Posted on 05/24/2021 4:53:10 AM PDT by blam
Economist John Williams, founder of ShadowStats.com, says the Federal Reserve has painted itself into such a tight corner with the economy it really has only two choices. Williams says it comes down to “Inflation or Implosion.” What would happen to the financial system if the Fed stopped printing massive amounts of money for stimulus and debt service? Williams explains, “You could see financial implosion by preventing liquidity being put into the system.
The system needs liquidity (freshly created dollars) to function. Without that liquidity, you would see more of an economic implosion than you have already seen. In fact, I will contend that the headline pandemic numbers have actually been a lot worse than they have been reporting.
It also means we are not recovering quite as quickly. The Fed needs to keep the banking system afloat. They want to keep the economy afloat. All that requires a tremendous influx of liquidity in these difficult times.”
So, is the choice inflation or implosion? Williams says, “That’s the choice, and I think we are going to have a combination of both of them. I think we are eventually headed into a hyperinflationary economic collapse. It’s not that we haven’t been in an economic collapse already, we are coming back some now. . . .
The Fed has been creating money at a pace that has never been seen before. You are basically up 75% (in money creation) year over year. This is unprecedented. Normally, it might be up 1% or 2% year over year. The exploding money supply will lead to inflation. I am not saying we are going to get to 75% inflation—yet, but you are getting up to the 4% or 5% range, and you are soon going to be seeing 10% range year over year
(snip)
(Excerpt) Read more at usawatchdog.com ...
David Rosenberg: "A Whole Bunch Of People Are Really, Really Wrong" About Inflation
"Rosenberg essentially agrees with Fed Chairman Jerome Powell that the recent acceleration in inflation seen in April will be temporary."
So if the world economy collapses can we FINALLY close the border????
Excellent analysis..
If we add cryptocurrency created to the mix, it’s already begun.
We have had inflation for a few years it just has been hidden...
Look at food prices.....you use to get a pound of cookies now you might get 10 oz
Maybe, but this dude has been predicting hyperinflation is right around the corner for his whole career:
http://www.shadowstats.com/article/hyperinflation
Eventually he may stop being wrong, but not much of a current track record.
He's unclear on the concept. The relationship between money supply and inflation is nonlinear and many other factors are involved. We can have large money supply increases and still get deflation. But right now with an inevitable economic rebound, free walking around money especially for leftist organizations, and scarcity of employees and goods, we are going to get a burst of inflation which will turn into psychological inflation. The 75% inflation he is talking about is not related to the money supply, but comes from people who are holding money and want to get rid of it as quickly as possible.
We should read dire John Williams economic articles with some of his best scary music:
https://www.youtube.com/watch?v=-bzWSJG93P8
Thanks for posting a counter-argument. Threads like this one are more informative when we get to hear both sides of the story.
It’s very simple. When the new bill comes off the presses and has 1 written on it, it actually represents 50 cents and requires two of them to equal what you had in the first place. People don’t understand that the bill by itself is not a piece of worth, it represents something that does. In the case of the US, basically gold which sets the standard. If you have a dollar’s worth of gold, you can do it a number ways, a bill, four quarters, two fifty cent pieces, 100 pennies, or a combination of any or all these. But you can’t make it into two dollars by printing a bill. And this is what the government is selling. More is not better.
wy69
According to the article, "What would happen to the financial system if the Fed stopped printing massive amounts of money for stimulus and debt service?
Williams explains, “You could see financial implosion by preventing liquidity being put into the system.
The system needs liquidity (freshly created dollars) to function.
Without that liquidity, you would see more of an economic implosion than you have already seen.
In fact, I will contend that the headline pandemic numbers have actually been a lot worse than they have been reporting.
It also means we are not recovering quite as quickly." (My Comment): this is what happens in a Socialist economy, leading to its collapse.
At some point you run out of new liquidity, called "other peoples money", or you keep producing currency on such a massive scale which everyone realizes has no intrinsic value .
It gives real meaning to 'spreading out the misery', and results in stagflation, and shortages of most common products.
The only economic protection is investments in precious metals.
Brass & Lead (Ammo) are the best “precious metals”.
The communists running the government want a hyperinflationary economic collapse. It is what we will get. This is also predicted in Revelation.
But...pay increases weekly really jump the career pride!
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