Dollar Faces Death Knell -- John Williams of Shadowstats

 Economist John Williams says, “We are facing a terrible crisis. . . . In terms of the Fed (getting control) and the long term solvency issues, these are death knells for the dollar. Unless those are addressed, you are going to see massive selling of the dollar, a debasement of the dollar and high inflation that will lead you into hyperinflation. That’s what comes into play. Prior to this administration, I would have given the chances of avoiding that as nil, but with this administration, I have some hope here.”























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Dollar will Blow Up and Collapse -- John Williams

Economist John Williams says it is not a matter of if, but when, there is panic dollar selling. Williams says the Fed would try to slow it down. Williams explains, “The Federal Reserve would step in and slow the pace to make it not appear like a panic. If you start to see a panic selloff (in the dollar), that’s a real bad sign. It means they are losing control of the system, and I think that is coming. The initial effect on the system for people living in the United States, as the dollar crashes, you will see inflation beginning to surge, particularly from oil and gasoline prices. Those effects will begin to spread in the system. It will change the way people look at things and will start the process that will eventually be a hyperinflation. The Fed does not have a way out of this circumstance. They have backed themselves into a corner. They have been keeping things reasonably stable, but they can’t get things going in the economy. . . . The economy is in terrible shape.” Williams also says, “The dollar will blow up, and when I say blow up, it will collapse. There will be panic selling of the dollar, and that will intensify the inflation. The problem is they don’t have a way of avoiding it. If they could somehow get the economy back on track, they would have some room to work, I think, but the economy has never recovered.






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John Williams -- Dollar Takes Significant Hit

 Economist John Williams says that the Fed is still dealing with the fallout of the 2008 financial meltdown. Williams says, “They are still fighting the instabilities of 2008 that has not played itself out. When it does, they are going to be flooding the system with liquidity. It’s either that or they let the system fail. They decided in 2008 not to let the system fail. As they flood the system with liquidity, you will see weakness in the dollar. You will see a return of inflation domestically. You will see all sorts of other factors rallying such as traditional inflation hedges of gold and silver. If the dollar takes a significant hit, which I expect it will, that also will put upside pressure on oil prices. They did virtually nothing and did not address the things that led to the panic . . . now the economy is turning down anew.”

Join Greg Hunter as he goes one on one with economist John Williams, founder of ShadowStats.com.








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John Williams of Shadowstats -- The Fed has Lost Control

So, what is the next move by the Federal Reserve? Williams says, “I think the Fed has lost control of the financial system. I don’t know quite what they are going to do, but they are not able to do what they want to do. They want to raise interest rates. They had an opportunity back in June . . . they announced rather formally . . . that they were going to raise rates in September . . . and that didn’t happen. The markets began to move around, and they said the economy is too weak and were (the Fed) not going to do it.” What the Fed did with all of its bond buying and money printing did not fix the system, and Williams says, “I think we are going towards a QE4. . . . All that is bad for inflation. There is a point here where the dollar is going to take a tumble.”





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John Williams -- Where's the Hyperinflation?

 Mr. Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth's Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies.

Although I am known formally as Walter J. Williams, my friends call me “John.” For 30 years, I have been a private consulting economist and, out of necessity, had to become a specialist in government economic reporting.

One of my early clients was a large manufacturer of commercial airplanes, who had developed an econometric model for predicting revenue passenger miles. The level of revenue passenger miles was their primary sales forecasting tool, and the model was heavily dependent on the GNP (now GDP) as reported by the Department of Commerce.  Suddenly, their model stopped working, and they asked me if I could fix it. I realized the GNP numbers were faulty, corrected them for my client (official reporting was similarly revised a couple of years later) and the model worked again, at least for a while, until GNP methodological changes eventually made the underlying data worthless.

