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3.9% GDP Nonsense; Dollar Turns Sharply Soon – John Williams

Friday, December 5, 2014 16:14

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(Before It's News)

TND Videocast Spotlight: Greg Hunter’s USAWatchdog.com

Economist John Williams is not buying the recent 3.9% GDP upward revision. Williams explains, “No one I know thinks we are growing at 3.9% other than they are trying to sell a bill of goods to the markets, specifically the currency markets. 3.9% is nonsense. You had 4.6% growth in the second quarter and 3.9% in the third. Here you had two quarters at close to 4%, and we have not seen anything like that since 2003. This is the strongest economy we have seen in 11 years, and I can tell you Main Street USA is not seeing that. . . . If you understate inflation, which the government does, you overstate inflation adjusted growth, and that is probably the biggest problem in the GDP report.”

Recently, the U.S. deficit passed the $18 trillion mark, but using honest accounting, Williams says the debt picture is much worse, “Using generally accepted accounting principles with expenses and obligations, what you are seeing is the actual deficit. Instead of being half a trillion dollars last year, it was more like $6 trillion in the same length of time. The gross federal debt right now is $18 trillion. If you add on the unfunded liabilities such as Social Security and Medicare, you are approaching $100 trillion in terms of total federal obligation. There is just no way that can be covered. . . . The government, long term, is bankrupt.”

That brings us to the U.S. dollar. Williams says, “Right now, we have a big distortion in the market, and that is the strength of the U.S. dollar. I contend the dollar should be getting much weaker, and indeed it’s going to turn very sharply very soon, and that will be an approximate trigger for a major upturn in inflation. The reason the dollar is strong right now . . . the U.S. economy is booming, if you believe the statistics. Main Street USA doesn’t believe the statistics. The rest of the world is in recession, and guess what? We’re in recession too. We’re just not reporting the numbers as accurately as the rest of the world.”

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

After the Interview:

There is free information on John Williams’ site. Click here to go to the home page of ShadowStats.com. Williams also provides paid subscriptions where he posts analysis on a variety of economic subjects every week. His subscriptions are $89 for six months, or $175 annually for his detailed analysis. Click here to become a ShadowStats.com subscriber.

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About Greg Hunter:

Mr. Hunter 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.