Elliott Wave Courses | by ForexCycle.com | Friday, 23 January 2015 02:35 UTC
By Elliott Wave International
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Inflation ruled from 1933 to 2008.
Yet in the just-published Elliott Wave Theorist, Bob Prechter's headline says, "Deflation is Starting to Win."
Take a look at this chart from The Telegraph:
But as Prechter explains, falling prices are an effect of deflation.
So a major debt buildup is a precondition of deflation. Do we see this today? The third edition of Conquer the Crash shows the answer.
Total dollar-denominated debt has skyrocketed since 1990. The upward trend turned slightly down during the 2007-2009 financial crisis, but has since crept higher.
How fast and how far can this nearly $60 trillion in debt dwindle?
It's instructive to review the collapse of the 1920s credit bubble.
On the left side of the chart, note how debt deflation needed nearly a decade to unwind.
Today's mountain of debt is far higher than in 1929, yet our indicators suggest that the next debt deflation could unfold much more rapidly.
The third edition of Conquer the Crash provides 157 forecasts. Here are three:
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