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Credit Deflation Crisis

March 07,2013

Inflationists you are being punked by the Money Power elite. Austrian economics says all credit inflations end in a crushing CREDIT DEFLATION CRISIS. Don't get caught - become a smart investor.

Credit Deflation Crisis

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By Delwyn Lounsbury “ The Deflation Guru - 3/27/2013

Inflationists you are being punked by the Money Power elite. Austrian economics says all credit inflations end in a crushing CREDIT DEFLATION crisis and crash. You are going to get caught leaning the wrong way if you don't become a contrary investor. Businesses go bankrupt, foreclosures rise to new levels, prices of assets crash, and debts are not paid.

Unemployment rises to unseen before levels and prices deflate in the Greater Depression.

A hyperdeflation (Why is this word not in the dictionary, but hyperinflation is?) happens as the multiplier effect in reverse snowballs the economy down - down - down. Fewer jobs beget fewer purchases beget more layoffs and thus less spending until a washout low. This crisis will surely be felt the world over and will be many times uglier than the 1930's crash.

To understand the "Way the World Works" in a credit inflation and then a credit deflation crisis crash, - read Robert Prechter's New York Times best seller list "Conquer the Crash" (2002) and his books on socionomics. Robert Prechter heads Elliott Wave International, the world's largest independent financial advisory service. Then you will learn Elliott Wave Theory, Fibonacci and phi (the golden sextant/golden number and how and why the economy and people's mood wax and now wane. There is a lemming-like disease deeply ingrained within mankind (herding he calls it) even as inflation ends and an economic crash quickly approaches hardly a person recognizes the change occurring according to his new study of socionomics. Free: Articles/info & free subscription at my website.

According to Prechter, the credit deflation crash cycle is best viewed by concentrating on the stock market averages like the DOW and S & P which had a 13 year triple top formation. Stocks are now entering Elliott Wave Theory wave "C" down which appears to be starting in March of 2013. There will be a 10,000 point drop in the DOW and unemployment may hit 35 to 50 percent in 2016-2017 as the economy enters "Free Fall Territory."

We are now experiencing what will be known as the deflationary GREATER DEPRESSION. It started with the 2000 dot com stock mania bust. Real estate, which had dropped 33 percent, is still down 25 percent in many areas. The stock market's real value (divided by gold price) also had its top back then. This has been an eighty year Kondratiev long-wave cycle in conjunction with a 13 year triple top in the stock market. Nikolai Kondratiev, a Russian economist, came up with a (long) cycle theory that he said experienced a spring (inflation), summer (stagflation), fall (disinflation) and winter (deflation and depression). Unfortunately, Nikolai was first thrown in the Gulag in Siberia and then executed by Stalin for saying the long wave cycles he discovered built upon each other and favored capitalism.

Anyway, our current cycle got extended way out past what usually is a 50 year spring, summer, fall and winter probably due to fiat monopoly money creation fostered by fraction reserve banking by an elite criminal cabal of inter-generational central bank controlling families who want a socialist one world government dictatorship.



These central banking elite that own all 150 sovereign banks actually help create these booms that end in busts by printing too much fiat monopoly money. Apparently, they over printed money causing the Roaring Twenties that led to the Great Depression of the 1930's. The elite central banking cabal who want world domination purposely caused the fiat money fueled boom, and now wants you to get wiped out in a contracting bust that feeds on itself. The Hitler-like fascist elite endeavor exterminating your hope, freedom and liberty in their one world government totalitarian plot. Beware the globalist elite plot is to usurp the world's middle classes freedom, liberty and money and subjugate them under the United Nations, World Bank and International Monetary Fund etc. First chaos, financial panic and war - then total cradle to grave domination!

The financial power elite will get even richer by selling short and then buying the deflated assets back for pennies in 2016 “ 2017. As the central banksters move cash to the safety of America and sell short the stock, real estate, bond and commodity markets, the US dollar may actually strengthen. Thereby, catching many who believe the worth of the dollar is forever in decline.

Those promulgating purchasing silver, an industrial metal, along with gold at high nosebleed level prices may be delusional. Gold and silver went hyperbolic. Gold hit $1,912 per ounce on 9/6/2011and silver topped out at $49 per ounce. Now, gold may drop a Fibonacci 61.8 percent before mounting the next wave up. Silver may drop even more as it is a both a monetary and industrial metal.

I say "wait for it." In the 1930 Great Depression Homestake gold mine stock went from $40 a share to close to $500 a share and paid a yearly dividend of $56 - at a time in which the price of gold only went from $20 to $35. Why? They were mining money. So, get precious metals and senior (producing) gold stocks at lower prices.

This is the big one and money just goes poof. There is too much harping on inflation? Most likely, even commodities, art and collectibles values will be toast. I imagine "Antiques Roadshow" will go off the air at some point. One can't eat that stuff.

You need to store water, food, essentials, guns, cash and gold and silver (at lower prices). You also need to get out of debt, get free and clear on your home and sell and/or go short stocks and bonds.

I am on a mission of spreading the word about the internet reformation revolution. I am an Eagle Scout and mine is the "Be Prepared" story! Your and your family's survival could very well be diminished, dampened, doubtful, dubious and defeated as the elite central bankers hoodwink the majority of you and abscond with your freedom, liberty and money. The last season in the cycle and economy is a Kondratiev winter - a credit deflation crisis and crash.

World wide credit deflation crisis and the Greater Depression dead ahead as asset prices deflate 90% or more!

See: http://www.one-world-government.org - If you really want to know what is going on with the Hitler-like fascist elite who want a socialist dictatorial one world government/new world order with you as their serf, servant or slave.

Hurry! Get Prepared! More at my websites¦

Copyright 2013 by Delwyn Lounsbury - The Deflation Guru

Use of this article allowed with attribution back to:

www.deflationeconomy.com

See: http://www.one-world-government.org - If you really want to know what is going on with the Hitler-like fascist elite who want a socialist dictatorial one world government/new world order with you as their servant, serf and slave.



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