John Williams of Shadowstats.com returns to the show with dire comments on the domestic economy.
Headline inflation is understated by opaque statistical methods, making national output seem much more robust than reality.
Dollar strength is supported by the perception of economic recovery, but a stealth recession looms.
Once the the public recognizes they've been duped and panic ensues, his models indicate that gold and energy investments will ascend to inspirational heights.
John Williams thinks investors should ignore the FOMC; even if officials raise rates in September and again in December, the markets have already discounted the event.
His constructs all foretell of a singular, inevitable outcome - global hyperinflation.
Dr. Leeb and the host discuss the opportunity for every nation to extend friendship, embrace and glean pearls of wisdom from the second largest economic powerhouse, China to garner synergies across this national borders.
Dr. Leeb applauds China's initiative, in particular the recent 2015 stock market crash of 30% in only 3 weeks (PEK) was offset via swift intervention.
The host agrees with Dr. Leeb's stance on gold backed currencies - it is an inevitability that price will adjust to reflect the true intrinsic value.
The discussion turns to the 2,500 year old book of wisdom, The Art of War by Sun Tzu (Free .pdf copy here).
Dr. Leeb suggests the story of Ah Q, based loosely on reality, a China folk hero who overcame the slings of false accusations, slander and belittlement.
By understanding the wisdom of respect and fair treatment, Western officials, diplomats and business people can build synergies with China.
The duo discuss a concept posed in Wealth Building Strategies, Waltzek (2010), where officials could have directed the credit crisis related, trillions of dollars in bailout funds directly to struggling homeowners, and restored the financial system by reenacting the Glass-Stegall Act.
If US officials had accepted that the onus of debt repayment involves a partnership between the lender and the debtor, this nation would flourish amid a new economic-rennaissance.
Dr. Leeb reexamines gold in terms of fiat money, noting gold's platonic qualities, particularly when juxtaposed against paper money.
When the monetary system eventually implodes and the injustices between the top and bottom classes comes to the fore, gold will again regain an essential role in global society, making the precious metals a must-have asset for every individual.
John Williams aka 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.
John Williams' Shadow Government Statistics is a monthly electronic newsletter that exposes and analyzes the flaws in current U.S. government data and reporting, as well as in certain private-sector numbers. It also looks at the financial markets free of the hype so often put forth in the popular financial media. Generally published on the second Wednesday of the month, the newsletter is supplemented by Flash Updates and occasional Alerts that highlight unusual developments.
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