Saturday, 30 April 2016

John Williams - Dollar will Blow Up and Collapse


Economist John Williams says it is not a matter of if, but when, there is panic dollar selling. Williams says the Fed would try to slow it down. Williams explains, “The Federal Reserve would step in and slow the pace to make it not appear like a panic. If you start to see a panic selloff (in the dollar), that’s a real bad sign. It means they are losing control of the system, and I think that is coming. The initial effect on the system for people living in the United States, as the dollar crashes, you will see inflation beginning to surge, particularly from oil and gasoline prices. Those effects will begin to spread in the system. It will change the way people look at things and will start the process that will eventually be a hyperinflation. The Fed does not have a way out of this circumstance. They have backed themselves into a corner. They have been keeping things reasonably stable, but they can’t get things going in the economy. . . . The economy is in terrible shape.”

Williams also says, “The dollar will blow up, and when I say blow up, it will collapse. There will be panic selling of the dollar, and that will intensify the inflation. The problem is they don’t have a way of avoiding it. If they could somehow get the economy back on track, they would have some room to work, I think, but the economy has never recovered.



The thing about the Fed is that they, and proxy central banks (Bank of Japan etc), can endlessly print money to buy up the Dollar if it faces a collapse. There might not be a dollar collapse, but one thing is certain, the domestic US economy is a basket case, where the place has degenerated into third world conditions (or is headed that way).

[Posted at the SpookyWeather blog, April 30th, 2016.]

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