24
02/10
Bob Prechter Calls for Armaggedon and This Time He Just Might Be Right
by John Galt
February 24, 2010
Bob is calling for Armageddon again and by gosh he might just be right this time. Why do I suddenly shift my opinion on this issue even though I disagree with Elliot Wave theory 61.8% of the time. This time though I am not making some sort of rash assumption, I’m basing it on a fundamental aspect where the Deflationists might finally get their wish as will the gold bugs.
The problem with the calling for a crash in 2010 is that the Federal Reserve has thrown the kitchen sink at the problems and unfortunately for them, the foreigners are throwing kitchen sinks back at us, as are his member banks, the American public, and the morons in Washington, D.C. who are throwing cast iron bathtubs at the world economy by not listening to the screams of the business community (1931-37 deja vu) nor the frustrations of the states (1837-1841 deja vu) and the financial complications their are imposing on the United States’ economy. The next leg down could be the final deleveraging and collapse which is needed and if Benron Bernanke and his cast of minions fail to follow the lead of the markets by allowing the NECESSARY deflationary forces to take effect and wash out all of the bad debt, then the reaction to control this action will have to be so massive that his lessons that he claims to have mastered from the 1930′s would indicate a tripling or greater level of Quantitative Easing.
Thus bet on the POTENTIAL for a major deflationary bout and do not discount Bob Prechter’s prediction entirely but also do not wager against a corrupt central banking system and Federal government’s potential to overwhelm the system with fiat funny money and actually create a worse fate, a hyperinflationary firestorm which will rage out of control.
Either solution is unpalatable by the way with elections coming up this year and the wild card:
A collapse of the European Union.
If we see the dissolution of the E.U., which I think we will by next year, the United States is at risk of seeing much worse in the months to come.
More on that in the next editorial.
