The Recession Is Coming: Economist Warns It’s Beyond Control: “I Don’t See What Will Save It At This Point”

Friday, May 23, 2014
By Paul Martin

Mac Slavo
May 22nd, 2014
SHTFplan.com

We are on the verge of another recession. So says Shadow Stats economist John Williams, who warns that by the end of July it will become apparent to all Americans. That’s when the government will release its latest GDP economic figures and according to Williams those numbers, combined with revisions for the first quarter of 2014, will show negative economic growth for a second quarter in a row, the official definition for recession.

In an interview with Greg Hunter’s Watch Dog USA, Williams explains that it all boils down to one critical factor. Credit lending has tightened up since the crash of 2008 and without it U.S. consumers don’t have enough money to continue fueling the economy through consumption, the single most important element of economic growth.

We’re turning down anew. The first quarter should revise into negative territory… and I believe the second quarter will report negative as well.

That will all happen by July 30 when you have the annual revisions to the GDP. In reality the economy is much weaker than that. Economic growth is overstated with the GDP because they understate inflation, which is used in deflating the number…

What we’re seeing now is just… we’ve been barely stagnant and bottomed out… but we’re turning down again.

The reason for this is that the consumer is strapped… doesn’t have the liquidity to fuel the growth in consumption.

Income… the median household income, net of inflation, is as low as it was in 1967. The average guy is not staying ahead of inflation…

The rest…HERE

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