We’re in a New Recession -John Williams & Greg Hunter Video

By Greg Hunter’s USAWatchdog.com   

At the beginning of 2015, economist John Williams predicted the U.S. economy would continue to slow down to stall speed, but it is much worse than that. Williams explains, “I’ll contend we’re in a new recession and recognized likely to be timed from December of 2014. . . . The downturn in 2007 wasn’t recognized until the end of 2008. I think by the end of this year, people will recognize the economy turned down in December of 2014. I’ll tell you why I say that. There are a couple of very solid leading indicators . . . of the broad economy. One is industrial production. Industrial production contracted in both the 1st and 2nd quarter of this year. Those are the official numbers out of the Federal Reserve. Estimations for industrial production are for continued contraction. Industrial production used to be the GDP measure. . . . Retail sales contracted in the first quarter, adjusted for inflation. Year over year growth have dropped to levels you only see in a recession. It’s the same thing again with industrial production.”

So, what is the next move by the Federal Reserve? Williams says, “I think the Fed has lost control of the financial system. I don’t know quite what they are going to do, but they are not able to do what they want to do. They want to raise interest rates. They had an opportunity back in June . . . they announced rather formally . . . that they were going to raise rates in September . . . and that didn’t happen. The markets began to move around, and said they said the economy is too weak and were (the Fed) not going to do it.”

For people who thought the economy was fixed by the Fed after the 2008 financial meltdown, think again. Williams contends, “In 2008, the system was in crisis and in a crash. The financial system was on the brink of collapse—no question. Most people recognize that, and people like to forget it. We have never recovered from that. The Federal Reserve and the federal government did everything they could to keep the system from collapsing. . . . They keep the system afloat, but they didn’t do anything to fundamentally address the problems that got us there. So, the economy is still in trouble. The banking system is still shaky. The federal deficit is still there, and long term solvency issues are still there for the United States and are still in place. None of the big issues were addressed.

What the Fed did with all of its bond buying and money printing did not fix the system, and Williams says, “I think we are going towards a QE4. . . . All that is bad for inflation. There is a point here where the dollar is going to take a tumble.”

Join Greg Hunter as he goes One-on-One with economist John Williams, founder ofShadowStats.com.

(There is much more in the video interview.)

After the Interview:

Williams also warns that people should have some stored food and water in case of emergencies. A sudden economic meltdown could cause supply disruptions. There are some free updated statistics and information on the home page of ShadowStats.com. Williams also sells a subscription. It’s the same detailed reports he sells to fortune 500 companies and hedge funds clients. Click here to subscribe.

http://usawatchdog.com/were-in-a-new-recession-john-williams/