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John Williams: Hyperinflation and Depression – The Hidden Truth Within Our Economic Data

Tom welcomes economist John Williams, the founder of Shadow Government Statistics to the show. Williams shares his background in economics and economic modeling, which led him to scrutinize government statistics due to their potential inaccuracies. He became particularly concerned with employment data revisions and manipulation. Despite improvements, he remains skeptical about inconsistencies’ impact on forecasting accuracy.

Williams discusses the misrepresentation of inflation through changes in reporting methodologies, such as the Consumer Price Index (CPI). This underreporting of inflation affects cost-of-living adjustments and pension payouts, leaving retirees facing significant financial challenges. The pandemic exacerbated these issues with distorted CPI reporting.

He also criticizes the current economic situation’s representation through GDP growth rates, which may not accurately represent underlying economic conditions. Inflation can lead to an increase in reported real GDP without actual sales growth. The excessive money supply injected into the economy during the pandemic is another major contributor to inflation.

Despite attempts to control inflation through interest rate hikes, the economy has suffered negative growth in critical sectors like retail sales, industrial production, housing, and employment. The Federal Reserve prioritizes the banking system over the economy, making high interest rates more beneficial for banks than for consumers. The historically large disparity between Gross Domestic Product (GDP) and Gross Domestic Income (GDI) further highlights a weak economy.

John predicts that despite rising GDP, there is a potential worsening in the next six months with underlying economic downturn and potential high or even hyperinflation. He advises holding precious metals like physical gold and silver as a hedge against inflation and preserving purchasing power during these uncertain times. Gold has been an effective hedge against inflation over the last 40 years, although it can also be manipulated.

Williams believes that the Federal Reserve will continue to intervene with monetary policies despite their inflationary effects. He encourages listeners to visit for more information and to contact him directly at His website was recently taken down, but the old site remains accessible for background information.

Talking Points From This Episode

  • Government statistics, particularly inflation data, can be manipulated and underreported, leading to inaccurate economic representations.
  • The Federal Reserve’s priority is keeping the banking system afloat rather than addressing underlying economic issues, causing negative consequences for consumers.
  • The Gross Domestic Product (GDP) may not accurately represent economic conditions as it can be artificially boosted by inflation and government interventions.
  • Precious metals like gold serve as a hedge against inflation and help preserve purchasing power during uncertain economic times.

Time Stamp References:
0:00 – Introduction
0:38 – Background in Business
4:15 – Models Being Redefined
12:08 – Inflation Reporting
17:26 – Releases & Revisions
25:25 – Redefining Everything
33:12 – Inflation Vs. GDP
35:37 – Inflation Causations
37:36 – Money Supply Measures
46:56 – Real Economic Outlook
50:39 – Gold – Inflation Hedge
52:35 – Fed & The Next Crisis
54:53 – Debt to GDP & Rates
59:15 – Wrap Up

Guest Links:

Walter J. “John” Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth’s Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies.

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