John Williams of Shadowstats -- Terrible Currency Crisis Ahead

John Williams, founder of Shadowstats.com, points out there are more than $16 trillion liquid dollar assets held outside of the United States. If everybody starts dumping their dollars, Williams says, "That could trigger very high inflation here. You will see, for example, higher oil prices. You will also see mounting pressure, that is already there, to have the dollar removed as the world reserve currency, and that would accelerate domestic inflation. I am still looking for a near term hyperinflation; that is dependent on a very heavy decline in the U.S. dollar."

How bad could things get on the inflation front? According to Williams, measured against gold, the dollar could become virtually worthless. Williams contends, "In a hyperinflation, which I am looking to evolve here, gold could be $100,000 per ounce or a million dollars per ounce. All that reflects is purchasing power of the dollar assets you put into gold represent the purchasing power if you kept your asset in dollars. Gold is a store of wealth. I am not looking at this to make profits. I am looking at this as a long term hedge against high inflation to maintain purchasing power for the terrible currency crisis ahead."

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist John Williams, founder of Shadowstats.com.