"Beira o desastre. Déficit pior, vão imprimir mais. Mundo observa, desova dólar, que aí implode".
John Williams of Shadowstats.com predicts an explosion of U.S. debt. He says, “All the projections on the budget deficit are based on positive economic growth going forward. With the ongoing contraction, you’ll see a much worse budget deficit. It’s going to do bad things to the banking system
. The Fed is going to be easing, and they’ll say they are easing to stimulate the economy; but in reality, they’ll be doing this to prop up the banking system. The rest of the world sees this and they don’t want to hold the dollar, and they will sell off the dollar. The Fed is going to have to come in and prop up the system until it falls apart.” When someone starts selling, it’s going to be a race for the door, and I am looking for a dollar selling panic to be the trigger for the onset of hyperinflation.” What we are seeing in inflation now is a pickup in inflation, but it’s not a hyperinflation. Massive dollar selling–that will be the trigger for the hyperinflation.” 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.”
