For those tempted to chalk up the financial troubles of “bricks and mortar” shopping malls to the rise of online shopping, consider this from USA Today (Jan. 27, 2017):
While online shopping is growing at a rapid rate of 15% a year, it’s still only 8% of all retail sales.
Why is the retail sector struggling then?
As the biggest credit bubble in history continues to shrink, consumer prices have stayed flat over the past several months, meaning there is ZERO sign of inflation in the economy — despite growing commitments from the U.S. government.
So what’s keeping inflation at bay, given all the stimulus money promised? The answer: Deflation — an overwhelming urge for consumers to liquidate their assets for cash.
And this new economic phase is finally becoming too obvious to ignore, as explained in recent commentary from the world’s largest technical analysis firm.
“The economy is moving into a critical new phase, an outright deflation in which ‘prices fall because people expect falling prices.’ Obviously, this implies an element of recognition, as efforts to protect against indebtedness and falling prices contribute to further declines. We can tell deflation is entering a new stage because of the language and ideas that financial observers now use to describe it.”
— The Elliott Wave Financial Forecast (September 2010)
So how do you protect yourself from deflation? The first step is to understand it.
Elliott Wave International has put together a complimentary 90-page ebook, now updated with 30 new pages of commentary from Robert Prechter through 2010. The ebook is designed to help you prepare, adapt, survive and prosper in the event of deflation.
Prechter has spent most of the past decade as an outcast among financial forecasters, because of his certainty that deflation would soon shock virtually all investors – despite the policy makers and string-pullers who promised to prevent it.
To show you just what Prechter’s deflation forecast was up against, consider this: Experts from all schools of the economics profession said deflation was “utter nonsense,” a preoccupation of “small children,” and as likely to happen as “being eaten by piranhas.” How could deflation begin when the entire economics profession unanimously said it’s not possible?
Yet there’s no question some deflation HAS occurred. The question now is, will it get worse?
In his new 90-page ebook, you’ll see why Prechter argued deflation was likely, and why he was certain a monumental deflationary trend would unfold sooner rather than later.
Remember, deflation is extremely rare; it last happened in America almost 80 years ago. So, a forecast of deflation that proves accurate is a monumental feat – especially when all the “experts” disagree.
So if economists were unable — or worse, unwilling — to warn you in advance about the threat of deflation a few years ago, what are they not warning you about now?
It’s time you gave the deflationary scenario a serious look.