John Williams - Onset of U.S.
Hyperinflation
Eric King
KingWorldNews.com
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.
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.
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