Elliott Wave InternationalmyEWISocioniomics.Net

As with "Madame Deficit," Heads May Roll During the Next Economic Crisis
The blame game will get serious.

By Bob Stokes
5/6/2013 5:15:00 PM

Marie Antoinette had been a spendthrift early in her reign, but curtailed that habit when she learned what the public thought. Even so, the young French queen had already been nicknamed "Madame Deficit." French debt had ballooned before she and King Louis XVI took the throne. But they received the blame for France's financial straits. Now fast forward to the U.S. economy today. Get ready for the blame game to turn serious.

Filed Under: deficit, economic indicators, Elliott wave, europe, history, Robert Prechter, sentiment, social mood, Sovereign Debt

Category: U.S. Economy


The Key Factor That Leads Directly to an Economic Depression
Stock market action leads the economy

By Bob Stokes
2/7/2013 4:15:00 PM

Some argue that trends like mounting debt and an ever-widening deficit will trigger a depression. Others say it can happen if the Federal Reserve aggressively raises rates. Then again, the culprit might be chronically high unemployment or plunging home prices. In truth, however, the correct answer is ...

Filed Under: Bob Prechter, CNBC, deficit, deflation, economic depression, economic indicators, Elliott wave, great depression, Interest Rates, recession, U.S. Federal Reserve (the Fed), U.S. STOCK MARKET, unemployment

Category: U.S. Economy


Think Lower U.S. Trade Deficit Is Bullish for Stock Market?
The latest figures show that the U.S. trade gap has narrowed, and many see that as a bullish sign

By Vadim Pokhlebkin
1/2/2013 2:00:00 PM

Before you join the crowd in thinking that shrinking trade gap is good for the U.S. economy and the stock market, see this eye-opening chart. 

Filed Under: bull market, buy and hold, Club EWI, deficit, Dow Jones Industrial Average (DJIA), economic depression, Nasdaq Composite, New York Stock Exchange (NYSE), QE2, S&P 500

Category: U.S. Economy


6 Government "Fixes" That Came Too Late to Matter
Government, the ultimate crowd, is powerless to fix what's already occurred – but they always try.

By Bob Stokes
12/27/2012 12:30:00 PM

Robert Prechter says a huge price will be paid for excessive borrowing and spending. And that price is summed up in one word: deflation. Read what EWI subscribers are reading now about what could turn out to be the most severe economic contraction in American history and why the government is powerless to stop it.

Filed Under: 1929 Stock Market Crash, conquer the crash, debt, deficit, deflation, economic depression, economic indicators, Elliott Wave Theorist, history, Robert Prechter, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


$16 Trillion and Growing: A Mind-Blowing Perspective on U.S. Debt
National debt + deficit = Deflationary disaster

By Bob Stokes
10/15/2012 5:30:00 PM

The total amount of global debt, says Robert Prechter in a recent Theorist, is estimated to be around a quadrillion dollars. That's $1,000,000,000,000,000, or one-thousand trillion dollars. Is a day of reckoning ahead?
 

Filed Under: Ben Bernanke, central banks, conquer the crash, debt crisis, deficit, deflation, Elliott wave, gross domestic product (GDP), liquidity, Robert Prechter, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


The Federal Reserve Has No Cure for What Ails the Economy
Learn why the credit crisis will inevitably conclude in a deflationary depression

By Bob Stokes
7/18/2012 3:30:00 PM

The Federal Reserve will not be able to prevent a global credit collapse. EWI's Financial Forecast Service offers ideas on how to position yourself. These are ideas you can put to work right away. The unprecedented build-up of credit in the past 80 years means the economic collapse could be swift. It's best to prepare now...

Filed Under: banks, Ben Bernanke, central banks, credit crisis, credit rating, debt, deficit, deflation, economic depression, economic indicators, Elliott wave, european central bank, European debt crisis, Federal Open Market Committee (FOMC), Greenspan, liquidity, M3 money supply, monetary policy, monetization, QE2, quantitative easing, Sovereign Debt, Treasury bonds, U.S. Federal Reserve (the Fed), unemployment

Category: U.S. Economy


How to Keep Your Head Above Deflation and Economic Depression
Protect your finances and future during the downward spiral

By Bob Stokes
7/13/2012 3:45:00 PM

As the velocity of money slows, a man known for having plenty of it has just changed his long held upbeat economic tune. On July 12, billionaire Warren Buffet...

