar crash!
The Fed are experts at bringing the dollar down “gradually” … from 1913 when the Fed was created the one dollar bill has been brought down to about 3 cents … did the dollar crash? … yes … they just don’t allow it to crash “all at once” the way Williams is saying it will happen … the legal foundation upon which the Fed’s power is derived from the politicians is to maintain “stability” … to both the currency and other markets!
Williams is right about the dollar crashing … but it will be a long drawn out process … the same way that that dollar saved by our grandparents is now only worth 3 cents!
Dismantling John Williams’ Hyperinflation Predictions;
In 2008, Cassandra Williams said we would see Hyperinflation in 2010…
From Shadowstats ion 2008;
HYPERINFLATION SPECIAL REPORT
Issue Number 41
April 8, 2008
Inflationary Recession Is in Place
Banking Solvency Crisis Has Opened First Phase of Monetary Inflation
Hyperinflationary Depression Remains Likely As Early As 2010
Thanks Greg, Mr. Williams has held a hyperinflation forecast for the last 2 or 3 years now, if I remember properly. I believe he’s a strait shooter, and we can count on his stats, and I’m sure he will eventually be right on hyperinflation, but the majority of money creation has been kept from the m2 money supply an held on bank balance sheets. Much has gone to by bad assets, so the banks can meet asset requirements. Though I’m not an economist, I have watched the money velocity, and it shows money circulation has been collapsing. So the real economy is collapsing or imploding little by little. The fed may do a QE, as a last resort that is circulated through the m2, and if it does hyperinflation may be the result. Since this has always been a wealth transfer game to the top, if we do see QE hit the masses, it will probably be the last, before the dollar drops out of site, from lack of confidence. That’s when will know, something big is fixing to happen. You did another great job my friend. And I have to say again, love the no-fear endings. I’ve got a document on a PDF file out of IMF showing their plans, but couldn’t figure out how to copy it to the comment, for the people to read.
Greg, IMHO the die is now cast and there isn’t anything that anyone can
do to change what is coming unless some fools lead the world into a war
which no side can win. I feel fortunate to live in the great white north of
Regarding Janet Yellen’s slip of the tongue by speaking the truth, in 2010 Labour’s outgoing Secretary to the Treasury Liam Byrne wrote to his successor ‘Dear Chief Secretary, I’m afraid to tell you there is no money. Kind Regards and good luck’!
Mr Byrne tried to make out ‘my letter was a joke’, but post our Election last Thursday admitted that he’d been kicking himself ever since. Naturally PM David Cameron took full advantage of this ‘item’ of the truth.
I agree with a lot of JW has to say.
The US is in a Depression not a Recession.
Consider the GDP …”Official” numbers vs reality.
Keep in mind that Defense spending makes up about 10% (+ -) of the GDP. How much of that spend is “Domestically” related and how much is WAR related. Ever increasing spend on Weapons …..Transport…..Human resources…..serves what purpose …other than to allow the Military Industrial complex to expand. Strip out the % of Defense related to non-domestic spend and exclude the non-traditional GDP related to drug trafficking and prostitution …GDP is working backwards at a rapid rate of knots.
Want another example of the Depression….JW elaborates and defines unemployment levels very well.
The point on Janet Yellen….and what FED Chairperson should or shouldn’t say…..We should not forget that Mark Carney – presenting his paper and views of the BIS (Central Bank of the Central Bankers – Janet’s Boss) at the last G20 meeting….said almost the same thing. This repetition by Elite powerbrokers should be considered a ***WARNING***.
I like the phrase that MC used…something along the lines of “Liquidity Illusion”…..implying that the CB’s will not be there the next time markets (and all the players) require protection. This then alludes to the fact that CB’s will not do the expected QE and in fact the Bankers will do the unthinkable and enforce “BAIL IN” proceedings. A lot of very smart people have not got their respective heads around that point.
