John Williams: Hyper-Inflation & Complete Demise of Dollar Coming
[youtube=https://www.youtube.com/watch?v=fZuHArvF1zU]
- John Williams: Hyper-Inflation & Complete Demise of Dollar Coming
by Greg Hunter’s USAWatchdog.com
Economist John Williams has been forecasting a dollar selloff for a few years. It now looks like the manipulators are running out of options to keep propping up the U.S. dollar. Williams explains, “I think we are going to see massive dollar selling ahead. We have problems here not just with the economy, but you have the Fed faced with a circumstance where the U.S. banking system and the global banking system was threatened with collapse in the panic of 2008. The Fed and the Treasury decided they did not want the system to collapse. . . . All they did was buy time. Now, that time has basically run out. The economy has not turned around.”
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One major indicator Williams looks at to see if the economy is getting better is the good old fashion help wanted ads that have now moved online. What does Williams see there? Williams says, “Beginning this year, it turned down and is negative year to year. It has just been plummeting, and it took a big hit in November. That is a leading indicator, and it shows that the economy is getting worse, and it is going to be worse in the near term.”
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So, as the economy turns down, the banks will come under pressure. Williams predicts, “Solvency stresses on the banks will mount. The Fed will come back as it needs to keep the banks afloat, and at the same time, it will also hit the funding needs of the U.S. Treasury. The weak economy means the tax revenues fall off, and then you will tend to see stimulus packages which tend to widen the deficit. Then, you will need to borrow more. . . . You are going to see a big widening of the trade deficit, which again is going to pressure the dollar. You have a confluence of factors now that are going to be working against the dollar, working against the U.S. economy and working against the solvency of the U.S. banking system. The Fed will give preference to the banking system, and as they move into a new easing mode, that’s going to kill the dollar and spike inflation. They will save the banks against any concerns about the dollar and inflation. They have to keep the banks afloat.”
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A dollar devaluation would actually be very good for America, and would work very well with Trump’s plan of building up American industry, as it would make American goods very attractive to export. Not so good for the American consumer importing from overseas, but hey, if they can buy stuff local at good prices, that will be even better for American industry.
On Wed, Dec 7, 2016 at 9:09 PM, Socio-Economics History Blog wrote:
> mosesman posted: ” John Williams: Hyper-Inflation & Complete Demise Dollar > Coming by Greg Hunter’s USAWatchdog.com Economist John Williams has been > forecasting a dollar selloff for a few years. It now looks like the > manipulators are running out of options to k” >