Economy In Severe Trouble – No Bank Bail-Ins, Inflation Instead – John Williams With Greg Hunter

by Greg Hunter
USA Watchdog

Economist John Williams says forget all the happy talk about the improving economy. Williams says “The economy is in severe trouble.” Williams goes on to say, “When you see a contraction as we had in the first quarter, given all the upside biases that the government puts into the series, you know the economy is in serious trouble. The second quarter was reported at 4% (GDP). They revised it up to 4.2%. That is not much of a revision, and it is barely significant when you consider there is a margin of error plus or minus three and a half percentage points. Early numbers we have seen on the third quarter suggests that the third quarter is going to be weaker. The numbers for the second quarter . . . do not support 4% growth. There is no way that is happening.”

With the mid-term election coming in November, can the government fake good numbers on the economy? Williams says, “They certainly could keep the numbers positive until Election Day. I would expect they will do that, although I don’t think that is reality. In fact, I know that is not reality. . . . Corrected for the bad inflation adjustment, the economy has plunged. It’s been bottom bouncing, and now it is turning down again. . . . The surprise here for the markets is the economy is not recovering. With that surprise, there are all sorts of nasty side effects. . . . The banks are in greater trouble than people think. . . . The budget deficit is going to be a lot worse than publicized. . . . There is going to be a lot of bad news that will be a direct result of the economy not recovering as advertised.”

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