As the biggest credit bubble in history continues to shrink, consumer prices have stayed flat over the past several months, meaning there is no sign of inflation to come, despite growing commitments from the U.S. government. So what’s keeping inflation at bay, given all the stimulus money promised? The answer: Deflation — an overwhelming urge […]
The following article is an excerpt from Elliott Wave International’s free report, 20 Questions With Deflationist Robert Prechter. It has been adapted from Prechter’s June 19 appearance on Jim Puplava’s Financial Sense Newshour. To read the entire conversation, access the 20-page report here. Jim Puplava: Bob, I want to pick up from last September. Since […]
The M3 money supply in the U.S. is contracting fast, and deflation is suddenly in the news again. It’s a good moment to catch up on a few definitions, as well as strategies on how to beat this rare economic condition. And who better to ask than EWI’s president Robert Prechter? Here’s a free excerpt from a collection of his most important essays on deflation.
Most people assume that they are investing in an inflationary world, because that’s what the Fed tells them it’s worried about. But deflationary forces continue to loom even though they are not so visible. Here are five that you might not be able to see clearly.
Everywhere you look, the mainstream financial experts are pinning on their ‘WIN 2’ buttons in a show of solidarity against what they see as the number one threat to the U.S. economy: Whip Inflation Now. There’s just one problem: They’re primed to fight the wrong enemy. In a special report, Bob Prechter uncovered the ‘Continuing and Looming Deflationary Forces’ underway right now.
Most people are confident they can recognize a myth when they hear one: Wearing a hat causes baldness; eating a bunch of carrots gives you perfect vision; ‘light’ cigarettes are better for your health than the regular kind. But what about this sentence: Inflation is the number one threat to the US economy? Myth? You betcha.
Think back to the fall of 2007. The deflationary “liquidity crunch” that over the next year-and-a-half cuts the DJIA in half, decimates commodities, real estate and world markets is only starting. Almost no one believes that the crash is coming — to a large degree, because everyone is convinced that the U.S. Federal Reserve Bank, with Ben Bernanke at the helm, will never allow deflation to happen: It can just print money! Well, take a look at these two charts EWI’s president Robert Prechter’s published in October 2007.
You want to know whether to prepare for inflation or deflation? This report, with its 22 examples and 13 charts, will answer your questions.