To be clear …..it is a “solvency event” ….that will trigger the next collapse….even though it feels like the collapse has already begun….and in some regards it already has. Also its worth mentioning again that interest rate setting by the FED is not a big an issue as is the Yield on the 10YR Bond. Any idea about the move on the TNX over the last few weeks ? Worth watching this space. Yields rising implies a selling event.
Greg, J. Williams is one of my favorites on your site, many others “pussy foot” around a little but say mostly the same thing; that is, things are going south in a hurry. Mr. Williams can predict the future economic model but not its exact timing because that is too much multitasking with gazillions of variables, beyond any persons ability. Many economic indicators out this week and I’ll bet most of them will side with Mr. Williams that we are slipping back into a “technical” recession. Why is that important? Because the main street media, CNBC & such, cannot refute their own rules of what a recession is, (2 quarters of negative growth) so they must report it as such and stop finding a buy signal in every tick up. At that point the sell off commences in earnest, both in securities & the dollar, because now the truth of the false recovery shines bright and illuminates their facade.
The ONLY reason the Fed is talking about raising rates is to protect the dollar and the T-Bond market. Pay close attention to the foreign holdings of US Treasury bond report that comes out each month . In February China Japan and some European countries dropped about $50 B of Treasuries. Higher rates are needed to bring back T bond demand
You may be onto the next fix.
I keep trying to figure out why people keep saying “interest rates can never be raised” … I figured it out … they are actually assuming we won’t have QE4 … that is … they have it in their mind that in a “sinking economy” you can’t raise rates … which is correct … but the Fed will raise rates … in a booming economy generated by massive QE4 money printing (yes it will be inflationary) and money will leave the bond market and move into equities and precious metals … the dollar will begin to fall (and interest rates will then be ratcheted up by the Fed incrementally to keep the dollars fall gradual) … as rates rise … “even more” money will come out of the bond market … will this money be held in depreciating cash? … No! … that cash will move into equities and precious metals … creating a completely “Fed manufactured” inflationary boom!
Then instead of all new jobs going to those 55 and over … perhaps jobs will begin to open up for all those out of work kids rioting in the streets and for the college educated kids living at home with their parents … struggling to pay off their exorbitantly high student loans working part time at McDonald’s!
When jobs begin to open up … American college educated kids should make a point and only work for foreign companies … make it pay back time for the American companies that abandoned American workers … by now ostracizing them … the way they screwed us … use your talents to make foreign companies “who come here to give us jobs” stronger … and let the US companies that moved out of America flounder without skilled workers … the way they made us US workers flounder without a decent paying job to support our families when they left us high and dry years ago! … What goes around comes around!
The current economic turmoil is not cyclical, it’s structural. It started out as cyclical in 2008 as the market attempted to wash out the excessively high leverage in the credit sector. This was prevented from happening by the structure of the central bank system.
The cycle was interrupted and changed to a structural failure. More than 50% of global government bonds have a rate below 1% and $5.3 trillion of government bonds now have (-1%) negative yields. This is far from “normal”, as is the current movement to abolish actual physical “cash” fiat.
The recent hyper-strength in the USD is but another sign of a coming revaluation of fiat currencies and physical assets, such as oil, gold /silver bullion. There has been only one other time that the USD has increased in value by so much, in such a short time period. That was in 2008 just before the initial crash, leading to this ongoing depression.
“You can ignore reality, but you cannot ignore the consequences of ignoring reality”.
– Ayn Rand
John Williams has my deepest regards but their is a point that I diverge from him. When he says that when the banksters had to do everything in their power to keep the system from crashing including the printing of trillions of dollars was necessary and prudent for survival while controlling every market in site and especially the gold price, I take it very personally when they seek to deprive me of my rights(own gold) that exist in a normal and open free market. All the while they are making hughe profits shorting the gold markets with naked shorts.
