Tyler Durden of Zerohedge has an important piece about John Williams of Shadowstats and his (hyper)inflation forecast. John Williams is a data geek who understands economics. His forecasting abilities should not be ignored.
There is nothing worse than hyperinflation. A Great Depression without hyperinflation is a blessing compared to the effects of hyperinflation. Hyperinflation makes a Great Depression unavoidable. With a hyperinflation, people enter the Great Depression without any savings and in an environment where prices are rising rapidly. It is much worse than a “traditional” Great Depression where prices are falling and savings has not been wiped out.
Mr. Bernanke’s latest policy decision of more QE puts us that much closer to this terrible event.
Here is Mr. Durden’s piece with ample quotes from Williams:
John Williams, who runs the popular counter government data manipulation site Shadowstats, has thrown down the gauntlet to deflationists, and in an extensive report concludes that the probability of a hyperinflationary episode in America over the next year has reached critical levels. While the debate between deflationists and (hyper)inflationists has been a long and painful one, numerous events set off in motion by the Bernanke Fed (as a direct legacy of the Greenspan multi-decade period of cheap and boundless credit) may have well cast America as the unwilling protagonist in the sequel of the failed monetary policy economic experiment better known as Zimbabwe.
Williams does not mince his words: