muses of the moment

January 6, 2014

Two interviews

Greg Hunter over at usawatchdog.com has two good interviews. Each are about 30 minutes.

One with Gerald Celente. Click here.

One with John Williams. Click here.

They each update their thoughts on 2014 trends and predictions.

groovygirl follows John Williams at shadowstats.com. remember that John’s definition of hyperinflationary depression is an economic downturn that is triggered by a deflation in debt (debt unavailable and/or too expensive) and an inflation in expenses (especially living expenses and commodity-related needs). There can be inflation in assets, but assets that are dependent on new debt creation (such as housing) will be under pressure long-term.

In gg’s opinion, we have been in this situation since 2006-2007, but creative accounting and money printing has masked the truth. At some point, we will have another round. Investors will either not believe the numbers and sell in a panic, we will have a trigger in the shadow banking system that spreads to other markets which occurred in 2008-2010 and investors have to sell assets to cover other debt obligations.

We still have a global economic balance sheet problem. Money printing and creative accounting solved the cash flow problem, but only temporarily.

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