As the saying goes, the numbers don’t lie, and nobody “does” the numbers like the one and only “Dr. Numbers” himself, John Williams. The scam can’t go on forever, and so it won’t. Two quarters of contracting GDP with increase in gas prices could light the fuse to the dynamite just as it did in summer 2008. Prepare for the worst while hoping for the best. And bring the car home FULL every night. Best always. PM
You know, by this time, after watching all this going on I have got to say that the “market” is not going to crash at all simply because there is no market to crash. What is going to happen is just a continuation of what has been happening for a good many years now. We are going to see our standard of living slip, our liberties erode and the basis for any dignity we might have sink into the sallow mire of our collective inability to lift so much as a finger against the total and unabridged mayhem and heinous acts being committed at the highest levels of our civilization right in front of our faces. These changes will continue to unfold in inches rather than miles and we as a nation will continue to believe that things will turn out just fine so long as we continue to do whatever it is we do to keep those show tunes a whistlin’ as we trudge through the graveyard; our every worrisome and labored foot fall taking us just a little closer to the utter disgrace of being unceremoniously dumped into a pit to pay out our last gasps in anonymity. If my saying that seems a bit heavy handed, think again; its a scenario that plays out more often than not in the any part of the world during any part of history where tyrants rule. And make no mistake, we are watching the rise of tyranny right here and right now.
Brian, you are right, its planned that way, the frog in the pan so-to-speak, and if all goes well for the elite your annalist will be correct – but, humans have a way of pushing envelopes & Americans or whats left of the middle class may, just may, stand up at some point and all bets are off; however, knowing the apathetic talk and no action middle class as well a I do its a small chance but possible nevertheless. Enjoy your posts. ab
VERY depressing, ESPECIALLY because I agree with your scenario!
Greg, please allow a “shout-out” to Ozark Jerry, who a couple of topics ago posted the most recent “money velocity” chart out of the St. Louis FED, a chart that completely, succinctly, and sadly captures our current distress. QE enriched the elites, propped up Wall Street and the corrupt banks, and impoverished everyone else. But, as Jerry points out, we will be the ones to bear the brunt of this moral perversity. Focus on the basics now (food, clothing, shelter). Remember how we got here: we can’t put things on autopilot and trust “government”. It’s up to us, everywhere and all the time. Best always. PM
What is real……
What is fiat…..
What is amazing….Fiat can still buy Real…
How long before fiat no longer buys real…..
Get out of debt and get stacking and prepared for tough times like you cannot imagine.
Those might just be wise words that will help us all in the future.
Jolly good show Greg. He is arguably the best statistician in America.
The use of the word “recovery” by the media is laughable. If a patient were in the hospital “recovering” for 7 years, would we use that word? Perhaps “coma” is more appropriate.
John Williams always provides a thoughtful and extremely well analyzed view of the US economy and the dollar. While we agree that Q1 and Q2 GDP growth will be negative and the US economic revival never occurred — the question is regarding the massive fall of the dollar that is envisioned in short order. What is the dollar going to fall against and why – e.g., the European economy is poor, Japan is a disaster, and Gold is routinely manipulated down. While John is technically right — it just appears that the Central Banks could sufficiently control the situation such that a dollar fall is averted for a while longer. A dollar crash is not in the interest of many of the mature markets today, including China at this point. Would welcome his views.
More preparation for martial law. Microwave crowd disperser. Watch the end of the clip to see how its used.
My first take was it looked like a satellite communications dish, until they turned it around and used it on mock crowd. This is Twilight Zone stuff. But hey, if they can spray us with aluminum oxide without impunity, who’s to say they won’t fry our ass to?
You know … anyone with a cell phone … is microwaving (cooking) their brain right now … the reason people don’t drop these phones and run away … is because the brain does not feel pain! … it wouldn’t surprise me if the NSA has already ordered cell phone manufactures to put microwave “boosters” in all their phones so the NSA can call up anyone they don’t like … and using a special code “turn on a microwave zapper” and fry the brain of anyone they want to get rid of.
