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 ?
http://www.elliottwave.com/features/default.aspx?cat=mw&articleid=5250
Robert Prechter's Glimpse Of The Apocalypse To Come
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