On February 6th, consulting economist John Williams (of ShadowStats.com) made an extraordinary appearance on the King World News Radio that must not be ignored. Williams calculates economic data without the bogus schemes utilized by the federal government. He's now forecasting that the United States will not only fail to enter into a recovery, but the current downturn will get worse.
He's saying that we have been "bottom-bouncing" for almost a year now and that we're about to dip even lower. Williams believes that there is no life in residential real estate, the fourth quarter GDP increase will not continue, the banks will have solvency problems and the GDP will be negative for 2010.
John Williams is saying that the "downturn is structural in nature." He sees California collapsing and forcing the federal government into an impossible decision:
1) Rescue California and bankrupt the Federal Government
2) Let California crash and let it drag us down with it.
The most disturbing part of the interview is when John talks about the fall of the dollar. Although, he doesn't know when it will happen, he is convinced that it could happen quickly.
Listen up, guys!
There are some very intelligent people out there talking about what's really going on with the economy. If you've been preparing, step it up! NOW!
Please listen to this interview.