Might be a good idea not to allow unknown callers to get through on your phone unless they provide ID first … of course the NSA can get around that … as there could be an “explosive charge” imbedded in all cell phones just in case the NSA wants to simply blow the head off a presumed terrorist!
That’s a good one Paul.
Greg, I love all your guests as they are so informative. I came across this video yesterday of a high ranking retired army ranger where he gives a presentation at a church on what is going to happen in the US. All I can say is WOW and he confirms at the end about what happened on 9/11. I can’t believe this video hasn’t gone viral………
You know … if you do a Google map search … there is a lot of construction going on in our country … that should be making the economy boom … yet we are close to recession even with all the fiat dollars being spent (by someone) to do all this (necessary) construction!
Sorry about that … interesting but wrong site … here is the Google map search I wanted to post …
Now take it one step further … how do we fill up these camps?
Some may say Jade Helm is just going to pick up ISIS terrorists … how many of these ISIS guys were let over our border? … with the multi-millions of dollars spent on all these camps you don’t think they are going to be kept empty do you? … it’s like saying Hitler built his camps with the intention of keeping them empty … but this time around it looks like both the Christians and the Jews will be in the same boat.
Paul. Jade helm is a conditioner nothing more. The next run will be the real deal.
Jerry, it should be clear what leadership is and isn’t by just looking at your posting on Putin and listening to Michelle O’s divisive tirade yet again on a college campus. Any doubt what inspires one’s better nature?
Economic upheaval is one thing. We certainly would not be the first to hit the wall in that respect. But, to purposely create division, finger point to deflect failure, agitate and stir up people already beleaguered and bewildered is just unconscionable.
Even if we dodge this nightmare, I have no faith that enough of the population has had enough of this. Can we dispense with the notion of voting for a black, or a Hispanic, or a woman as though this would satisfy God knows what? Does it take 20 million dead by war and 20 million dead at the hands of a tyrant to get a clue?
Do they have to load us on the back of a cattle transport in our own driveways before we get serious about what matters?
Here’s some cheesy diplomacy for you. This involves a children’s cancer benefit in Russia. Contrast this with our leadership who are the most selfish, ungrateful, depraved Cyclops from hell.
A question to everyone: Do you believe that what you read in the news is really news?
That is to say, is it really new?
Nothing more than a Ministry of Propaganda / Spy Agencies to distract the public from matters of importance.
If I have read something then how is it possible for me to believe it, for I have read it.
Read the question carefully: I asked you not do you believe what you read, but do you believe that what you read is really new?
What I read is not new, for before I was able to read it, it had to be written, and before it could have been written it had to be known, and before it could be known it had to be revealed, and for something to be revealed it must first be conceived.
If I had first known something only by reading it than it is certainly very old indeed.
Ticks cause lime disease! No joke it really happens . People get sick and even die from tick bites. Go home little girl.. Your Momma is calling for you.
Sorry Greg I have had my fill of His / her ignorance.
What Is the Good News?
God wants people to enjoy life on earth. He created the earth and everything on it because he loves mankind. Soon he will act to provide a better future for people in every land. He will relieve mankind of the causes of suffering.—Read Jeremiah 29:11.
No government has ever succeeded in eliminating violence, disease, or death. But there is good news. Shortly, God will replace all human governments with his own government. Its subjects will enjoy peace and good health.—Read Isaiah 25:8; 33:24; Daniel 2:44.
Suffering will end only when God clears the earth of bad people. (Zephaniah 2:3) When will that happen? God’s Word foretold the conditions that now threaten mankind. Current events indicate that God’s time to act is close.—Read 2 Timothy 3:1-5.
We should learn about God from his Word, the Bible. It is like a letter to us from a loving father. It tells us how to enjoy a better way of life now and how to enjoy everlasting life on earth in the future. True, some may not like it that you are receiving help to understand the Bible. But the opportunity of a better future is too good to miss.—Read Proverbs 29:25; Revelation 14:6, 7.
