When asked if the US dollar will collapse Williams replied, “If we end up in the hyperinflation that I think we’re going to see, then, no, the dollar won’t survive. They’ll probably come up with another currency at some point as they reorganize the global currency system. For this to work I expect it to have some backing of gold in order to sell this concept to the public, but the dollar in its current form would not survive a hyperinflation.”
When asked about the timing of hyperinflation in the United States Williams stated, “That’s the type of thing that could happen at any time, all of the fundamentals are in place. I do think we’re going to have a dollar crisis. I can’t give you the precise timing on it, but circumstances are negative for the dollar in terms of relative political stability. When you look at our government here we can’t control the fiscal conditions. Our trade deficit is continuing to deteriorate, that’s a negative for the dollar, inflation is rising on a relative basis, that’s a negative for the dollar.
The Fed although it is officially ending QE2, most likely is going to come back with a QE3 and that will debase the dollar and if we are going to debase the dollar the rest of the world generally is not going to want to hold it.”
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