You don't hear me talking much about inflation, not because inflation doesn't exist in certain categories - food, fuel, medical care - but because in my estimation the real deal is deflation and credit destruction.
Even the Fed can't manufacture enough credit to replace the oceans of debt that are in the process of going bad.
It's an argument that requires some careful thought and I don't expect you to believe it, but Prechter is doing us all a service by raising the issue.
He's not alone in his projections by the way, but in a world that is based on buy-buy-buy (gold, silver, "cheap" houses, "high yield" bonds, survival gear etc.), you're not going to hear many media commentators say: stash cash because then the s*** hits the fan for real, cash will become King in ways few people can imagine.
Agree, disagree. I don't care. But do think. By my estimation, we're only going to get one chance in our life times to get it right.
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.
The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
