muses of the moment

February 14, 2013

Interview with John Williams

Filed under: Hyperinflation, John Williams shadowstats, The Dollar Crisis — Tags: — totallygroovygirlfriday @ 1:50 am

Another great interview with John Williams of shadowstats.com. Click here. He explains why the official stats have no basis in reality and we are approaching a hyperinflation situation.

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7 Comments »

  1. What is HIS definition of hyperinflation?

    Comment by MikePhila — February 14, 2013 @ 8:12 pm

  2. You mean John Williams?

    Comment by totallygroovygirlfriday — February 15, 2013 @ 11:19 am

  3. And for the deflationists, here is an interesting interview with Nicole Foss. The interview starts at the 7 minute mark. Nicole defines inflation as money and credit relative to available goods and services. Over the past 30 years, we have had a massive credit expansion. We did not print money, we increased credit. So much credit has been created that it now represents 99% of the money supply. In essence, we increased excess claims to underlying “real” wealth.

    So we have been playing a giant game of musical chairs. There is only 1 chair [i.e. the “real” wealth] for every 100 people playing the game. While we are all up and dancing with the music, we do not notice how few chairs there are. But when the music stops, the people best positioned to understand the rules of the game [the banksters] will reach for a chair first. Everybody else will be out of the game. This crashing of credit by definition is deflation.

    Nicole does not define inflation as rising and falling prices. Prices follow changes in the money supply. Prices are a lagging indicator of the changes in this money supply.

    The contraction in credit is magnitudes larger than the money printing by the Fed.

    Comment by sw — February 15, 2013 @ 2:53 pm

  4. Hi gg,

    Your web site would not allow me to post a link to the Nicole Foss interview, I’m not sure why. The interview is posted on James Howard Kunstler’s web site.

    Select podcast
    “KunstlerCast #215: JHK is back – Nicole Foss interview”

    Comment by sw — February 15, 2013 @ 3:24 pm

  5. Podcast link here:

    http://kunstlercast.com/shows/kunstlercast-215-jhk-is-back-nicole-foss-interview.html

    May have to click and paste.

    gg

    Comment by totallygroovygirlfriday — February 15, 2013 @ 4:52 pm

  6. Gg,

    Yes. What is Williams definition?

    Comment by MikePhila — February 15, 2013 @ 11:27 pm

  7. Hyperinflation: Extreme inflation, minimally in excess of four-digit annual percent change, where the involved currency becomes worthless. A fairly crude definition of hyperinflation is a circumstance, where, due to extremely rapid price increases, the largest pre-hyperinflation bank note ($100 bill in the United States) becomes worth more as functional toilet paper/tissue or wallpaper than as currency.

    As discussed in Chapter 6—Historical U.S. Inflation and U.S. Dollar Debasement, the domestic economy has been through periods of both major inflation and deflation, usually tied to wars and their aftermaths. Such, however, preceded the U.S. going off the domestic gold standard in 1933 and abandoning international gold convertibility in 1971. The era of the modern fiat dollar generally has been one of persistent and slowly debilitating inflation.

    Comment by totallygroovygirlfriday — February 19, 2013 @ 2:03 pm


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