Despite the Obama administration’s touting of lower unemployment figures, a strong dollar and a robust stock market, 2015 will be a year of economic turmoil, dollar panic and hyperinflation, claims economist John Williams, purveyor of the popular website ShadowStats.com and a well-known critic of politically manipulated government economic statistics. Describing 2014 as a year of “market hype and manipulation,” Williams made his dire predictions in a special commentary issued this week for his newsletter subscribers.
Adding to the surreal depiction of Obama-era “good economic news” in the form of a low 5.6 percent December unemployment rate – down from a recession peak of 10 percent – Gallup Chairman and CEO Jim Clifton wrote a blistering op-ed attacking the government’s “extremely misleading” unemployment statistics. “There’s no other way to say this,” wrote Clifton. “The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.”
Williams believes the actual unemployment stands at 23 percent, pointing out the Bureau of Labor Statistics excludes from the labor force anyone who is “so hopelessly out of work that you’ve stopped looking over the past four weeks.” Noting the Gallup chief’s surprising public rebuke, Williams says Main Street is not fooled by hype from the BLS.
“Main Street U.S.A. was not looking at a fully recovered and booming economy in the third quarter 2014, as of the November 4, 2014 election,” Williams wrote. “The exit-poll economic rating was consistent with an outright quarter-to-quarter contraction in real third-quarter GDP activity, a quarter that had ended on September 30th, more than one month before the election.”
Williams said voters certainly didn’t believe the headline 3.5 percent third-quarter growth published the week before the election. “If they did not believe that, they most likely also did not believe the 5 percent revised growth rate published on December 23rd as the third estimate, second revision to third-quarter GDP growth,” he said. Williams believes 2015 will be the year in which the Obama administration’s “Big Lie” regarding the economy’s strength will turn into the “Big Truth,” with Americans forced to deal with stock market turmoil and a dollar under attack and declining in value. He expects to see the real price of goods and services skyrocket, as the U.S. enters inevitably a long-term cycle of economic decline, persistent high unemployment and hyperinflation.
Clifton wrote: “While you are as unemployed as one can possibly be, and tragically may never find work again, you are not counted in the figure we see relentlessly in the news – currently 5.6 percent. Right now, as many as 30 million Americans are either out of work or severely underemployed. Trust me, the vast majority of them aren’t throwing parties to toast ‘falling’ unemployment.” More