The Deflation Times Twitter Updates for 2009-10-30

Posted by Filed in Deflation Twitter Tweets Created: October 30th, 2009
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The Deflation Times Twitter Updates for 2009-10-29

Posted by Filed in Deflation Twitter Tweets Created: October 29th, 2009
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Six Examples of Economic Contraction In Action

jobless economic contraction

Six examples of a continued contraction in the economy; i.e., more deflation on the way:

1. Houston is bankrupt and so is California and Oregon.

2. Is there anymore taxpayer money for more bailouts? GMAC Financial Services Inc. is asking for a $2.8 billion lifeline.

3. Nation's largest commercial-real-estate lender filed for bankruptcy protection in Delaware. Who? Capmark Financial Group Inc., owned by Goldman Sachs Group Inc. and KKR & Co.

4. People are mad. First, at banks, as shown during the Showdown in Chigago where "Thousands of people gathered in Chicago today in front of the American Bankers Association annual convention to protest what they consider to be the group's long history of resistance to financial reform."

Second, at banks again, as shown by Ann Minch who in a YouTube video, that has had 41,804 views, asked Chase Bank "Are you stupid?" after it raised the interest rate on her credit card to 21.24 percent.

And third, at loan-modification agents, who were beaten and tortured by an angry couple in Los Angeles.

5. The Federal Reserve Bank of Atlanta makes a case for a jobless recovery, which we think is hopeful given that there may not be a recovery.

6. To conclude, consider Detroit's housing catastrophe. "After five hours of calling out a drumbeat of "no bid" for properties listed in an auction book as thick as a city phone directory, the energy of the county auctioneer began to flag. "OK," he said. "We only have 300 more pages to go."

Posted by The Deflation Times Filed in Social Change, The Economy Created: October 28th, 2009
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The Deflation Times Twitter Updates for 2009-10-27

Posted by Filed in Deflation Twitter Tweets Created: October 27th, 2009
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Gold: What’s REALLY Behind the Record Rise, Bull or Bubble?

October 20, 2009
By Nico Isaac

When prices in a financial market go from Sea Level to Outer Space in a relatively brief time, two scenarios are at work -- and they both start with the letters 'B-U.'

When a precious metal goes from being a popular long-term investment of buy-and-holders to the quick, get-away 'vehicle' of day-traders, two scenarios are at work -- and they both start with letters 'B-U.'

And when the majority of mainstream pundits see a "new paradigm" in which prices continue to rise indefinitely, two scenarios are at work – and, you guessed it, they both start with the letters 'B-U.'

Enter: the recent Gold Rush of 2009, when ALL of the above conditions apply. Everyone from hedge funds to housewives now hustle to hitch their asset wagon to the rising gold star. Which begs this question: Which of the possible two scenarios are at work: B-U-ll --- Or B-U-bble?

Here's the difference: A genuine bull market is driven by a self-sustaining internal dynamic that's reflected by a host of technical indicators. A Bubble, on the other hand, is the result of untenable psychology that could shift at any moment and bring prices plummeting down.

It goes without saying into which category the mainstream experts put Gold: namely, a new bull market that has years, if not decades more to soar. 'Gold Will Hit $2,000 an ounce,' reads an October 8 Market Watch. And -- 'Gold Has More Upside… The metal's bull run is just getting started,' adds a same day Barron's.

I found hundreds of news items which agree about the long-term potential for gold's uptrend. But not a single one could tell me why the rally would continue, other than because the experts say so.

To know whether a diamond is real, it must cut glass. And, to know whether the bull market in gold is real, it must encompass at least one of these FOUR traits:

A surge in demand that outpaces supply
A falling stock market, which raises the 'safe haven' appeal of precious metals.
A real (not imagined) threat of inflation
An increase in value relative to major foreign currencies

Right now, the Gold market can NOT check off a single one of these items. Case in point:

Supply: Demand for gold from jewelry makers – which comprises 60%-70% of the market – has plummeted to its lowest level in 20 years.

'Safe haven' appeal: From its March 2009 bottom, the U.S. stock market has soared 50% right alongside rallying gold prices.

