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Setting the Record Straight

Setting the Record Straight

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Answers to Comments on YouTube About Deflation, Robert Prechter, and the Elliott Wave Principle
Answers to Comments on YouTube About Deflation, Robert Prechter, and the Elliott Wave Principle

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Published by: Deflation Times at Scribd on Oct 01, 2009
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10/1/09 2:52 PMSetting the Record Straight: Answers to Comments on YouTube About D… and the Elliott Wave Principle | http://www.thedeflationtimes.comPage 1 of 6http://www.thedeflationtimes.com/2009/09/30/setting-the-record-strai…ube-about-deflation-robert-prechter-and-the-elliott-wave-principle/
Abandon All Hope: Deflation, Financial Crisis, Credit Crisis, Subprime Crisis, Financial Crash, Bailout,Wall Street Crash, Foreclosures, Bank Failures, FDIC Bank Fails, Bank Bailouts, Depression. ProtectYourself: Elliott Wave, Top 100 Safest US Banks, Safe Banks, Tomorrow’s News Today.
Setting the Record Straight: Answers to Comments on YouTubeAbout Deflation, Robert Prechter, and the Elliott Wave Principle
Comment 1
: "I think it is very good that there is now a discussion about The Fed and the things that aredone. Two or three years ago, it seemed like nobody (other than Peter Schiff) on the news talked about.Now people are beginning to take things seriously."
Answer 1
: Before two or three years ago and before Schiff there was Robert Prechter and Ron Paul. Forexample, Robert Prechter published Conquer the Crash in 2002.The primary reason people are just now 'beginning to take thingsseriously' is because it's not what theysee on TV but it's actually happening to them: i.e. the value of their homes (stocks, funds, bonds...)collapsing... loosing jobs and not being able to find employmentthereafter... realizing that their bank isnot so friendly anymore...
Comment 2
: "I don't follow Prechter but heard him with same guy last week. He was thoroughlyquestioned & I was surprised at some core diversions from Misesian monetary logic & a reliance on"knowing" with his "waves" & "socionomics" that deterministically American society would act like hisgrand cyclical sociological insights prescribe (express their desire for saving exclusively in the UScurrency unit) overwhelming everything irrespective of Bernanke/defecits/congress/Chi na etc. Prechteris flaky."
Answer 2
: Look a Prechter's track record, from 1979 (when he left Merrill Lynch) to today, and you'llchange your mind about him:
10/1/09 2:52 PMSetting the Record Straight: Answers to Comments on YouTube About D… and the Elliott Wave Principle | http://www.thedeflationtimes.comPage 2 of 6http://www.thedeflationtimes.com/2009/09/30/setting-the-record-strai…ube-about-deflation-robert-prechter-and-the-elliott-wave-principle/
Using the Elliott Wave Principle ('his "waves") he forecasted a long-term reversal lower in gold(February 1980) and a long-term "super bull market underway" in stocks (October 1982). Theseforecasts proved correct—especially for the stock indexes.He won the U.S. Trading Championship in 1984, with a then-record 444% return in a monitored optionstrading account. He was named "Guru of the Decade" by the Financial News Network (now CNBC) forthe 1980s. AND, he forecasted a large-scale bear market, as explained in his book Conquer the Crash(published in 2002), which was his platform to forecast and explain every chapter of today's financialcrisis, years before it happened!!Does that sound flaky to you? So you should listen to what he has to say and follow his lead. Don't listento or follow Bernanke and Congress. It is they who are flaky.
Comment 3
: "I dont think that the deflationist know they are spinning B,S. If we were in a normaleconomy with low debt we would have deflation. However we dont have that. WE have a debt ladeneconomy. So we will have inflation."
Answer 3
: The tide has turned: the exceptional volume of credit, of debt, has reached its limit and thetrend has reversed. Thus, the supply of credit, and therefore the supply of money, has shrunk, which areeffects of deflation.Add to this the deceleration in the U.S. economy which has stressed debtors’ abilities to pay and you'llsee that it is precisely because 'WE have a debt laden economy' that we have deflation and are going intoa deflationary spiral toward depression.What's scary is that it is just getting started and deflation will continue for years to come. So it is not B.Sand there is no spin.
Comment 4
: "Dr. Marc Faber - Sept 12, 2009 - I think the deflationists are wrong for the simplereason...the Federal Reserve can print money...you can electronically print money & so the quantity of money goes up. You can transfer any asset from the private sector into the govt...so many mortgageshave been transferred to the govt. They will have continuous huge losses. So, I think that deflation ispretty much out of the picture. Deflation would manifest itself in a strong dollar. The dollar is weak."
Answer 4
: The Fed's primary function, for more than 90 years, has been to foster the expansion of creditand credit is another matter entirely. Credit is not money and Faber is confusing credit creation withmoney creation.U.S. bonds are the reserves of the Fed and U.S. bonds are the source of its power. Therefore, the U.S.government does not want its bonds to attain (official) junk status, because its borrowing power is one of the only two powers over money that it has, the other being taxation.By flooding the market with money, the Fed would cause a panic among U.S. bond-holders, and theirselling would depress the value of the Fed's own reserves. So the ivory-tower theory of unlimited cashcreation to combat credit implosion would meet cold, harsh reality resulting in the Fed committingsuicide by doing just that.As Ludwig von Mises said in Human Action (p.572), "There is NO MEANS of avoiding the finalcollapse of a boom brought about by credit expansion."ShareThisPosted by Mary Filed inSocial Change,The Economy|EditCreated: September 30th, 2009
10/1/09 2:52 PMSetting the Record Straight: Answers to Comments on YouTube About D… and the Elliott Wave Principle | http://www.thedeflationtimes.comPage 3 of 6http://www.thedeflationtimes.com/2009/09/30/setting-the-record-strai…ube-about-deflation-robert-prechter-and-the-elliott-wave-principle/
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