John Williams on Newsmax
ShadowStats’ Williams: Big Trouble Looms No Matter Who Wins
Sunday, 04 Nov 2012 04:05 PM
By Forrest Jones
Whoever wins Tuesday’s election — whether it’s President Barack Obama or his Republican challenger Mitt Romney — will battle economic depression and hyperinflation, thanks to years of a lack of political will to pay down debts, private-sector economist John Williams wrote on his ShadowStats website.
Monetary-stimulus measures that have weakened the dollar to jolt the economy will send the economy into depression at a time of soaring prices, likely around 2014, he wrote: “The next presidential term most likely will see the onset of a domestic, hyperinflationary great depression.”
“The long-term solvency issues of the United States remain the primary threat to domestic financial, economic and political stability and to the relative global valuation of the U.S. dollar. The dollar’s vulnerability to this issue has been seen consistently with ongoing failed federal budget negotiations and ever-expanding quantitative easing by the Federal Reserve.”
Editor’s Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.
The Federal Reserve has pumped trillions of dollars into the economy since 2008 via three rounds of stimulus measures known as quantitative easing.
Under quantitative easing, the Fed buys assets such as mortgage debt or Treasury holdings from banks, pumping them full of liquidity in a way that pushes interest rates down across the economy to encourage investing and hiring.
Side effects to such extraordinary measures — dubbed by many as printing money out of thin air — include rising stock and commodity prices, a weakening dollar and mounting inflationary pressures.
Loose monetary policies coupled with crushing U.S. debt burdens will prompt investors to cease viewing the country and its currency and debt as safe-haven assets, which will lead to economic depression and hyperinflation.
“Neither Obama nor Romney, as president, has much if any chance of stabilizing the economy or fiscal conditions in the short-term, and of preventing a hyperinflationary collapse of the U.S. currency,” Williams wrote.
“Where Mr. Obama, upon entering office in 2009, had the chance to change the future of U.S. fiscal conditions dramatically, he did so, but in the wrong direction,” Williams added.
“Mr. Romney has promised to take immediate actions to balance the budget, to restore fiscal normalcy. Any President, new or re-elected, deserves the benefit of the doubt—irrespective of truly intractable deficit difficulties that largely were ignored during the presidential race.”
Fed officials themselves are at odds over the U.S. central bank’s loose policies, with most favoring accommodation and others sounding alarm bells over inflation, most notably Richmond Federal Reserve President Jeffrey Lacker, who dissented against several Federal Reserve decisions.
“The behavior of inflation is fundamentally attributable to the actions of the central bank, while growth and labor market conditions are affected by a wide variety of factors outside the Fed’s control,” Lacker recently told a business conference in Roanoke, Virginia, according to prepared remarks from his speech.
Editor’s Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.
Read more: ShadowStats’ Williams: Big Trouble Looms No Matter Who Wins
I think I just saw a unicorn fly by my window!!
Good luck on that ever unfolding, as if the wheels that make Wall St turn are ever going to back currency with anything that they can’t control…. the great pushers of debt.
Big business around the world controls the farmers….Raw Material Economics had a chance years ago…but perhaps a financial meltdown will usher in such a new economic trade???
I’ll cheat and just sit at the end of the rainbow with my pot of gold and silver as the idiots of the world continue creating debt attached to paper iou’s
I’m not in the hyper-inflation camp the system will collapse before hyper-inflation hits the US$ on home ground….but the US will be exporting their currency inflation around the world….not a gold backed currency believer either, at best perhaps a fractional US$/Gold backed currency….??
JJ, that wasn’t a unicorn flying by your window; it was the dollar. As I’ve said, the dollar is moving higher for the foreseeable future.
Too funny, interesting action today Richard watching both gold and the US$ rise we could well see gold and the dollar rise just as gold ran from $1400-$1900+………..
Your looking for a 82.5 top, my daily, weekly and monthly charts don’t highlite 82.5…how is that a key value for you?
Hebrews – Chapter 11
1 Now faith is the substance of things hoped for, the evidence of things not seen. 2 For by it the elders obtained a good report. 3 Through faith we understand that the worlds were framed by the word of God, so that things which are seen were not made of things which do appear.
6 But without faith it is impossible to please God…
Not saying hoping for a unicorn will please God, but what He says counts…
And here is the warning:
Prov 11:4,28 (NIV) Wealth is worthless in the day of wrath, but righteousness delivers from death… Whoever trusts in his riches will fall…
Missive,
How about this though: “Poverty is NOT a sin. It is just DAMN inconvenient!” God WILL be served through the good deeds of man…..just depends how “big a shovel” do you want to have to ACCOMPLISH those good deeds. As long as that particular shovel IS NOT morally encumbered by ill-gotten gains, greed, cruelty and vanity.
