MAR 27, 2017
Economist John Williams of ShadowStats.com is renowned for accurate economic numbers that are realistic compared to other economists and what the Fed puts out.
John Williams says Williams says “The banks are still not healthy. . . . The Fed is still fighting the battle it effectively lost in 2008. Mr. Trump has several problems. One is the economy. One is the long term budget deficit, and the third is the Federal Reserve. The Fed lost control of the system. The system effectively collapsed. They haven’t been able to bring it back to normal.”
Williams says Trump must address the “long term solvency of the United States.” Williams goes on to say, “If he does this, the rest of the world will say, boy, they brought things under control, and they would be happy to own the Treasury bonds. I don’t know if this can be done, but this is what you got to do.”
If Trump does not succeed, Williams says, “The problem will be with the dollar. If the system is not brought under control, the rest of the world is going to dump the dollar. . . . The underlying fundamentals have not changed. The U.S. dollar is, in the long term, insolvent. What has changed here is that there is a chance that the Trump Administration can correct it. As far as I can see, this (Trump) is the last chance to correct it.”