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Dollar on the Brink of Disaster-John Williams

Sunday, May 18, 2014 21:19

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(Before It's News)

TND Podcast Spotlight: By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Economist John Williams has a dire prediction for the U.S. dollar. Williams says, “I don’t see what will save it at this point. . . . Now we are to the point that the dollar has been ignored for years. The federal deficit has been ignored for years. . . . That’s what we are on the brink of disaster with, and that is what has to be addressed now, and that’s not happening.” Williams also contends, “The way I see it, the dollar could go to zero in terms of its purchasing power. You don’t want to have your assets in U.S. dollars.” How are we going to get there? Look no further that the dismal first quarter gross domestic product (GDP) numbers that officially only eked out .1% growth. This is one of the reasons why Williams thinks a “renewed broad economic downturn continues to unfold.” Williams goes on to say, “We’re turning down a new. The first quarter should be revised to negative territory, and I believe the second quarter will be reported negative as well. That will happen by July 30 when you have the annual revisions to the GDP. In reality, the economy is much weaker than that . . . . Generally, when you adjust for inflation and you use too low of a rate for inflation, that overstates the economic growth.”

Williams says the government rigs the economic numbers, and it gives a false impression of recovery. When you remove all the accounting gimmicks, Williams says, “Starting with the recession that started with the end of 2007. . . . in reality, it was more of a plunge and then stagnation. . . . What we’re seeing is we’ve been stagnant and bottom bouncing and maybe a little bit higher, but we are turning down again. The reason for this is the consumer is strapped and doesn’t have the liquidity to fuel growth in consumption. Median household income, net of inflation, is as low as it was in 1967. The average guy is not staying ahead of inflation. For decades, you could get consumption from the future by borrowing more money and expanding your debt. That all blew apart in 2007 and 2008. Now, you don’t have the ability to borrow money the way you used to, and without that, there is no way consumption can grow faster than the rate of inflation. . . . There is no way you can have positive sustainable growth in the economy without the consumer being healthy. It’s just not going to happen.”

Click here to read the rest of Greg Hunter’s write-up and to access the active comment section.

After the interview:
John Williams sells a financial newsletter. It is $175 per year. You get at least one in-depth report per week. If you would like to subscribe, please click here. There is also free information that is continually updated on the Shadowstats.com homepage. Click here to go there.

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About Greg Hunter: Greg is the producer and creator of Greg Hunter’s USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. Greg Hunter’s USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows. Greg encurages feedback and welcomes comments. You may also support USAWatchdog.com by clicking here to donate. Reprinted with permission.