Greg Hunter – Economist John Williams says the economy is in deep trouble, and the Fed knows it. Williams says the Fed talking up “robust economic growth” that is causing inflation is “nonsense.”
Williams explains, “The one thing that is not causing inflation is ‘robust economic growth.’ So, when they talk about raising interest rates to kill this robust economic growth that’s triggering the inflation, that’s absurd, and the Fed knows it. . . .
Greg Hunter – Economist John Williams warns the Federal Reserve has painted itself into a very tight no win corner. No matter what the Fed does with rates it’s going to be a disaster. Williams explains, “You had some very heavy selling towards the end of the year and when you saw the big declines in the stock market you also saw that accompanied by a falling dollar and rising gold prices. That was foreign capital which was significant fleeing our markets.
So if the Fed continues to raise interest rates, and they want to do and they still don’t have rates where they want them, it’s going to intensify the economic downturn. That’s going to hit the stock market. If they stop raising rates . . . and they have to go back to some sort of quantitative easing, that’s going to hit the dollar hard.
Greg Hunter – Economist John Williams says the recent rate hikes mean the “Fed is killing off the economy.”
Williams says, “I heard President Trump make some comments to that effect, and he’s right. The Fed is trying to raise rates. The idea is if you get higher rates, the banks will be able to make more profits on their lending. It will also encourage bank lending. Unfortunately, on the consumer end, it raises the consumers’ cost of borrowing as interest rates go up. It makes mortgages more expensive. It makes borrowing more expensive.
https://youtu.be/p20AxBt-YD4
Mortgages go up, people don’t buy as many houses. What you are seeing right now is effectively a recession in the housing market, in the construction area. Existing home sales have been down for six or seven months in a row, and it’s down year over year.” Continue reading
Greg Hunter – Economist John Williams says if Hillary would have won the 2016 election, we would “most likely be in a full blown depression.” The problems in the economy started long ago no matter who was elected. Williams says, “I would contend we were already in a recession at the end of the Obama Administration. That’s one reason why Donald Trump got elected.”
Williams says another negative for the economy is resistance on both sides of the aisle of swamp creatures who do not want to pass legislation so Trump can bring home better jobs. Williams says, “Their motivation is not to provide those jobs.” So, Congress is working against “We the People,” and Williams goes on to say, “Yes . . . Yes, let me put it this way. Mr. Trump was something of an anti-establishment candidate, and the establishment had been in place on both sides of the isle for a long time. . . .
https://youtu.be/y9sKiQeId-Y
“Now, you have someone who is going to change the approach, one that is needed to get the system back on stable footing. As a result, you have extraordinary turmoil in the press and a lot of opposition in Congress on both sides of the isle.
Greg Hunter – Economist John Williams is putting out a rare “Alert” on his popular ShadowStats.com newsletter. What does Williams see that scares him? Williams explains, “There are several factors.
Number one, I think we are at risk of an extreme market reaction just tied to the economy slowing down unexpectedly against headline expectations. That is going to mess up the Fed’s planning for raising rates and liquidating their balance sheet. That is going to force them back to quantitative easing (money printing).
https://youtu.be/-9AkBU6c3Ec
That, in turn, will savage the dollar. As the dollar plummets, so will U.S. stock prices. They are heavily supported by the influx of capital from abroad. . . . Given the underlying fundamentals in the markets and in the economy, I think all the components are in place for one of the great financial panics of all time.” Continue reading