History lesson

Still happening today?  you bet

Must watch video

Here’s a great view into the world of trading.

Inflation

The Rundown on Runaway Inflation in One Chart Despite a dramatic increase in the Fed’s balance sheet, the Producer and Consumer Price Indexes are subdued

By Elliott Wave International

Famed radio broadcaster Earl Nightingale, who was the voice of Sky King on the radio and later went on to become a motivational speaker, described what he believed to be the biggest sin a public speaker could commit.

It’s not stumbling over words or going overboard with warm-up jokes or speaking too long. The greatest sin a public speaker can commit is to be uninteresting. What’s more, the failure is related much more to the speaker’s lack of preparation  than to the topic. Nightingale argued that even the history of the fork could become an interesting talk.

We believe our economic analysis is made even more interesting and insightful by using our own unique charts. They reflect our independent analysis, and they are different from what you find in other financial publications.

Robert Prechter created this chart for a speech he gave to the Market Technicians Association in April 2013, which is  reprinted in the July-August Elliott Wave Theorist.  He used the chart to address the often-voiced fear that runaway    inflation is just around the corner because, via quantitative easing, the Federal Reserve has been manufacturing new banknotes  and swapping them for the debts of others – a process that inflates the supply of dollars.

The Fed has been inflating the supply of dollars at a stunning 33% annual rate over the past five years. It plans  to continue doing so at least through the end of this year  and has kept open the possibility that it will do so indefinitely.   This is the policy upon which those predicting runaway inflation  are basing their arguments. With this dramatic a rise, it’s no wonder investors expect inflation and have aggressively          positioned for it.

Look just about anywhere else, however, and you will see subtle evidence of deflationary pressures. Given knowledge only of the Fed’s inflating, many people would expect the Producer and Consumer Price Indexes to be rising at a rate of 33% annually. But, as you can see in [the chart], the PPI’s annual rate of change is stuck at zero and the CPI has been rising at only a 2% rate.

The Elliott Wave Theorist, July-August 2013

Everyone else is talking about inflation, but deflation is the real threat they should be concerned with. Our friends at Elliott Wave International have created a report that spells out the dangers of deflation and you can have it on your screen with just a few clicks — free!  See below for full details.


Learn Why Deflation Is the Biggest Threat to Your Money Right NowDiscover Robert Prechter’s views on the unfolding deflationary trend by reading the 90-page report, The Guide to Understanding Deflation. This guide will help you survive a major deflationary trend, and even equip you to prosper.

Plan and prepare for your financial future. Download Your Free 90-Page Deflation Survival Guide eBook >>

This                            article was syndicated by Elliott Wave International and                            was originally published under the headline The Rundown on Runaway Inflation in One Chart.                            EWI is the world’s largest market forecasting firm. Its staff                            of full-time analysts led by Chartered Market Technician                            Robert Prechter provides 24-hour-a-day market analysis to                            institutional and private investors around the world.