Precter forecasting strong dollar and deflationary depression

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switters's picture
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Precter forecasting strong dollar and deflationary depression

In a recent video Robert Prechter says the Dollar's Hit a "Major Bottom" and that a deflationary depression is coming.

Mish writes about it here, and Charles Hugh Smith adds his take here.

The gist is that, in the short term, the dollar is going up - not down - and deflation will reign.  Mish thinks it will continue for years, C.H.S. is more circumspect in his prediction.


Davos's picture
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Re: Precter forecasting strong dollar and deflationary ...

These are people I admire and respect, but I personally think Ben and the rest of the gang would gnaw their arms and legs off before getting a D(eflation) on their report card.

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Farmer Brown
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Re: Precter forecasting strong dollar and deflationary ...

 Prechter has made some major calls before, and some especially timely ones lately.  Benny on the other hand... I can't find a single thing he's been right about, ever!  Anyway, time will tell.  Place your bets, ladies and gentlemen.

rickets's picture
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Re: Precter forecasting strong dollar and deflationary ...

While the "easier" way out to the feds may be to print tons of money and inflate out of debt, I think it will be harder this time than in previous situations where this might have happened (Argentina, Zimbabwe).  The citizens of this country are far more informed now, and already starting to become quite aggressive with the expansions Obama is trying to push through.  Perhaps this anger from citizens will put a cap on the dollars the govt can print/spend relative to what we have historically scene?  Given this age of information - is it possible the people could prevent this?  If so, deflation would be very likely and the dollar would likely remain strong vs other currencies.


Not sure...just thinking out loud...

goldcountry's picture
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Re: Precter forecasting strong dollar and deflationary ...

Prechter's been saying the same thing for at least the last 7 years (that's when I first got interested in the precious metals and started following him)  - the dollar is going to rally and gold is going to crash. Gold was around 300 then and was going to go below 100 at any moment!!!. He has continuously stated that if gold surpassed such and such a level then he would admit he was wrong and stop his negative predictions but all he has done is just kept raising the bar again and again. First it was 400 gold when he would stop, then 500 etc. etc., after that I just quit paying attention to him all together.

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