Williams says the Fed talking up "robust economic growth" that is causing inflation is "nonsense." Williams explains,

"The one thing that is not causing inflation is 'robust economic growth.'  So, when they talk about raising interest rates to kill this robust economic growth that's triggering the inflation, that's absurd, and the Fed knows it...

If the Fed foolishly raised rates as reflected in the payrolls as not being fully recovered, you are going to have a sharp downturn, a double dip depression here.  At the same time, you are still going to have the inflation.  You are going to end up with an inflationary depression or a hyper-inflationary Great Depression."

According to Williams' forecast, "In terms of a crash, I am looking for much higher inflation, maybe hyperinflation, and I am looking for the economy to crash.  You can address the inflation by personally holding physical gold and silver."