Prechter's insights are brilliant. People who think we're headed straight for hyperinflation do not understand what causes inflation: "credit creation." The Fed creates credit and further credit creation is done via fractional reserve lending. As asset bubbles pop, that credit (now debt) is destroyed via bankruptcies or payment: this is deflation and the value of the remaining dollars rises. Hyperinflation is an eventual possibility, but not until deflation has ravaged the system.
Prechter's insights are brilliant. People who think we're headed straight for hyperinflation do not understand what causes inflation: "credit creation." The Fed creates credit and further credit creation is done via fractional reserve lending. As asset bubbles pop, that credit (now debt) is destroyed via bankruptcies or payment: this is deflation and the value of the remaining dollars rises. Hyperinflation is an eventual possibility, but not until deflation has ravaged the system.
Well gold is money and the paradigm of currency changes every 40 years or so. And we are overdue för that change. Dollar may strengthen alot but it may also become completely worthless. US backed debt is worth nothing if noone belives they will pay. You really think theyre gonna sell their gold to pay back their debt. It was suggested that Greece put up some of their gold as collateral for their loans and they refused. Prechter's safety is not worth a continental if its nominated in dollars.
Since the mountain of debt far exceeds the Fed notes and cannot ever be paid. What is there to stop the Fed from adding an extra zero on the end of our Fed notes? Do you honestly feel secure holding paper money that people perceive to have value, and can be manipulated and devalued at the discretion of the government/Fed or you think its safer to hold gold and silver(real money as Mr. Prechter states?). You be the judge of this!
@orangedac Yes. Arguably there is still 75% of the country working and "drinking the debt kool-aid". People in urban areas are still taking on debt. Governments around the world have stepped in today to enforce the credit markets. We are definitely in bubble territory, but junk bonds and government backed debt (student loans, FHA) is still churning. Not to mention revolving credit has defaulted at a lesser rate. No force can stop the Fed (yet). and the elite are ensuring they get paid b4 it ends
@nteowl2025 I agree with you, I dont see deflation until the interest rates reflect closer to true market rates, and then we will have the collapse, and then you want to put your money in cash(of a safer country and safer bank) only at that time. This Mr. Prechter will some day be right, but anyone could have guessed this. IT doesnt take a genius. Everything is cycles. For now I am in gold and silver which I deem to be less risky than paper money now. Anyone disagree?
this was a great interview, of course they are both in the huge deflation anti gold camp but nevertheless Prechter has clarity and is sticking to his guns.
@MikeKay1978 - yes u are correct he does promote gold as true money but he has it as a huge 5 waves down at present. Actually he is one of my heroes but I hop he has the wrong scale of fractal for gold and the 5 he assumes we did reach - I hope was only a 3 up and we have a huge extended 5 up to go. Regardless if silver gets to $25 I am buying big...
@jvc929 we currently have a recession with monetary inflation and credit bubble. Credit is in a bubble and not gold. I think the straw that breaks the camels back is when interest rates become more realistic. How can you not have continual money printing with low interest rates and depreciation of the dollar?
@charronfamilyconnect Don't be fooled. Deflation is what is coming. It will become clear early 2012 as deleveraging expands and dollar increases in value when commodities fall and flight money moves from Europe into the dollar.
@drkevincampbell do your saying confidence will be restored to the US Dollar? What backs this other than confidence? There really isn't any intrinsic value in the artificial dollar? even Preschter says gold is real money. So you saying unreal money will be propped up? If so how long will this illusion last? Gold is real money so why wouldnt it go up in value?
@drkevincampbell Since the mountain of debt far exceeds the Fed notes and cannot ever be paid. What is there to stop the Fed from adding an extra zero on the end of our Fed notes? Do you honestly feel secure holding paper money that people perceive to have value, and can be manipulated and devalued at the discretion of the government/Fed or you think its safer to hold gold and silver(real money as Mr. Prechter states?). You be the judge of this!
@ednan9 His calls do tend to be early so from a trader's perspective I can see how that would be aggravating. I do think his reasoning is sound however and that he's right about the coming P3 collapse.
Good work.
lambeaulibman 5 days ago
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Prechter's insights are brilliant. People who think we're headed straight for hyperinflation do not understand what causes inflation: "credit creation." The Fed creates credit and further credit creation is done via fractional reserve lending. As asset bubbles pop, that credit (now debt) is destroyed via bankruptcies or payment: this is deflation and the value of the remaining dollars rises. Hyperinflation is an eventual possibility, but not until deflation has ravaged the system.
elliotwave67 1 month ago
Prechter's insights are brilliant. People who think we're headed straight for hyperinflation do not understand what causes inflation: "credit creation." The Fed creates credit and further credit creation is done via fractional reserve lending. As asset bubbles pop, that credit (now debt) is destroyed via bankruptcies or payment: this is deflation and the value of the remaining dollars rises. Hyperinflation is an eventual possibility, but not until deflation has ravaged the system.
elliotwave67 1 month ago
elliot waves. total bullshit.
zevkirsh 2 months ago
Well gold is money and the paradigm of currency changes every 40 years or so. And we are overdue för that change. Dollar may strengthen alot but it may also become completely worthless. US backed debt is worth nothing if noone belives they will pay. You really think theyre gonna sell their gold to pay back their debt. It was suggested that Greece put up some of their gold as collateral for their loans and they refused. Prechter's safety is not worth a continental if its nominated in dollars.
