I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???
Monday, 24 May 2010
This massive deflation that Prechter speaks of could only happen on a gold standard. Thus comparing the 30s to now is foolish. There will be massive deflation in the next 10 years but only when measured in terms of gold. In fiat currency terms we will have massive inflation as central banks print and print in accordance with their 'New Keynesian' ideology.
The question is how much deflation can the Euro zone take before it breaks up so the consistent countries can start inflating ? Will Germany end up leading a new 'Hard Euro' north eastern European block ?
Robert Prechter's Glimpse Of The Apocalypse To Come
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