Filed Under: conquer the crash, debt crisis, deficit, deflation, economic depression, Elliott wave, European debt crisis, housing prices, liquidity, M3 money supply, soverign debt crisis, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


What to Expect During the Coming Debt Collapse
Entire nations will likely default, learn what to do now

By Bob Stokes
7/10/2012 3:30:00 PM

Most of us can grasp how individuals, companies and even municipalities can go bankrupt. It's less easy to conceive how a nation can default on its obligations. But history proves that nation's can default on their debt. Learn what Elliott Wave International expects next...     

Filed Under: conquer the crash, credit crisis, debt crisis, debt downgrade, deficit, deflation, economic depression, economic indicators, Elliott Wave Theorist, great depression, Greek debt, history, junk bonds, municipal bonds, soverign debt crisis, U.S. Treasuries

Category: U.S. Economy


Largest City Bankruptcy Ever: Stockton Will Not Be Alone
Too much borrowing and spending will doom other municipalities

By Bob Stokes
6/27/2012 4:30:00 PM

A recent issue of the The Elliott Wave Financial Forecast observes that "Muni investors have so far shrugged off the increased risk of defaults." Complacency is a financially dangerous mind-set right now. The financial dominoes are all lined up, and it appears the invisible finger has just nudged the first domino...

Filed Under: Club EWI, commercial real estate, conquer the crash, debt, deficit, deflation, economic depression, economic indicators, Elliott wave, home sales, housing prices, municipal bonds, pension funds

Category: U.S. Economy


The Day of American Austerity: What Will It Look Like?
In the United States, the belt-tightening has just begun

By Bob Stokes
6/11/2012 1:15:00 PM

Ten years ago, Bob Prechter described what this age of austerity would look like. Much of what he described looks just like what is going on today. But how about the rest of what's described in Conquer the Crash? Yes, there's more. You see, Prechter pointed out much more than what unfolded in the 2007-2009 financial crisis. Do yourself the biggest of favors and learn what he has to say...

Filed Under: Bob Prechter, conquer the crash, credit crisis, debt crisis, deficit, deflation, economic depression, Elliott wave, Elliott Wave Theorist, European debt crisis, European Union (EU), eurozone, soverign debt crisis

Category: U.S. Economy


U.S. Debt Deal: Bullish or Bearish for Stocks?
Mainstream opinions can only play catch up with the markets, while Elliott wave analysis offers you objective forecasts

By Vadim Pokhlebkin
8/1/2011 1:00:00 PM

Just as everyone greeted the bull in the early Monday morning trading, the DJIA reversed and fell by 100 points and the U.S. debt deal quickly went from a "bullish" to a "bearish" factor...

Filed Under: Barack Obama, debt ceiling, debt crisis, deficit, deflation, volatility

Category: Stocks


Dollar-Swiss (USD/CHF): Here's How to See What's Ahead Without Watching the News
Elliott wave analysis of chart patterns helps to keep you one step ahead of the forex markets

By Vadim Pokhlebkin
7/28/2011 2:15:00 PM

Now that the U.S. dollar is trading at an all-time low against the Swiss franc, discussions of the Swiss franc's "safe haven" appeal are commonplace. But could you have seen the USD/CHF trading as low as it is today before the news? If you know Elliott wave analysis -- yes. Here's how.

Filed Under: debt ceiling, debt crisis, deficit, Elliott Wave trading, euro, eurozone, European debt crisis, forex trading, Swiss franc, U.S. dollar

Category: Currencies


Austerity from State Capitals: What's Around the Corner?
Whack Whack Here and a Whack Whack There, Everywhere a Whack Whack

By Bob Stokes
7/5/2011 5:30:00 PM

States and cities took on large obligations when economic times were good, on the assumption that they'd have enough revenue to pay those bills in the future. But now many of those bills are due and they don't have the funds. The economy went south. To extrapolate the present into the future is unwise because trends change. You need the best method for anticipating major trend changes.We believe that best method is...
 

Filed Under: credit crisis, deficit, economic depression, municipal bonds, unemployment

Category: U.S. Economy


Does a Soaring Debt Ceiling Equal A Sinking U.S. Dollar?
EWI's stunning 30-year chart reveals no consistent correlation between a rising account deficit and a declining dollar

By Nico Isaac
6/28/2011 11:15:00 AM

The what: Right now, the political debatosphere is more divided than a skin cell over the issue of To-Raise, or Not-To-Raise the US debt ceiling from its $14 trillion limit. (Deadline for a decision is August 2) Yet, as split as the various parties are over what to do, they can all agree on one main issue: A rising deficit is to the U.S. dollar what King Kong is to a car.

