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Shadowstats’ John Williams: Prepare For The Hyperinflationary Great Depression

Posted By admin On December 15, 2009 @ 5:27 am In Money Watch | Comments Disabled

Tyler Durden
Zero Hedge [1]
Tuesday, Dec 15th, 2009

John Williams, who runs the popular counter government data manipulation site Shadowstats [2], has thrown down the gauntlet to deflationists, and in an extensive report concludes that the probability of a hyperinflationary episode in America over the next year has reached critical levels. While the debate between deflationists and (hyper)inflationists has been a long and painful one, numerous events set off in motion by the Bernanke Fed (as a direct legacy of the Greenspan multi-decade period of cheap and boundless credit) may have well cast America as the unwilling protagonist in the sequel of the failed monetary policy economic experiment better known as Zimbabwe.

Williams does not mince his words:

The U.S. economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the U.S. dollar, a collapse in the normal stream of U.S. commercial and economic activity, a collapse in the U.S. financial system as we know it, and a likely realignment of the U.S. political environment. The current U.S. financial markets, financial system and economy remain highly unstable and vulnerable to unexpected shocks. The Federal Reserve is dedicated to preventing deflation, to debasing the U.S. dollar. The results of those efforts are being seen in tentative selling pressures against the U.S. currency and in the rallying price of gold.

And even as Bernanke continues existing in a factless vacuum where he sees no asset bubbles, Williams takes aim at the one party almost exclusively responsible for the economic carnage that will soon transpire:

The crises have been generated out of and are centered on the United States financial system, triggered by the collapse of debt excesses actively encouraged by the Greenspan Federal Reserve. Recognizing that the U.S. economy was sagging under the weight of structural changes created by government trade, regulatory and social policies — policies that limited real consumer income growth — Mr. Greenspan played along with the political and banking systems. He made policy decisions to steal economic activity from the future, fueling economic growth of the last decade largely through debt expansion.

Full article here [1]


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URL to article: http://www.prisonplanet.com/shadowstats-john-williams-prepare-for-the-hyperinflationary-great-depression.html

URLs in this post:

[1] Zero Hedge : http://www.zerohedge.com/article/shadowstats-john-williams-prepare-hyperinflationary-great-depression

[2] Shadowstats: http://www.shadowstats.com/

[3] ShadowStats.com Founder John Williams Explains the Risk of Hyperinflation: http://www.prisonplanet.com/shadowstats-com-founder-john-williams-explains-the-risk-of-hyperinflation.html

[4] John Williams Discusses The Reasons For The Upcoming Dollar Dump: http://www.prisonplanet.com/john-williams-discusses-the-reasons-for-the-upcoming-dollar-dump.html

[5] John Williams Sees The Onset Of Hyperinflation In As Little As 6 To 9 Months As Fed “Tap Dances On A Land Mine”: http://www.prisonplanet.com/john-williams-sees-the-onset-of-hyperinflation-in-as-little-as-6-to-9-months-as-fed-tap-dances-on-a-land-mine.html

[6] BIS Calls for Hyperinflationary Depression?: http://www.prisonplanet.com/bis-calls-for-hyperinflationary-depression.html

[7] “The Prevailing Debate Among Economists and Historians is Whether the World Economy Faces the ‘Great’ Depression of the 1930s or the ‘Long’ Depression of the 1870s”: http://www.prisonplanet.com/%e2%80%9cthe-prevailing-debate-among-economists-and-historians-is-whether-the-world-economy-faces-the-%e2%80%98great%e2%80%99-depression-of-the-1930s-or-the-%e2%80%98long%e2%80%99-depression-of-the-18.html

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