Thursday, June 17, 2010

A Must Watch - Esteemed Economist John Williams & Peter Schiff discuss the CPIU Inflation Adjusted Value Of Gold & Silver

April 06, 2010 — Esteemed economist John Williams from and Peter Schiff of Euro Pacific Capital discuss the merits of owning precious metals. Gold and Silver as a hedge - as an insurance policy - against the increasingly certain, impending economic apocalypse. Williams cites $7,500 as being the CPIU inflation adjusted actual value of gold TODAY. $436/oz. is cited as the CPIU inflation adjusted value of Silver. Both agree the sky is the limit on precious metals as the Fed monetizes debt and the system as we know it begins to fall apart at the seams. God help us all. Buy silver and gold TODAY as some measure of protection for you and your family.

Walter J. "John" Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth's Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies.

Formally known as Walter J. Williams, my friends call me John. For more than 25 years, I have been a private consulting economist and, out of necessity, had to become a specialist in government economic reporting.

One of my early clients was a large manufacturer of commercial airplanes, who had developed an econometric model for predicting revenue passenger miles. The level of revenue passenger miles was their primary sales forecasting tool, and the model was heavily dependent on the GNP (now GDP) as reported by the Department of Commerce. Suddenly, their model stopped working, and they asked me if I could fix it. I realized the GNP numbers were faulty, corrected them for my client (official reporting was similarly revised a couple of years later) and the model worked again, at least for a while, until GNP methodological changes eventually made the underlying data worthless.

That began a lengthy process of exploring the history and nature of economic reporting and in interviewing key people involved in the process from the early days of government reporting through the present. For a number of years I conducted surveys among business economists as to the quality of government statistics (the vast majority thought it was pretty bad), and my results led to front page stories in the New York Times and Investors Business Daily, considerable coverage in the broadcast media and a joint meeting with representatives of all the government's statistical agencies. Despite minor changes to the system, government reporting has deteriorated sharply in the last decade or so. -- John Williams

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