In a recent article by Greg Hunter on the USAWatchDog website, there is a great concern for the upcoming economic collapse and hyper-inflation. The media has been diminishing the facts. We are in a state of rapid accelerated inflation (look at the price of gold – it is an inflationary indicator). There are mass amounts of people losing jobs. Taxes will dramatically increase in 2011 to levels before the Bush tax cuts. And President Obama continually makes matters worst. Greg Hunter says the following:
A little more than two years ago, economist John Williams of shadowstats.com predicted a “severe recession” was coming and soon. At the time, I was working as an investigative correspondent for CNN. I interviewed Williams for a story about the coming financial crisis. Most so-called experts, at the time, did not see the financial meltdown coming, let alone that all the banks were in trouble. Williams’ assessment of the economy was spot on in 2008. I don’t see how you can characterize what we have now as anything but a “severe recession.
The following video is a 2008 CNN story featuring Williams and his predictions for the President in 2012. This video was posted on YouTube March 1, 2008.
Williams also predicted 2 years ago we would have a “hyper-inflationary depression” within 10 years. Then, about a year ago, he revised his prediction and narrowed the window to “five years.” The day before last Friday’s dismal jobs report, Williams said, “. . . the timing of the looming U.S. financial Armageddon is coming into better focus, with increasingly high risk of it breaking within the next six months to a year.”
Financial Armageddon . . . within the next six months to a year. What is happening now to bring the timing into focus is the economy IS turning down. It is no longer the perspective the economy is going to turn down. That, in turn, will eventually trigger all the problems with the dollar, the debt and the deficit.
For confirmation the economy is rolling over, look no further than the awful jobs report from the government last Friday. The Bureau of Labor Statistics (BLS) reported July payrolls fell 131,000. To add insult to injury, the June jobs number was revised downward. The economy lost 221,000 jobs which is considerably more than the 125,000 the government reported last month.
You want more confirmation the economy is in the tank? Also, last week, the government revealed a record 40.8 million Americans are now on food stamps. More budget woes can be seen at the state level. Congress just passed an emergency aid package worth $26 billion to save teachers’ jobs around the country. States are facing $200 billion in shortfalls in the coming months. California is one of the worst, with a $19 billion budget hole to fill and a $500 billion in underfunded pensions . Commercial and residential real estate is still losing value, and set to take another plunge.
According to a recent article from financial writer Jim Willie, who has a PhD in Statistics:
Never in US history has a recession struck after several extended months of emergency ultra-low interest rates. This will be the first such occurrence. The policy response from the USFed must therefore be limited. They cannot reduce the official interest rate, unless below 0% (which did happen briefly in Japan). The nation stands on the doorstep of hyper-inflation. The only available tool within the USFed tool bag is Printing Press activity, pure monetization of both USTreasurys and USAgency Mortgage Bonds.
In his most recent report, Williams says:
The unfolding renewed decline in economic activity now is likely to be one of the proximal triggers for an even greater systemic solvency crisis, one that will pummel the U.S. dollar, threaten the solvency of the U.S. government and set the stage for a hyperinflation in the United States. In turn, such a crisis would exacerbate the intensifying downturn into a hyper-inflationary great depression.
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