That began a lengthy process of exploring the history and nature of economic reporting and in interviewing key people involved in the process from the early days of government reporting through the present. For a number of years I conducted surveys among business economists as to the quality of government statistics (the vast majority thought it was pretty bad), and my results led to front page stories in 1989 in the New York Times and Investors Daily (now Investors Business Daily), considerable coverage in the broadcast media and a joint meeting with representatives of all the government's statistical agencies.
Nonetheless, the quality of government reporting has deteriorated sharply in the last couple of decades. Reporting problems have included methodological changes to economic reporting that have pushed headline economic and inflation results out of the realm of real-world or common experience.
Over the decades, well in excess of 1,000 presentations have been given on the economic outlook, or on approaches to analyzing economic data, to clients—large and small—including talks with members of the business, banking, government, press, academic, brokerage and investment communities. I also have provided testimony before Congress (details here).
An old friend—the late-Doug Gillespie—asked me some years back to write a series of articles on the quality of government statistics.  The response to those writings (the Primer Series available at the top-center of this page) was so strong that we started ShadowStats.com (Shadow Government Statistics) in 2004.  The newsletter is published as part of my economic consulting services. — John Williams




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John Williams of Shadowstats -- Central Bankers are running a pretty dangerous experiment!

GoldSeek Radio's Chris Waltzek talks to John Williams of Shadowstats
SR interviews JOHN WILLIAMS - Aug 13, 2014





    John Williams returns to Goldseek.com Radio with dire thoughts on the veracity of the official economic figures.
    The domestic economy has not recovered - virtually every economic indicator remains stagnant since 2009.

    According to the Wall Street Journal, the typical American household spends 62% merely to pay housing / grocery bills, an unsustainable burden
    While corporations have recovered from the recession, the everyday consumer has not.
    Without real income growth the largest component of the domestic economy, consumption (over 70%) could falter.
    The US Dollar will likely reverse course, which will result with runaway inflation and hyperinflation.
    The best defense is a good offense - only gold and silver investments can protect investors from the sea change event.
    His 2015 economic forecast includes a sharp decrease in economic growth / output, causing Fed officials to further delay rate hikes.

    Amid increasing global-currency concerns, stockpiling several months of cash in a well-hidden, fire proof safe is advisable.
    The ruble increased in value from 44,000 per ounce to 90,000 in 2014, currently at over 70,000 due to the crude oil plunge. The ruble fell so abruptly that gold doubled in value virtually overnight - the cost of goods and services blasted higher crushing the purchasing power of those without gold and silver insurance.

    The central fund of Canada, a PMs ETF with equally weighted gold / silver holdings is located outside the US providing additional geographic diversification.

    Caller George asks if the Fed is colluding to make the US dollar more attractive, particularly US Bonds, by forcing competing currencies like the euro into a negative interest rate environment.

    Alpha stocks newsletter subscribers are offered a 10% dividend yielding gold ETF-alternative.

    Caller John notes the Fed's massive mortgage backed security stockpile. The host concurs, citing how MBS rate-risks is an Achilles heal and likely why the Fed is so hesitant to initiate rate hikes.

    Listener Vidya is concerned by the threat of a looming, global economic collapse. The host expects such a scenario to come to pass within 5-10 years, given that the BRICS nations are shunning the US dollar





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John Williams of Shadowstats on GoldSeek Radio -- Dec 11, 2014

GoldSeek Radio's Chris Waltzek talks to John Williams of Shadowstats


Summary:

    The dollar rally will fade, leading to the next financial crisis.
    Actual domestic GDP was stagnant in the third quarter.
    The world is in a recession and the US economy, albeit one the strongest economies, is nevertheless stagnant.
    Once the false rally loses steam, the Greenback will drop abruptly, resulting in panic selling and hyperinflation.
    While the major media outlets brace investors for inevitable Fed rate hikes in 2015, the Fed may not raise rates.
    Expect a 2008 credit crisis part deux, but this time the Fed's arsenal is devoid of the required ammunition to prevent total economic collapse.
    Gold could climb first to $5,000 and eventually as high as $100,000+ per ounce when compared to paper assets making precious metals the ideal economic survival asset class (Note: this forecast is founded on the highly speculative premise of a worthless US dollar).