Hanksand 2 months ago
@Hanksand Or in other words: a ponzie scheme only lasts as long as people are willing to belive in it. Gold and silver requires no faith.
Hanksand 2 months ago
Since the mountain of debt far exceeds the Fed notes and cannot ever be paid. What is there to stop the Fed from adding an extra zero on the end of our Fed notes? Do you honestly feel secure holding paper money that people perceive to have value, and can be manipulated and devalued at the discretion of the government/Fed or you think its safer to hold gold and silver(real money as Mr. Prechter states?). You be the judge of this!
charronfamilyconnect 2 months ago
Robert Prechter is right, HOWEVER the credit bubble isn't over yet. 6-8 more years.
nteowl2025 3 months ago
@nteowl2025
6 to 8 more years ?
where's the additional credit coming from for all that time. do you mean the govt will run trillion plus dollar deficits year after year ?
orangedac 3 months ago
@orangedac Yes. Arguably there is still 75% of the country working and "drinking the debt kool-aid". People in urban areas are still taking on debt. Governments around the world have stepped in today to enforce the credit markets. We are definitely in bubble territory, but junk bonds and government backed debt (student loans, FHA) is still churning. Not to mention revolving credit has defaulted at a lesser rate. No force can stop the Fed (yet). and the elite are ensuring they get paid b4 it ends
nteowl2025 3 months ago
Comment removed
nteowl2025 3 months ago
@nteowl2025 I agree with you, I dont see deflation until the interest rates reflect closer to true market rates, and then we will have the collapse, and then you want to put your money in cash(of a safer country and safer bank) only at that time. This Mr. Prechter will some day be right, but anyone could have guessed this. IT doesnt take a genius. Everything is cycles. For now I am in gold and silver which I deem to be less risky than paper money now. Anyone disagree?
charronfamilyconnect 2 months ago
this was a great interview, of course they are both in the huge deflation anti gold camp but nevertheless Prechter has clarity and is sticking to his guns.
martialarm 3 months ago
@martialarm
Prechter is actually pro gold since he too believe gold is real money. If you read his book you can read that having gold in your portfolio is good.
MikeKay1978 3 months ago
@MikeKay1978 - yes u are correct he does promote gold as true money but he has it as a huge 5 waves down at present. Actually he is one of my heroes but I hop he has the wrong scale of fractal for gold and the 5 he assumes we did reach - I hope was only a 3 up and we have a huge extended 5 up to go. Regardless if silver gets to $25 I am buying big...
martialarm 3 months ago
Do yourself a favor - add the word deflation to your tag list. And depression and debt.
jvc929 3 months ago
@jvc929 we currently have a recession with monetary inflation and credit bubble. Credit is in a bubble and not gold. I think the straw that breaks the camels back is when interest rates become more realistic. How can you not have continual money printing with low interest rates and depreciation of the dollar?
charronfamilyconnect 2 months ago
@charronfamilyconnect Don't be fooled. Deflation is what is coming. It will become clear early 2012 as deleveraging expands and dollar increases in value when commodities fall and flight money moves from Europe into the dollar.
drkevincampbell 2 months ago
@drkevincampbell do your saying confidence will be restored to the US Dollar? What backs this other than confidence? There really isn't any intrinsic value in the artificial dollar? even Preschter says gold is real money. So you saying unreal money will be propped up? If so how long will this illusion last? Gold is real money so why wouldnt it go up in value?
charronfamilyconnect 2 months ago
@drkevincampbell Since the mountain of debt far exceeds the Fed notes and cannot ever be paid. What is there to stop the Fed from adding an extra zero on the end of our Fed notes? Do you honestly feel secure holding paper money that people perceive to have value, and can be manipulated and devalued at the discretion of the government/Fed or you think its safer to hold gold and silver(real money as Mr. Prechter states?). You be the judge of this!
charronfamilyconnect 2 months ago
Prechter has amazing insight.
DoNotCiv 4 months ago 4
@DoNotCiv yea..amazing insight to lose your money....the guy is never right short term
ednan9 4 months ago
@ednan9 His calls do tend to be early so from a trader's perspective I can see how that would be aggravating. I do think his reasoning is sound however and that he's right about the coming P3 collapse.
DoNotCiv 4 months ago
oh sry i thought it was from the mind of minolta!?
gonobdotcom 4 months ago
Wonderful, insightful video, thanks, so much for sharing this, 5 Stars *****!
stockfollower 4 months ago 6
lol @ the gloomy music
damoz89 4 months ago
Great interview - very informative!
getbo 4 months ago