Sunday, August 8, 2010

Esteemed Economist John Williams of Warns About Fed Policy Which Will Create HyperInflation

QE2 to Infinity & beyond - Helicopter Ben Bernanke

GoldSilver Link | Original Source Link
John Williams, Shadow Government Statistics: Times That Try Our Souls


The government is effectively bankrupt. Using GAAP accounting principles, the annual deficit is running in the range of $4 trillion to $5 trillion. That's beyond containment. The government can't cover it with taxes. They'd still be in deficit if they took 100% of personal income and corporate profits. They'd also still be in deficit if they cut every penny of government spending except for Social Security and Medicare. Washington lacks the will to slash its social programs severely, to change its approach to ever bigger government. The only option left going forward is for the government eventually to print the money for the obligations it cannot otherwise cover, which sets up a hyperinflation.

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