As people continue to digest breaking news out of Greece and around the world, the Godfather of newsletter writers, 90-year-old Richard Russell, cautioned that big money is now panicking as legendary economist John Williams issues a dire warning.
Legendary Economist John Williams Issues A Dire Warning
Richard Russell: "Of everything I read there is one item that bothers me, it’s the newsletter by John Williams titled Shadow Government Statistics. But strangely, I never see him quoted. Here’s what he says in his latest mailing:
"Broad outlook is unchanged: economy remains in downturn. Dollar faces massive decline with ongoing implications for a hyperinflation crisis. The US economy remains in ongoing downturn, while the US dollar faces a massive decline, with implications for a meaningful upturn in inflation evolving into a great hyperinflationary crisis. Signs of systemic instability are increasing anew."
Williams' report is based on cutting through the government and Federal Reserve propaganda and giving us the real facts. Williams believes that the US never grew out of the great recession and is still in recession.
The question I ask is why nobody is quoting Williams on the economy. His position is so different from the conventional wisdom that I think it constitutes news. It’s incomprehensible to me that no publication interviews Williams. Personally, I suspect that Williams' view of the economy is the correct one. Sooner or later what Williams is saying will be picked up by some widely read publication such as USA Today or the New York Times.
A Terrifying Hyperinflation
What makes me think that Williams is correct is that nobody will touch or broadcast his ideas. The American people know that something is wrong; you can’t fool all the people all the time. Ultimately Williams’ facts will become public. When that happens the Fed will open the flood gates in a frantic attempt to get the economy going again. With the Fed ramping up the economy by creating new trillions in fiat currency, the US economy will move into a state of hyperinflation.
Big Money Is Panicking
I think big money sees the picture and is expressing their fears by buying one-of-a-kind tangibles. You can see this reflected in the auction prices at Christy’s and Sotheby’s. At auction, works of art, gems, collectibles and apartments in New York are going at sky high prices, breaking records at every auction.
On another subject, the world is watching to see whether Greece leaves the Eurozone. Recently the president of Greece visited Mr. Putin in Russia. I think Greece is using Russia in an effort to get the best deal out of NATO and the Europeans. My unprofessional guess is that we will end up with a Greek exit from the Eurozone.
John Williams and Greece are the lightning bolts that hang over the world; the third is China’s desire to eclipse the dollar as the new world’s reserve currency. My answer to all of this is that God has plans for America. America is the hope of the individual and the hope of the civilized world. I tend to avoid scenarios, but if I was forced to produce one I’d look for a quick and temporary upside blow-off in the markets followed by the bear market that has been held in abeyance.
At the close the Dow had slipped under the big number of 18,000. Transports are down but are above 8,000. The Nasdaq was also down but above 5,000. There are 7 distribution days on the S&P and 6 on the Nasdaq, indicating that institutions are taking profits in this area. Gold is selling at 1173.0 while silver is selling at 15.84. I would urge all KWN readers around the world to subscribe to Richard Russell's 90 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.
***ALSO JUST RELEASED: The Greek Tragedy – One Of The Slowest Moving Train Wrecks In Financial History CLICK HERE.
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