John Williams Gives Dire Warning
John Williams of Shaddowstats.com
We post a lot of economic information on Prepper Recon.com. If you have little interest in economics, please at least try to watch the videos as understanding these principles are just as important to your ability to plan for and survive the coming crisis as any other aspect of prepping.
John Williams delivers a dire warning in this short 15 minute video. He talks about the threats of a loss of confidence in the US dollar that will likely cause a run on the dollar. As people seek to get out of dollar denominated assets like paper currency and US treasuries, commodities like oil, metals and food will be subject to a hyperinflationary run. John Williams recommends purchasing gold and silver prior to the beginning of such an event to hedge yourself . He also recommends purchasing the goods that are going up in price, which you know you will consume. He points out that this is a much better return than US Treasuries that have a real negative yield after subtracting inflation.
John Williams is an economist and creator of Shaddowstats.com. Shaddowstats.com seeks to give accurate measurements on economic statistics that are manipulated by government agencies. For example, the unemployment rate that is reported by the Bureau of Labor Statistics on the first Friday of each month has very little to do with the amount of people who are not working because they have no job. When people who have quit looking for work because they have given up, people who have found some way to qualify for disability and those who took early retirement because they couldn’t find jobs are added in, the real unemployment number is around 23%. The sugar coated number given by the BLS is 7.8%. Similar methods are used when the government reports inflation. Government inflation numbers use “hedonics” which allow them to adjust costs down by saying that you derive more enjoyment from a more expensive product. Let’s say you paid $500 for a computer 5 years ago and a similar model is now $800. Since it is faster, it is worth more, therefore, there is no inflation. They also use substitution. This concept says since steak went from $3 a pound, to $9 around, you will substitute hotdogs for steak, therefore there is no inflation. The government number is manipulated to 2% inflation while Shaddowstats.com reports the real number to be closer to 6%.
This is seen as a necessary evil to the government as reporting the real numbers would likely trigger a panic. People would start hoarding food, buying gold and silver, planting gardens, stocking up on guns and ammo and everything else Prepper Recon recommends if they knew the truth. In this interview with USA Watchdog, John Williams says he expects the average person to start waking up to the real state of the economy despite the government’s best efforts to tell them everything is just rosy. He goes on to explain that the economy never really recovered. I know this is probably a shock to everyone reading who thought things had really gotten much better. As it turns out, the GDP as reported by the government is also manipulated. If you remove all of the stimulus from government borrowing and and Fed money printing AKA QE, GDP is much nearer to zero or a negative number than we have been led to believe.
I hope you enjoyed this post. Leave us some feedback and let us know what sources you use to find out the potential threats we are facing.
Have a blessed day and happy prepping!
