We’re Screwed!

ShadowStats.com founder John Williams explains the risk of hyperinflation. Worst-case scenario? Rioting in the streets and devolution to a bartering system.

Do you believe everything the government tells you? Economist and statistician John Williams sure doesn’t. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government’s economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.

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I’ve been saying for decades that eventually the Fed’s will have kick a lot of what they owe to the curb.  Once that’s done the Fed’s will issue ‘new dollars’.  Translation:  If you have say $20 ‘old dollars‘ in your pocket those dollars will be traded in for $1 ‘new dollar’.

So if you’ve got thousands or millions of dollars squirreled away you’re gonna be in all sorts of trouble. Yes the ‘new dollars’ will actually be worth something for a short while, (Until devaluation begins with them) but the new value won’t by any stretch make up for your losses with the ‘old dollars’.

Unless or until the US goes back on the gold standard with gold to back up each dollar printed it will never in the long run get any better.  Don’t however look for that to happen. We have now been in the ‘quick fix stage’ since WWII.  We know the quick fix doesn’t actually fix anything, but it looks good on paper and makes great talking points.

It’s all done with smoke and mirrors and pay no attention to the man behind the curtain.