Filed Under: deficit, Elliott Wave trading, U.S. dollar

Category: Currencies


Will the U.S. Debt Crisis Lead to "Austerity in America"?
"Don't Expect Government Services to Remain at Their Current Levels"

By Bob Stokes
6/7/2011 4:45:00 PM

America obviously has a debt crisis of its own. This is not to say the U.S. is currently in the same dire financial straits as Greece, etc. -- or that America's economic future will unfold in the same manner. Yet...

Filed Under: bailouts, credit crisis, credit rating, deficit, deflation, European Union (EU), Greek debt, Irish debt crisis, Sovereign Debt

Category: U.S. Economy


Stocks Rally On the News of Bin Laden's Death, You Say? It's Not That Simple
Interest rates, oil prices, trade balances, corporate earnings and GDP: None of them seem to be important, or even relevant, to explaining stock price changes

By Vadim Pokhlebkin
5/2/2011 5:30:00 PM

MarketWatch.com ran an interesting story on May 2 that quoted from a research paper which found "little evidence that non-economics events have a big effect on the stock market." Here at EWI, we go one step further and say the following: Economic events have little impact on the stock market, too. Don't believe us? See this chart.

Filed Under: Campaign for Independent Thinking, deficit, earnings, Efficient Market Hypothesis (EMH), Elliott wave, Elliott Wave Principle, gross domestic product (GDP), Robert Prechter, Robert Prechter, S&P 500

Category: Stocks


Forex: Don't Rush to Bury The U.S. Dollar
When the media gets absolutely convinced the U.S. dollar is "history," it rebounds -- and surprises everybody

By Vadim Pokhlebkin
1/24/2011 3:00:00 PM

Financial markets -- i.e., investors -- have a short memory. For example: At Elliott Wave International, we have pointed out time and again that when market sentiment reaches a bullish or bearish extreme, chances are that a trend change is near. Yet time and again, almost everyone forgets this. Here's a fresh example. In June 2010, the U.S. dollar began a losing streak against its forex competitors...

Filed Under: Campaign for Independent Thinking, deficit, euro, euro/USD exchange rate, European Union (EU), forex trading, online trading, quantitative easing, U.S. dollar, U.S. Federal Reserve (the Fed), unemployment

Category: Currencies


Robert Prechter Dispels 10 Popular Investment Myths: Conclusion
Interest rates, oil prices, trade balance, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, fiscal policy, etc. -- NONE have a reliable effect on the stock market

By Vadim Pokhlebkin
1/10/2011 12:30:00 PM

This is the conclusion of the series "Robert Prechter Dispels 10 Popular Investment Myths," where EWI president explains why traditional financial models failed in 2007-2009 -- and why they are doomed to fail again (and again). Missed this important series? Start with Part I now.

Filed Under: 1929 Stock Market Crash, Ben Bernanke, bull market, crude oil, deficit, earnings, economic depression, great depression, inflation, market crash, monetary policy, terrorist attacks, U.S. Federal Reserve (the Fed), unemployment

Category: Stocks


Drowning in Debt: Are States Dangerously Close to the "Crisis Phase"?
A Potential Comparison to the Sub-prime Mortgage Meltdown

By Bob Stokes
12/7/2010 3:30:00 PM

What could be as bad as the sub-prime mortgage meltdown? After all, that crisis supposedly triggered what nearly became a global financial Armageddon in 2007-2008. Well, here's one "as bad as" candidate recently in the news...

Filed Under: bailouts, credit crisis, deficit, pension funds

Category: U.S. Economy


U.S. Dollar & Trade Deficit: Enemies or Friends? Let's Call The Whole Thing Off
EWI has stayed one step ahead of the dollar's biggest turns

By Nico Isaac
8/16/2010 4:45:00 PM

In the world of mainstream economic wisdom, the "laws" of fundamental market analysis are far less "writ-in-stone" than they are "writ" in non-hardening modeling clay; they shape AND reshape themselves to fit the news of the hour, taking on completely different forms than the ones that came before.

Filed Under: U.S. dollar, U.S. dollar, cash, deficit

Category: Currencies


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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.