Original title: economists say the Fed is in trouble and has only two options

Williams, economist and founder of ShadowStats.comThe (John Williams) said the Fed had put itself in economic trouble and had only two choices: inflation or an economic implosion.

He said that if the Fed stopped printing large amounts of money to stimulate the economy and repay debt, there would be no liquidity in the financial system, which could lead to the implosion of the financial system. The financial system needs liquidity to keep it working, and a lack of liquidity will lead to a more serious economic collapse.

In fact, he believes that the actual death toll from the epidemic is much worse than reported, which means that the economy is not recovering so quickly. If the Fed wants to maintain the normal operation of the banking system and the economy, it must print a lot of money.

So is the US economy heading for (hyperinflation) or implosion? Williams believes that it is possible to experience both difficulties at the same time. He said:

"I think this is not the first time that we will eventually fall into a hyperinflationary economic collapse. The Fed has been printing money at an unprecedented rate. Currency issuance is up 75 per cent year-on-year, which would normally be 1 per cent or 2 per cent. The soaring money supply will lead to inflation. This is not to say that inflation will grow by 75% year-on-year, but 4% or 5% is possible, and it may even be 10% in the near future. The Fed can no longer control inflation. And when they have to admit that the inflation rate is 10%, I estimate that the index will rise to 15% or more. "

Currently, Shadowstat.com shows an inflation rate of more than 11%. This is calculated according to the method before 1980. Since then, the government has been using tricks to make inflation look lower than it really is. Shadowstats.com 's figures strip out all the gimmicks, which is now the real inflation rate, not the 4.25% recently officially announced.

'inflation already exists, and the best way to fight it is to buy tangible assets, 'Mr. Williams said. He said:

Physical gold and silver are the best ways to protect long-term purchasing power. But for most people, gold may be a little expensive, while silver is relatively cheap. But in fact, in the end, the price of everything will go up. "

When will the worst inflation hit the United States? Williams predicted that hyperinflation could occur at the beginning of 2022 and the economy would collapse.