An Early Warning: “Most of the World
is on the Cusp of a Great Deflation”
Three years after the debut of his book. Conquer the Crash,
Robert Prechter plainly and provocatively reiterated his case amidst
the continuing pile-up of American debt in this excerpt from his August
2005 Elliott Wave Theorist:
At this point, dollar-denominated debt has reached
$37.3 trillion. The economy has little basis on which this ocean of
debt will be repaid. With investment markets poised to fall
across the board, the United States, and probably most of the world,
is on the cusp of a great deflation. The credit supply will
contract, and despite ubiquitous professional and popular belief to
the contrary, there is nothing that the Fed can do about it.
- Excerpted from the August 24, 2005, Elliott Wave
Theorist
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