All the best,
Marc
No Marc, “poverty is definitely not a sin”. Not helping those in need definitely is! (Notice I did not say, not helping everyone.)
Big Al
I completely believe in that warning, Missive!
Big Al
Marc. Throughout the good book, it is the object of a human’s trust that brings the Big Boss’s wrath or blessing.
If you put your trust in riches, history shows dart vader juniors love to plunder, steal and destroy. And they love targets that run in fear.
According to that prov 11 4,28 we should all forget about trusting gold? rightousnous delivers from death? anyone paying taxes in the west is toast then.
I have never been able to figure those books out. Nothing against them, just sayin I cant figure the logic.
No matter, I will keep my gold and add when I get a chance.
I really like Mr. Williams work, too bad a few people couldnt get together and impliment a decent currency and policy in one of the states.
Never happen of course, the federal reserve will never allow it.
But everything is going to be just fine in a couple of days, no matter who is presedent. At least thats what the people will be told and they will believe it for awhile. I might just go get myself a good whiskey and toast the winner.
benb – Just take the apostle Paul’s advice if that is any consolation to you:
1 Corinthians 15:32 – And what value was there in fighting wild beasts–those people of Ephesus–if there will be no resurrection from the dead?
And if there is no resurrection, “Let’s feast and drink, for tomorrow we die!”
What do you think of the new member of our forum, Missive?
Big Al
Everyone here is seeking the truth, whether they realize it or not. That is good company, in my opinion.
I have a lot of time and respect for you Missive!
Big Al
I have a lot of respect for you and your work as well Al.
Coming from you, Missive, that is quite a compliment.
Thank you,
Big Al
Hi Miss, thanks but I am not christian, so all of it is just somthing to be watched for me. Not to say I disagree with the basic/simple teachings, which I do, but after that I think its all debatable.
As evidence imagine a morman,penticostal,baptist,catholic and jehova witness in the same room and see if there is no debate. Some of them dont even consider the other christians to be christian.
Thats why I am not christian, but I figure jesus taught some truth, same teaching as alot of others from diferent time periods and nations. All the same truth, just different people sayin the same thing. If people actually listened and applied it we would have peace etc.
Not a chance tho, kinda like the federal reserve being dismantled, no matter who warns about them.
“same teaching as alot of others from diferent time periods and nations.”
I would revisit the acquired knowledge you possess about Jesus. The claims He made about himself just lead one to conclude he was either a very believable nut job, or what He claimed to be, the son of God sent to redeem human kind under which all authority would be placed, amongst other things.
A good and wise teacher? Not if all his claims were the fruit of grand dillusions.
Hi Miss, you make my point, the simple stuff, good to people etc, I agree with that
no matter who says or said it. Beyond that the debate is on.
Might be simply, benb
But, my lifelong question has been, “If it so simple why doesn’t everybody do it?”
Best to you,
Big Al
If He were a very believable nut job, of course you are correct.
I just personally don’t happen to believe that He was.
Big Al
Benb, as evidence imagine answering a question with a question is the way to get one to agree with you(for me). What if, what if, or suppose can do in a pinch with all contrary views with regard to truth, as witnessed by Jesus the Christ in the Gospel`s. Though other`s taught nice things too, but Jesus had miracles of healings, signs and wonders abounding throughout his ministry, and beyond his followers too, all the while using the name of Jesus(Mark 16:17-20). Philosophy is nice but has no substance(Hebrews 11:1). The Word of God is spiritually discerned[you must be born-again(John 3:2-21)].
Certainly a great point, Dennis F!
Big Al
It’s okay to vote Romney in the hope’s he addresses fiscal issues, but I am not counting on him to be any different than Bush and Obama. Romney would be a one term president if he does the right thing. He is more likely to take military action than attack the budget.
DONALD………….I think the people should just write in your name sake……..Because lets face it ..the O & the R , are just as QUACKERS as the DUCK.
Donald, honestly I think with a few different spins the two are one and the same in a very basic sense. I know that they say that they are not, but I just can’t buy that.
Big Al
Obama is better, gold should go up faster with him.
Romney is good for gold too, remember neither the two shall twain, `A set of two:“Oh East is East, and West is West, and never the twain shall meet“(Kipling)
I think that purely and simply, mid to long term every element of society is good for gold!
Big Al
Short term, I would agree benb
Big Al
Stop issuing currency attached to a debt instrument. Issue it against raw material production (mines and farming) and the rainbow in the sky will become apparent to all.
Williams was sent a book about “Raw Materials Economics”, I guess he didn’t read it.