Inflation: As the October 2009 Elliott Wave Financial Forecast (EWFF) notes: An increase in money supply is only inflationary if it is used to RAISE the total amount of credit. This is NOT happening, as both bank credit and consumer credit levels are contracting for the first time since World War II.

A gold rally in other currencies: Again, the October 2009 EWFF presents the following close-up of Spot Gold prices VERSUS Gold denominated in foreign currencies such as the Canadian dollar, the Australian dollar, the euro, franc, pound, and yen since 2007.

elliott wave gold chart

The major non-confirmation between these two markets is clear, as is the overlying message: IF demand for gold truly outweighed supply, then its value as measured in other currencies would increase.

The rise in gold is primarily the result of speculation and a falling U.S. dollar. These are exactly the 'untenable' forces that contribute to a Bubble, not a genuine Bull market. The difference is only a matter of time.

For long-term forecasts and more in-depth, historical analysis for precious metals, download Prechter's FREE 40-page eBook on Gold and Silver.

Posted by The Deflation Times Filed in EWI Articles, Markets Created: October 27th, 2009
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The Deflation Times Twitter Updates for 2009-10-26

Posted by Filed in Deflation Twitter Tweets Created: October 26th, 2009
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Robert Prechter’s Most Important Teachings and Warnings About Deflation.

We want to tell you about a financial analyst who’s made the journey from fame to outcast and back. We want to tell you about the man who successfully forecast today’s investment environment when virtually everyone, everywhere said he was wrong.

Please allow me to share with you a quote from a popular journalist of the early 1900s, Kin Hubbard:

'There's no secret about success. Did you ever know a successful man who didn't tell you about it?'

To that, we reply, 'Would you have ever benefited from his success if he hadn’t?'

The irony about this quote, and success itself, is that the road to success is often littered with scores of detractors.

They try to discredit your accomplishments.

They try to disprove your research.

Finally, once your mounting evidence forms a mountain too high to climb, they find a way to jump on your bandwagon.

In 2002, when Robert Prechter released a book called Conquer the Crash – You Can Survive and Prosper in a Deflationary Depression, an eventual New York Times, Wall Street Journal and Amazon best-seller, the detractors were out in full force.

The elite financial community labeled Prechter – the 1980s 'Guru of the Decade' – an outcast, a man preoccupied with the concerns of 'small children.' Experts from all schools of the economics profession said Prechter’s deflationary scenario was 'utter nonsense,' and as likely to happen as 'being eaten by piranhas.'

'It couldn’t happen!'

'It never will!' they guaranteed.

Yet... here it is. Since the real estate top in 2005, deflation has festered its way into almost all asset classes, ravaging the portfolios of millions. If you’ve been spared from deflation’s mighty jaws, you surely know someone who hasn’t.

Steadfastly throughout the years, Prechter issued warning after warning about the coming deflation. He provided helpful tips to investors, students, homeowners and business people alike on how to survive the coming deflation. Those who heeded his warnings have kept themselves, their families and their money safe. Some even realized modest gains while others endured life-altering losses.

If you haven’t yet given Prechter’s deflation argument your full attention, we write today to tell you that yesterday was the best time to do so.

Prechter’s complete writings on deflation literally fill thousands of pages. Now, for a limited time, Prechter has compiled his most important deflation writings into a special 60-page Deflation Survival Guide.

Until today, most of the forecasts and advice in this still-prescient eBook have only been released to Prechter’s faithful subscribers. You will not find its entire contents in other books or from other sources. This is your FREE definitive Deflation Survival Guide.

Download your 60-page Deflation Survival Guide now.

Posted by The Deflation Times Filed in EWI Articles, The Economy Created: October 26th, 2009
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The Deflation Times Twitter Updates for 2009-10-25

Posted by Filed in Deflation Twitter Tweets Created: October 25th, 2009
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The Deflation Times Twitter Updates for 2009-10-24

Posted by Filed in Deflation Twitter Tweets Created: October 24th, 2009
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The Deflation Times Twitter Updates for 2009-10-23

Posted by Filed in Deflation Twitter Tweets Created: October 23rd, 2009
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