Greg, long time follower and a big fan. Iv posted your videos many of times over the last 2 years and had some success waking up those whom are sleeping. I believe as many of the Watchdog followers it ends badly, how bad ? I really have nothing more to add except John Williams Mandarin, Holter are spot on and though Harry Dent is a technical guru I just don’t see things his way. Thank you for all you do, for all of us. Be safe and God Bless.
Do you believe that money is made by reading the news or by making the news?
Money, like information, like beliefs, can be twisted to serve the desires of those who believe they have the control necessary to cover the cost of believing such control can be had.
And often some people have information that others will have only later. By the time it reaches the papers, it is too late to act on it.
What you read is like a house of mirrors.
A piece of advice: where you see no reflection, go in that direction.
CLS is there no solid truth in your life? Tell us about it.
For those who have eyes to see.
JC, most people go too quickly. In this world now, what they don’t know is hurting them. They are batting at shadows.
The question is not whether the news is deceptive or not. Seen from a certain level, it doesn’t matter if the news is deceptive or not, if it is true or false, yellow or blue or green.
By the time it reaches you, it is too late.
The secret is that there is no secret.
Think about this.
That’s hilarious Greg….CLR…isn’t that a cleaning liquid. Freudian slip…I think you meant CLS…? 😉
Acronyms can be quite amusing …except for the ones that are intentionally designed by the Elite to suit their agendas. I should write them down on a page for you one day…that right there takes this to a whole new level. Something so innocent does in fact have roots.
Walking in such a direction may well take one off a steep drop, best to look down at ones feet prior to making each step, especially when one realizes one is swaddled in deception.
Whats the point with the stupid videos and benign questions. Make a statement and stop trying to be hip or confound us. Say something….
People, If you want to unite the people and save our country, support Hillary Clinton. She is the only one that knows the way besides the almighty himself. Hillary is a chalice of Jesus and a worthy servant of the creator. She understands the gravity of our times and the needs of our country. Stand up and Stand tall for Hillary.
Or a commedianne
Ever hear the saying only a mother could love, only a neo-con could love Hill and she’s probly only running to stay out of the federal pen and if she loses tell ur friend Vicky she’ll propyl share a cell with her and we don’t mean phone!
I am not a paid troll and you and some of your probably white middle aged misogynistic woman hating slobs have it all wrong. Then again, what can one expect from over the top right wingers. This is not fair at all. Hillary does care. Hillary listens to the people. Above all, look who is leading all of the polls. HILLARY !!!! You go girl !
Please don’t make me puke!
Your comments make me want to throw up!
Yeah, why not put Hillary in the White House again, the occupant of that office is just a titular head anyway; we all know that our government has been reduced to some comatose lump of luke warm meat continually, routinely, opportunistically and savagely abused by a carousel of freaks, scumbags and deviants flush with fiat money.
Gina, that is just Hillaryous. You surely have Hillary mixed up with someone that actually cares about the American people. Hillary is at the head of the class when it comes to corrupt, unethical, immoral, two faced, lying, 1%er. Bill, lie. Hillary, lie. Chelsea, lie. Please do your homework.
You’re kidding, right?
Beware Of Politicians Bearing Household Analogies
The British election campaign has ended, and Prime Minister David Cameron ran with the slogan that his Conservative Party will deliver “A Britain living within its means” by running a surplus on day-to-day government spending by 2017/18. It is, as the UK Telegraph noted, hardly an inspiring slogan. But it is one that resonates with voters, because it sounds like the way they would like to manage their own households. And a household budget—whether you balance yours or not—is something we can all understand. If a household spends less than it earns, it can save money, or pay down its debt, or both. So it has to be good if a country does the same thing, right?
