John Williams, founder of ShadowStats.com, says, “The big factor here is the U.S. dollar and all sorts of things that impact that. The economy is probably the biggest. You also have the Fed policy. Right now, there is the presumption that the easing is over and they are going to raise interest rates. Guess what? If the stock market continues going as it is and the economy starts turning down, I think the Fed is going back to easing (money printing) again. They will use the economy as cover for its actions in trying to prop up the stock market and trying to prop up the banking system. The Fed’s primary function in life is to prop up the banking system. A weak economy is not good for the banking system. The economy is a sideline for it, and there is very little it can do, but it can use the weak economy as political cover for flooding the system with liquidity and keep the banking system afloat.” Williams goes on to say, “Any pull-back from the ‘taper,’ any shift in expectation, the Fed is going to have a QE 4, will tend to hit the dollar very hard. Along with that, a spike in gold prices and we’re off and running. . . . You are getting a confluence of extraordinary factors that are coming together that will cause the dollar to break. You’ll have a panic flight from the dollar along with dumping of U.S. Treasury bonds by foreign owners. We are coming in on the end game here.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist John Williams.
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