With so many questions surrounding the U.S. dollar and rising inflation, today King World News interviewed internationally followed John Williams of Shadowstats to get his take on the U.S. dollar, Fed and hyperinflation. When asked about the current fiscal crisis the United States faces Williams stated, “Well, very simply I have very little respect for a political system that goes to the brink each time the debt has to be raised. They have to raise the debt ceiling because the government already is obligated to spend the money beyond what it can raise in taxes. I would be very surprised if the US actually defaults.
What they are doing now is the type of thing that has happened a number of times before, although there seems to be more of a serious challenge this time around and risk of an outright default on the US debt. This would be disastrous for the financial system. Indeed it likely would trigger very heavy selling of the US dollar, which would accelerate the inflation process and move us towards the hyperinflation scenario….