My Blog
John Williams - Onset of U.S. Hyperinflation
John Williams: Current projections on the federal budget deficit, U.S. Treasury funding needs, banking industry solvency stress tests, etc. all have been predicated on some form of economic recovery. There is and will be no recovery for the foreseeable future; and the negative implications of that for U.S. funding needs and for systemic stability should act as eventual triggers for massive dumping of the U.S. dollar.
September 14, 2010
Williams continues:
...The image of tap-dancing on a land mine pretty much describes what the Federal Reserve and the U.S. Government have been doing in order to prevent a systemic collapse in the last couple of years.
Now, as business activity sinks anew, much expanded supportive measures will be needed to maintain short-term systemic stability. Such official actions, however, in combination with global perceptions of limited U.S. fiscal flexibility, likely will trigger massive flight from the U.S. dollar and force the Federal Reserve into heavy monetization of otherwise unwanted U.S. Treasury debt.
When that land mine explodes — probably within the next six-to-nine months, the onset of a U.S. hyperinflation will be in place, with severe economic, social and political consequences that will follow.
...Already the longest and deepest economic contraction of the post-World War II era, the current downturn in the U.S. economy is re-intensifying, with no near-term stability or recovery on the forecast horizon.
...In these circumstances, the financial markets likely will be highly unstable and volatile. Holding assets outside the U.S. also may have some benefits.
Yes indeed the financial markets will be highly unstable and volatile. Let’s not forget, no recovery, more monetization and the threat of systemic collapse.
With the stock market near the end of this long rally, the mainstream media continues with the big lie, stating that we are in a recovery. The sad reality is that the nation is in fact on the brink of another crisis. As these types of cycles progress there is increased flight from paper assets. Get ready for another move higher in the fear index.
To subscribe to ShadowStats CLICK HERE.
Eric King
