John Williams Exposes Government Lies | McAlvany Interview

John Williams: Number one would be that the economy has not recovered, and is not about to recover. The underlying basics with consumer liquidity show that the consumer has no ability to drive a sustainable growth in consumption. The reason people have seen in the headlines a reported recovery is that the government understates inflation. That is another very big point. Most people, when they try to estimate inflation, or look for inflation, are looking at it from the standpoint of setting investment goals, or what their income needs to change by.
Because of the inflation understatement, that affects the way the economy gets overstated. If you use too low of a rate of inflation in adjusting the economic numbers, the economic numbers get overstated.
The third issue, and these all combine into a rather unfortunate circumstance, is that when you look at gap-based accounting, the way that a major corporation usually would report its operations, the federal government is bankrupt and running an annual deficit close to 7 trillion dollars. That includes the year-to-year change in the unfunded liabilities, but that number, that present value, is the cash you have to have in hand today to cover the shortfall into the future. Nobody is looking at bringing that into balance, and if they don’t bring it into balance very rapidly, we will see the dollar collapse and we are going to go into a hyperinflation.