by Greg Hunter
USA Watchdog
Economist John Williams, founder of ShadowStats.com, says the economy is much weaker than it appears. Williams cuts through the phony gimmicked government numbers to give a true economic picture. His analysis shows the economy is already slowing down anew. This is why the Fed just announced it will not be ending the massive money printing and start the so-called “taper” anytime soon. Williams explains, “What they are doing right now is trying to keep economic activity from collapsing. At the same time, all that they are doing in the way of spending and what the Fed is doing with all this money creation is triggering inflation. Inflation in the GDP was at a 40 year high. This is not a good sign because the inflation is difficult to bring under control once it’s out of control. We are getting very close to that. . . . Inflation is around 13% the way I measure it.”
Is the inflation going to be “transitory” as the Fed keeps telling us? Williams says “No,” and goes on to say, “Inflation keeps going up. In Social Security, you might get a 7% bump, but you might be at 20% inflation next year. I think we are still at high risk of this evolving into a hyperinflation. Fed Head Powell just said inflation could be more serious than they are projecting, but if the Fed was convinced of that, they would take action to bring it under control. We will see what happens.”