Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and senior managing director of the Financial Services Group at Gilford Securities.
An economist is predicting the U.S. economic solvency crises of the last two years are just precursors to a great collapse: a Hyperinflationary Great Depression, Jerome Corsi’s Red Alert reports.
Corsi notes that economist John Williams of “Shadow Government Statistics” lists the following as factors contributing to the coming economic crisis:
- The Federal Reserve moving to monetize U.S. Treasury debt with its current policy of Quantitative Easing 2, or QE2, aimed at buying another $600 billion in Treasury debt;
- The U.S. dollar losing its traditional safe-haven status, while losing its reserve status, as the world moves to a new global reserve currency, most likely in the form of International Monetary Fund use of Special Drawing Rights;
- The federal government moving into what is effectively long-term insolvency, with GAAP-based (Generally Accepted Accounting Practices) showing total federal obligations at $76 trillion – more than five-times the level of U.S. GDP by the end of 2010;
- The weakness of political will in Washington, with Congress being unable to cut funding as severely as needed, especially when it come to the necessary slashing of unfunded liabilities in government social programs such as Social Security and Medicare.
Williams’ Hyperinflation Special Report (2011) warns the United States is about to experience once again the “stagflation” combination of low economic growth plus high inflation and high interest rates that came to characterize the presidency of Jimmy Carter in the late-1970s, but on a scale magnified many times over.
“With the Obama administration about to incur its third trillion-dollar-plus federal budget deficit,” Corsi wrote, “the question is: How much money will the Obama administration print?”
Williams explained, “Bankrupt governments – unable to raise adequate cash to cover obligations – invariably crank up the currency printing presses to do so, creating a hyperinflation.”
He contends that the Obama administration will print whatever amount of currency is needed to prevent an immediate systemic economic collapse, even if the inevitable consequences are the debasement of the dollar and the increasing of domestic inflation.
“The deliberate monetary and fiscal abuses have resulted in de-stabilizing selling pressures against the U.S. currency, in rising gold and silver prices, and in a nascent pickup in reported U.S. consumer inflation,” Williams observed. “That inflation has been driven by unhealthy monetary policy instead of healthy economic demand, and it should continue to increase in the months ahead.”
For more information on a possible Hyperinflationary Great Depression, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.“
Red Alert’s author, who received a doctorate from Harvard in political science in 1972, is the author of the No. 1 New York Times best-sellers “The Obama Nation” and (with co-author John E. O’Neill) “Unfit for Command.” He is also the author of several other books, including “America for Sale,” “The Late Great U.S.A.” and “Why Israel Can’t Wait.” In addition to serving as a senior staff reporter for WorldNetDaily, Corsi is a senior managing director in the financial-services group at Gilford Securities.
Disclosure: Gilford Securities, founded in 1979, is a full-service boutique investment firm headquartered in New York City providing an array of financial services to institutional and retail clients, from investment banking and equity research to retirement planning and wealth-management services. The views, opinions, positions or strategies expressed by the author are his alone and do not necessarily reflect Gilford Securities Incorporated’s views, opinions, positions or strategies. Gilford Securities Incorporated makes no representations as to accuracy, completeness, currentness, suitability or validity of any information expressed herein and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its display or use.