Resources
Enjoy 8 Free Chapters from Robert Prechter’s Conquer the Crash
How to Channel an Impulse Wave on a Price Chart
Market Myths Exposed: Inflation Is Not A Threat, Deflation Is
Your Cheatin’ Chart Will Tell On You
Bob Prechter Reveals the Most Dangerous Gold & Silver Myths
What To Do With Your Pension Plan
Learn Elliott Wave Analysis — Free
What Does NOT Move Markets? Examining 8 Claims of Market Efficiency
Surviving Deflation: First, Understand It
Deflation is more than just “falling prices.” Robert Prechter explains why.
The following article is an excerpt from Elliott Wave International’s free Club EWI resource, “The Guide to Understanding Deflation. Robert Prechter’s Most Important Writings on Deflation.”
The Primary Precondition of Deflation
Deflation requires a precondition: a major societal buildup in the extension of credit. Bank credit and Elliott wave expert Hamilton Bolton, in a 1957 letter, summarized his observations this way: “In reading a history of major depressions in the U.S. from 1830 on, I was impressed with the following: (a) All were set off by a deflation of excess credit. This was the one factor in common.”
“The Fed Will Stop Deflation”
I am tired of hearing people insist that the Fed can expand credit all it wants. Sometimes an analogy clarifies a subject, so let’s try one. Read the rest of this entry »