The top alternative economist from ShadowStats.com, examines his hyperinflation thesis in light of the recent explosive dollar advance, which appears to be little more than an fata morgana. The actual GDP as measured by corporate revenues of the S&P 500 firms, when properly adjusted for inflation was stagnant in the third quarter. In fact, when inflation is appropriately accounted, the world is in a recession and the US, albeit one the strongest economies, is nevertheless stagnant. Once the false rally loses steam, the Greenback will drop abruptly, resulting in panic selling and hyperinflation. While the major media outlets brace investors for inevitable Fed rate hikes in 2015, the Fed not raise rates and instead capitulate with new QE operations to provide liquidity to the banking system. Expect a 2008 credit crisis part deux, but this time the Fed's arsenal is devoid of the required ammunition to prevent total economic collapse resulting enormous prices: gold could climb first to $5,000 and eventually as high as $100,000+ per ounce when compared to paper assets making the precious metals the ideal economic survival asset class.



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John Williams of Shadowstats.com is Forecasting a possible Dollar Sell-off by the End of 2014

John Williams -- No Bank Bail-ins-Inflation Instead







John Williams of Shadowstats.com is forecasting a possible dollar sell-off by the end of 2014. Williams predicts this will trigger the beginning of hyperinflation. Are we on track for this prediction? Williams contends, “Everything the Fed has been doing to pump this extraordinary amount of liquidity into the system, since the panic of 2008, has been aimed at propping up the banks. . . . The banks are still in trouble. From here on in, it’s going to get worse, and as it does, the Fed is going to have to pump more liquidity into the system. . . . They will use the poor economy as a political shield. As the economy turns down . . . the Fed has to do more, and all these factors will come together in a great confluence, and that will give us selling pressure in the U.S. dollar. With this selling pressure, there will be upside pressure on commodity prices, and that will be the early trigger for hyperinflation.”

On the issue of bank bail-ins, will they happen? Williams says, “Nope, the Fed’s basic mandate is to keep the banking system afloat. I can’t envision a Fed that would want to see people losing their money because of what it does to the banking system. The problem with depositors bailing out the banks is that it encourages bank runs. It’s the run on the banks that the central banks have to avoid. . . . I doubt they would take actions that would trigger a big run on the banks.” So, instead, Williams says the Fed will just keep printing money to keep the banks afloat.

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

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.

John Williams of Shadowstats ~ The Coming Dollar Demise?

John Williams of Shadowstats in Oct 2013

This interview has been reposted with the permission of Greg Hunter.

John believes next year will be a bad year, but he's always saying this.
Utimately he may be right with the coming inflation, however, the timing is unknown. He's calling for much higher gold prices, but some of his estimates seem too high. Regardless of that, I respect Mr. Williams for exposing the faulty inflation numbers by the govt.

Williams stated a few years ago that we'd experience hyperinflation:



John Williams aka Walter J. "John" Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth's Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies. John Williams' Shadow Government Statistics is a monthly electronic newsletter that exposes and analyzes the flaws in current U.S. government data and reporting, as well as in certain private-sector numbers.. It also looks at the financial markets free of the hype so often put forth in the popular financial media. Generally published on the second Wednesday of the month, the newsletter is supplemented by Flash Updates and occasional Alerts that highlight unusual developments.

John Williams of Shadowstats ~ Very Serious Trouble in 2014 - Weaker Dollar and Hyperinflation

http://usawatchdog.com/early-stages-o... - John Williams of Shadowstats.com predicts, "You're going to have a dollar panic, but I can't give you the exact timing on that." Another potential problem is a credit downgrade of U.S. debt. Williams says, "If we get a downgrade here, that would accelerate the process of the dollar selling and moving us again into the early stages of hyperinflation." Williams says you can protect your wealth by holding hard assets. Williams goes on to say, "If your assets are denominated in dollars and Treasury bonds, those will become worthless in hyperinflation." Join Greg Hunter as he goes One-on-One with economist John Williams.