If only it worked that way. In fact, a government surplus has the opposite effect on Joe Public: a government surplus means that the public has to either run down its savings, or increase its debt. And if the government runs a sustained surplus, then—unless the country in question has a huge export surplus, like Japan or Germany—a financial crisis is inevitable.
That’s the opposite of what both politicians and most of the public think that running a government surplus will achieve—and yet it’s easy to prove that that is the outcome a sustained surplus will lead to.
Firstly, a government surplus means that, in a given year, the taxes the government imposes on the public exceed the money it spends (and gives) to the public. There is therefore a net flow of money from the public to the government. As a once-off, that doesn’t have to be a problem. But if it’s sustained for many years, then the public has to provide a continuous flow of money to the government. Let’s call this flow NetGov: a sustained surplus.
One way that the public can do this is to run down its own money stock—to reduce its savings. But that’s the opposite of what the policy is intended to achieve: the expectation of enthusiasts for government surpluses is that it will enable the public to save more, not less. But as a simple matter of accounting, increased public savings—increased balances in the public’s bank accounts—are only compatible with a government surplus if the public can produce more money than it pays to the government to maintain its surplus.
This raises the question “how does the public produce money?”. Anyone in the private sector can produce goods and services for sale, but the production of money is a very different thing to production of goods. The public in general can’t “produce money”—but the banks can. As the Bank of England recently explained, banks create money by making loans:
“ Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money (Bank of England, “Money Creation in the modern economy”)
So if the private sector is to finance the government sector’s surplus, and if the economy is growing at the same time, then there has to be a net flow of new money created by the banking sector—part of which expands the non-banking public’s money stock, and part of which finances the government sector’s surplus. Therefore the banking sector has to “run a deficit”: new loans have to exceed loan repayments (plus interest payments on outstanding debt). READ ON, CARRY ON BELOW;
Wow. Must be smoking something …..How can you even imagine, a devout abortionist….is favored by Christ?
Amen she is favored by Christ. She is also favored to win the election in 2016. You will see. And when we win, you will be the happier for it. She will set all of us free in ways noone can imagine now.
If you cannot spell “no one” correctly you should just go with “nobody”. Your whole ham handed “chalice of Christ” thing constitutes a blatant and inimical mockery of something a good many upstanding people on this earth take very seriously, you should probably knock it off.
Cant yall see a joke ! Funny to me.
If you are not awake now, then you are still asleep. Less observant than a sheep.
The sad thing about history is that it is always repeated.
Greg I’d like you to find someone to explain in this environment exactly how hyper-inflation will emerge. What were the mechanisms that brought on the Weimar Republic’s hyper-inflation? Were interest rates near zero in Weimar? Was the general population borrowing lots of money just to survive ?
The general population today are too poor to borrow from the banks and I don’t see how the derivative money can find its way into the consumer economy since derivatives are an elitist casino. Inflated house prices do add to inflation as do salaries of non productive public servants. In hyper-inflation environment businesses also must be borrowing huge amount of money just to pay their workers. Inflated share prices will find their way into the consumer market when sold off.
Has anyone actually studied the mechanisms of hyper-inflation in relation to the banks creating excessive money ,Govt borrowings , business borrowings and how the consumer/worker interacts in this scenario. I don’t really understand it.
Ross! Try to obtain a copy of “The Lost Science Of Money” by Stephen A. Zarlenga, 2002, American Monetary Institute, ISBN 1-930748-03-5 . I found this gem of a book in the references in Ellen Brown’s “The Web Of Debt”, which, in turn, I read after hearing Ms. Brown here on Greg Hunter’s site. ( I had read a great deal before about Weimar Germany, and most authors have blamed ‘the German government’ for the 24/7/365 money printing presses running wild, but it was really their private bank conglomerate that made it happen! That was an eye opener for me.) So…like Ecclesiastes said “there’s nothing new under the sun…” in what the US is experiencing now.
