We’re Going to be in a New Recession-John Williams

WILLIAMS_092_wade.JPGBy Greg Hunter’s USAWatchdog.com 

Economist John Williams thinks the economy is in worse shape than most people think.  In 2013, Williams predicts, “As this goes forward, you’re going to see we’re going to be in a new recession.”  The Federal Reserve announced last week it is now printing a total of $85 billion every month to reduce unemployment and stimulate the economy.  Williams says, “That’s nonsense. . . . There’s nothing they can do to stimulate the economy.”  Williams has long contended the Fed is really just using the weak economy to continue to prop up the banking system.  Williams says, “If the Fed wasn’t doing what it’s doing . . . I’d presume you’d be on the road to a banking system collapse.  The banking system is still in trouble.”  Williams warns the “open-ended” printing of $85 billion a month “. . . will be part of what will eventually become hyperinflation.”   And if there is no deal on the so-called “fiscal cliff,” then Williams expects “heavy selling pressure on the U.S. dollar.”  Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com.

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  1. Paul

    The look on john williams face tell it all, this is not going to be good for anyone what’s coming soon.
    Greg thanks for the web site enjoy coming here to hear the good news.

    • Greg

      Thank you Paul JRMFL and Rev. Joslin!

  2. JRMFL

    Treasuries will collapse long before the Dollar. Look at a 30Yr Monthly Chart of the Long BOnd and draw the trend lines, if it fails the 144s, it could waterfall. IF it holds there it will signal the top of the Equities Markets.

    And it will turn back up and run thru 155 and break the Upper Trend Line.

    Either way, we are in for a serious issue.

    • Thomas

      JRMFL: How’ve you been, dude?!

  3. Rev. William Joslin

    Great interview Greg! One thing I really like about your videos is that you allow your guests to speak. You never try to talk over them. Your videos are very informative. Keep up the good work!

  4. JoeJustJoe

    Greg, the dollar collapsing yet so is gold. Every single one of these ex-spurts you interview have said gold will be the safe haven for a dollar collapse. You need to ask every one of these guys why this isn’t true. And when they give you the standard canned answer of “it’s manipulation” you need to ask them >>> “How do we play maniplation?” 🙂 Because every single one of these guys have been wrong as wrong can be. Is Yra Harris “OK”??? Poor fellah has probably lost more $$$ in the last few weeks than anyone else out there.

    • Greg

      If you look at this through your “trader” eyes yes you are correct. Most here do not trade but are holding metal that is up 500% in the last decade. Have you thought how you are going to bet all those profits out of your brokerage when it collapses? Love the comments even though we disagree on strategy.

      • JoeJustJoe

        I’m back to my VIXens as of yesterday and today and the dollar collapse will be ending in short order too, Greg. I took a small short position in FXE 2 days ago and was early there….but I have until Jan expiry. I also continue to build a long position in EDZ but FXP will work just as well. I have no positions short GLD or against the gold shares. But keep an eye on my NUGT target of 7.90 minimum. “If” gold contiues to collapse as the dollar starts rallying sometime here soon perhaps then you will begin to realize that all of these talking heads you bring forth really have little clue. In the long run gold is destined for sub $500/oz and the HUI is going sub 150. What you will probably see in the short term is the moneyrunners banking gains to take advvantage of lower tax rates….and that will elad to your only buy opp for 2013. Call it manipulation if you must. I say the 52 week high in gold was manipulation 🙂

  5. Dan

    Greg you have to check out this video on you tube with Alex Jones and Pasteur Lindsey Williams. It’ll blow your mind. Everything you’ve been saying is gonna come true!

    Regards Dan


    • Greg

      I like Pastor Williams. Thanks for the comment and link!

  6. jay

    Well done Greg. Clearing up muddy waters seems to be easy for John Williams.So either way prices will go up,up,up!
    December 2012 – The first three arrests are made in the scandal. Days later, UBS is fined $1.5 billion to settle charges of rigging the Libor rate.

    • Greg

      We live in a world where criminals are exalted and truth tellers are despised. I fear when the American people finally wake up it will be too late.

