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.
Thats what i was saying about 2 months ago that the economy had basically stabilized awhile back and was bottom bouncing. Who knows when the 2nd leg down will hit, but I don't think we are there yet.
ReplyDeleteI am not sure that he knows the half of it.
ReplyDelete1. The TARP covered what the banks did from 2001 to 2003. That was just the beginning of their misbehavior. It covered less than 1 trillion dollars of misbehavior.
2. The subprime and other garbage loans didn't reach its peak until 2007. Loans adjust 3-5 years after they are issued. That means that we are about to go into the next phase of the housing debacle which will be far worse than the first wave that brought on the TARP.
3. The TARP legislation has a clause in it that allows Geitner and his cronies in the fed to lend up to $4 trillion to the banks. It contains the requirement that the banks be able to repay both the principle and the interest, but since the terms are not spelled out in the legislation, that requirement is easy to wink away. The $4 trillion approximately reflects what is left to the housing mess. It is also a reflection of Barney Frank's loyalties.
4. We have not talked about all of the commercial real estate that needs to be refinanced by banks that can't do it because the holes in their balance sheets are the size of the grand canyon.
5. Debt has sickened the economies all over the world. To fix it, all of them are spending more and getting further into debt.
The next wave is coming. The wave that hits New York will wash over the Rockies and down the Sacremento valley.
Warren Buffett is saying the same thing--that two more bubbles will burst... Soon.
ReplyDeleteWe must stop buying everything from other countries and start manufacturing more of our own goods.
We must stop subsidizing Monsanto's on-going poisoning of our food ie GMO corn.
We must bite the bullet and stop spending beyond our means--which includes Congressional spending.
And, we must stop the free ride through life for the first, second, third, and now fourth, generations of entitlement receivers.
Enough!