Just for a moment, can we pause and try to imagine if all the outrage and compassion and investigation and msm attention was about Benghazi and not ” deflategate”…the feeble mind of America is hysterical…this coming economic disaster of epic proportions will hit many of these same Americans right in the back of their forehead…
Nature always culls the herd. LOL
Greg: Gina just ate schrooms!
Paul and Paul from Indiana, I really liked your comments.
Traveller, Diane et al, You are so right, except Traveller, sorry to inform you; you way over-etimate Seattle. Washington State government is controlled by Californicated Seattle and it is sucking real bad these days. The only thing you can say that is good under Seattle’s facade is, you are not that far from Idaho, a free state! Yes, Oregon is having trouble fighting off the Californicators too. They destroy everywhere they take there socialism,” you cannot fix stupid without war.” That is my little contribution to the literary world. Quote me!
As you know there is a great book for Ross on the Weimar, German money inflation. It is kind of hard for the average reader to get some of the reasoning but there are example stories in there that I will mever forget. The city dwellers and the farmers exchanged everything inside there houses. A Farmer could trade a sack of potatoes for a Grand Piano like his son always wanted but he could never afford. That is why Jim Rogers says buy farm land if you can. Today I saw romain and butterhead lettus heads for 2.50 each and I have learned to raise them for pennys. I Save my own seed and feed my clan and friends ten kinds greens on 200 square feet, at least 6 months a year. The patch can hardly be seen. By the above measure, yesterday, I gave away 20plus dollars worth not counting what I ate. I can see no difference in my patch today. In Weimar the real money was in food that you could grow.!!!!! This is also what happened in the American Depression, for years my old friend would tell me one simple phrase. “You(people) did not spend money” !!!! I finally figured out what he was really saying: Most did not spend money because they had none. If they had any money they did not spend it because they thought they would never, ever, get it back. As they say now a days the Velocity of Money was ZERO!!!!! It is pretty much the same in my opinion whether it is inflation or deflation. Money becomes useless. Hemmingway(THE) reported from France in the 1920’s that he would go across the border into Germany every night to drink and eat because he could buy so much for so little of a currency that had actual value during the Weimr inflation.
I think you are thinking about Fergusson’s (first name escapes me…possibly ‘Adam’) book ‘When Money Dies’. Yes, it does have wrenching descriptions of life in Weimar Germany.
Two major bond events in less than 1 week……
Can anyone spell unwinding.
Love you MFN.
The thing that troubles me the most about our present state is not the reset. A reset is needed and the world needs to come back to reality.
What troubles me is the chaos that will occur when the masses finally clue into the lie and the size of the lies.
Greed, arrogance and the willingness to lie in order to achieve a position of power is about to take us down.
What ever happened to the principle of Fiduciary duty…..
Thanks. Good interview. I like Mr. Williams. Just confirms what I know is coming. I’m about as ready as I can get. Time to pay the “piper”. We deserve, what is about to come.
don’t have a mid week interview. Let the people talk on this issue before being distracted to the next. Your rating’s may drop , but people need to understand this subject more then all the rest. Most people still don’t know.
Only applies to moral people.
There are trillions of US Dollars floating around the globe. They are mostly in financial instruments earning very little interest. When the world abandons the dollar as a reserve currency these dollars will have no value to anybody because once nobody needs petro-dollars THEY WILL HAVE NO PURPOSE. There will be a mad dash to take them to the USA and spend them as fast as possible. Once this velocity picks up it will feed on itself. The inflation will be obvious to anyone holding dollars and they will want to spend them before prices go even higher……welcome to WEIMAR. By this time nobody will part with their precious metals for anything fiat. Unless the Fiat has a good motor!
“Unless the Fiat has a good motor” – good one!
Absolutely hard time are ahead for the U.S. I’m not supposed to tell you think, but us Canucks to the North are planning an invasion of the U.S.A. some time in the near future. We’re all armed with our plastic knives from Kentucky Fried Chicken and ready to rock. Be afraid……………..be very, very afraaaaaaid………