      • Al

        I regret that we have passed the tipping point

  7. frosty


    Most of those interviewed here say that the efforts to rescue the economy are going to fail and, at the best, make things worse. They seem to be under the assumption that those attempting the rescue are motivated by good will but are simply ignorant in the field of economics even though they hold advanced degrees in that subject.

    I can’t connect the dots here. It seems to me that when someone is drowning in a debt-hole constructed by another who then purports to attempt his rescue by throwing out an anchor instead of a life vest, the one in the hole would, at some point, and if not completely blind, begin to seriously question the other’s motives. No?

    • Greg

      Good point Frosty, good point.

  8. Mitch Bupp

    John is right….. but the FED has been in the business of devaluing the dollar since their inception…. the more they churn the more they earn….. the problem is that the more they print the more inflation we see from th rising prices of commodities. The CPI is a joke and doesn’t represent real inflation today.

    Thank You John and Greg, Mitch Bupp

    PS … all ponzi’s need more money up front ….. FED feeds monster should be the the lead!

    • Greg

      Thanks Mitch for weighing in here man!!!

  9. AndyB

    What is left unsaid by JW and other purveyors of the “truth” is that it can no longer be denied that there is a purposeful agenda to not only destroy the US middle class (the last bulwark for Democracy) but also to prepare us for the inevitable totalitarian state that will arise.

  10. TxMongoose


    This $85 billion is just a piece of it. In actuality, it is closer to $170 billion a month. The report at http://www.washingtonpost.com/business/federal-reserve-wraps-up-2012-still-facing-high-unemployment-and-sub-par-economic-growth/2012/12/12/cea83aee-4419-11e2-8c8f-fbebf7ccab4e_print.html explains it all.

    “In its statement, the Fed said it will also keep spending $85 billion a month on bond purchases to drive down long-term borrowing costs and stimulate economic growth. The Fed will spend $45 billion a month on long-term Treasury purchases to replace a previous bond-purchase program of an equal size. And it will keep buying $40 billion a month in mortgage bonds.”

    It is a classic Ouroboros….a snake eating its own tail.

    Keep up the good work as we continue down this vortex.

    – TxMongoose

    • Greg

      Thank you for the comment and link!!! The real annual deficit is closer to $7 trillion (using GAAP) according to Williams. Your numbers make a lot of sense and we don’t even know what is happening with the dollar/euro swap lines in the EU.

  11. larry english

    Mr.Reagan printed money for armerment , and the former USSR could not keep up in that race which eventually destroyed them . Today the USA is printing itself into oblivian to “protect” their reserve curancy statis & keep their exports puyable .Other countries are doing the same to try to preserve their export market . could there be some method in USA maddness .

  12. sturmudgeon

    Thank you Greg, and JW:
    Your site and a couple of others like John Sinclair are so good about sifting through the ‘fog’ that is projected at us. Many of us, I’m sure, cannot fathom what is going on ‘behind the scenes’, and it is sites like yours that straighten us out a bit.


    • Greg

      Thank YOU Sturmudgeon for your comment and support.

  13. Rebecca

    I had heard this somewhere and it has stuck with me:
    “Democracy is two wolves and a sheep deciding what’s for supper.”

    It would seem to be apropos to what is happening in regard to the FED’s action in its endless QE and monetizing of debt.

    When – or will – the sheeple ever wake up and see we are “what’s for dinner”?

    • Greg

      Good stuff Rebecca!!

  14. Lew

    I wholeheartedly agree with Mr. Williams, recession is near (and likely already here). Nothing has really changed, and the same incompetence that got us here is still running the show. I think that this Fiscal Cliff Drama may actually be the best thing at this point for us.

    The only reason we don’t see higher inflation (it’s higher than reported) is the continued drop in workforce participation. I’m not convinced that we will see Hyperinflation, but, I am uneasy about the possibility.

    In the future, people will only be able to shake their heads in disbelief over the past 100 years.

    Thanks Greg.

    • Greg

      Thank you Lew for weighing in here! By the way,inflation is around 9% according to Williams if calculated the way BLS did it in 1980.

  15. Ugly

    This is all going to get ugly.

  16. Dan Popa

    Hey Greg- Great interviews. Been passing your site to people. Greg Mannarino is a great guest. Thanks- Dan

    • Greg

      Thank you Dan Popa for the comment and promotion.

  17. daan

    There is a clear reason why the US economy can not respond positively to the QR’s. Earnings of US households are linked to official CPI while their cost of living goes up by Shadowstats CPI. They have become impoverished and continue to do so. Am not sure that it is on purpose or just an undesirable consequence of Clinton policies – and now they are stuck with it and can’t get out. Perhaps AndyB is right – difficult to accept that the economists could not foresee this back in the 90s.
    Thanks Greg – my first visit here.

    • Greg

      Welcome Daan and thanks for the comment!!

  18. art barnes

    What the powers to be, the MSM, the Fed, the elite, are really trying to do with all the spin is trying to convince the people and the world that all is well and recovery is well underway. In essence, they are hoping that can pull out of this by way of a confidence game. However, it won’t work, too many people were destroyed while they saved the banks and now know better and won’t buy into it any longer. Also, other currencies are on the rise which give investors other options and more stimulus (printing) isn’t working any longer, its just holding the status quo. When inflation ramps up next year & unemployment creeps up & up the FED, the treasury, and Wall Street will head for the hills. Of course, Washington could always start a war which is more likely holding the world hostage to the dollar.

  19. helen stern


    Keep up the great work at delivering real news that
    facilitates understanding of our current economic
    situation. Please consider discussing Velocity of Money as
    it relates to hyperinflation. What will ignite the money
    velocity in this current climate of recession?

    • Greg

      Thank you Helen for the comment and idea!

  20. JoeJustJoe

    Jeez, Greg! They aren’t even waiting for the dollar to bottom out! Call 911 for Yra Harris! Gold getting pummeled! 😮

    • Greg

      You have to think a little more long term my friend. You do realize the Fed is printing $85 billion a month to infinity (“open-ended”). Have a nice weekend.

      • JoeJustJoe

        You know, here’s something you might find interesting that one of your fellow goldbugs pointed out. Even I didn’t realize this statistic…but it pretty much falls inline with what I have been saying about >>> As the market goes from this day forward…so goes gold and the gold assets. Check this in >>> Since 2009 the SPX has moved from 666 to 1475, and gold has rallied from about 850 to 1900. I found that pretty interesting actually. Of course physical gold did in fact top out before the SPX did. That just goes to show how smart gold is. Too bad the goldbugs weren’t equally as slick huh? 🙂 Anyhoo, definitely more downside coming in the goldies over the next several days and I’ll be “hoping” to join you folkes in some fine gold stock positions soon. If ya see Yra and all the other guys, tell em what I told you folkes all along. I’ll definitely be there to pick you up from amongst the smoking ruins. *-) How about those sexy VIXens, Greg? The moneyrunners refuuuused to give anyone a decent entry today even as the SPX rallied! Methinks the move that “shoulda” came when the SPX dropped from the 52 week high is now materializing. I luuuuv my sexy VIXens! *-)

  21. OhioRiver

    “…new recession…” I thought we were still in the old recession. Where is the outrage by the people for the corrupt politicians who got us into this mess? We didn’t do this!

    Greg, another great article on what is really happening to Americans.

    • Greg

      Thank you OhioRiver! I think Williams was talking about an “official” recession. Yes we have been in recession since around 2008.


  22. BOB D

    They use to say, inflation was cause by wages. If that was true, we are heading for deflation.
    Not many people can afford gold as a back up plan. This simple fact,tells me wages have some catching up, before you can have run away inflation.
    We got to many investors living off the back of labor. Government is trying to soft land the investor class , that includes pension funds.
    It seems that the global bankers owe one another, this hot potato debt. It’s really like two worlds using to kinds of math.
    Labor at the end of the day will tell the market,what a potato is worth. If the market[investor] can’t jack up the price and can’t drive down wages,stagnation is what you get.
    Stagnation the battle ground of Labor vs. Investor. I bet the out come will be TurdFlation. TurdFlation when everyone is full of BS. PEACE Man,legal in Seattle

  23. Norm Ezzie

    I must try and explain something really difficult here- the only real answer to our economic crisis is: Go after those global-dynastic-banking-families! Greg,imagine if We,The World could organize the entire planet to charge those financial henchmen a “fee” for their illegal actions-and actually extract “some wealth” from them! Never does anyone speak of their personal wealth they’ve accumulated for centuries!Am I saying things here that may be too extreme,if so….what are those in charge doing? Who can you name that ever speaks of that vast wealth those money creators hold in their own secret vaults? There;s not enough money in circulation that can pay back those trillions of “debt-based-dollars”- that said,I ask you again…what about that wealth they have and hold hostage over us?

    • Greg

      Good ideal Norm!

    • JoeJustJoe

      Aint gona happen. The Wall St criminals and the politicians are one and the same. If that clown Corzine isn’t going to prison for the hedge fund debacle he perpetrated, trust me…nobody is. As far as wage inflation there is plenty of it out there. Did you realize that the salaries of assistant college football coaches have gone up about 30% in a short 3 years? Why is that? Well, Nike, Underarmour, ESPN which is a division of Disney..they are all where the $$$ is filtering to via the Wall St crooks. ESPN waaaay overpaid for the rights to basically all their future programming. DIS will be a sub $20 stock in 2 years just as surely as Gemeral Electric will be a sub $10 stock becuase of alll the $$$ GE wasted by overpaying for other companies and leveraging the buyouts over the years. The “real” market knows all this and will take over eventually. The thing all you goldbugs aren’t anticipating is that the fact that DIS is a $15 stock and GE is a $5 stock is “de” flationary. Not inflationary. Gold will get deeeeestroyed. *-) Oh, BTW, as far as “all that debt”…it gets “forgiven” when you and your co-workers agree to give up your pension and benefits in order to keep your job…and take a 25% paycut on top of it…sorry >>> 🙁

  24. Norm Ezzie

    opps—almost forgot! tax wealth not income!!!!!!!!!!!!!!!!!!

  25. RB

    This Financial screw up, goes back to FDR (a Communist Infiltrator), when he got voted in, that was the death of “AmeriKa”

  26. Average Joe

    Supply and demand. Consumer cash and credit along with a living wages are becoming more scarce. The labor participation rate is now down to JIMMY CARTER levels, 38% have no work income whatsoever, not even part-time work, yet Obama is “Man of the Year.” We are in year four of a 1930’s style depression on steroids.

    Unless the FED issues each one of us *a weekly check* for a few million dollars each, you can’t have your hyperinflation. The people have less and less. It is the working/consumer that runs the show.

    As long as the trillions of bank fiat don’t hit the streets and end up in the people’s hands, the FED banksters will keep the game going, and they win because their bottom line increases incrementally, each day the workers of the world make the FED/Banks richer by the laboring of the workers.

    If a collapse occurs, people will be absolutely broke, and the banks win, they have all the money. They will be the buyers of your $3.50/oz gold, and buy up bankrupt companies for pennies.

    It is a win/win for the banks. For the people it is “pay the FED/banks a little today or pay the FED/banks it all tomorrow”

    When cash credit becomes scarce, people with the dollar, can go on living the same way they always have. Prices in the stores will be cheap as stores will have to cut prices in order to keep the doors open. Stores compete, they can’t raise prices when no one has money or credit.

    You really need guests on here to counterbalance the gold-bug/hyperinflationists. A little equal time, fairness doctrine LOL?

    Keep up the great work here, I always look forward to returning here, I really appreciate this work. I never had a class in economics, I don’t sell gold, seed vaults or books.

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  28. henry gordon

    fixing the economy is the simplest thing , an industrial power like usa can do . our elite simply dont want to do it , because its not in their profit interest

    • Greg

      I think you are spot-on Henry!

  29. Ron

    I think we have been in a controlled depression since 08.
    Its all smoke and mirrors and debt.The market is about manipulation.
    I look around and dont see a 13000 economy.
    Im not in the market.I just wrote this because i get tired of people talking about a possible recession?Funny!

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