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How to Handle an Economic Implosion
There are ways to prepare for deflation
By Bob Stokes
Tue, 10 Apr 2012 15:45:00 ET
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I came across some research on the subject of worry. Here's how it was presented:
 
Things People Worry About:
 
  • things that never happen - 40%
  • things which did happen that worrying can't undo - 30%
  • needless health worries - 12%
  • petty, miscellaneous worries - 10%
  • real, legitimate worries - 8% 
Of the legitimate worries, half are problems beyond our personal ability to solve. That leaves 4% in the realm of worries people can do something about.
 
I thought about our gigantic national debt and weak economy. These seem to fit into both subcategories of "real" worries. You can't do much as an individual to solve the nation's debt and economic problems, yet you can prepare for a worsening economic downtrend.
 
Do we see evidence for an economic turn for the worse?
 
Well, consider that the evidence is so overwhelming that it took 456 pages of the second edition of Conquer the Crash to cover it. And since that book published, Robert Prechter has consistently devoted the monthly Elliott Wave Theorist to the facts and evidence behind his forecast.
 
Here's a chart from the book that was updated in our March Financial Forecast:
 
 
 
  
The downturn from 2008 is critically important, as it shows that after an almost unbroken 60-year climb, the contraction is underway. It surely has much further to go, because it is still a third higher than it was at the outset of the last debt deflation in 1929.
Financial Forecast, March 2012
 
The rating agencies are well aware of what the above chart means. You probably know that Standard & Poor's downgraded U.S. debt from the nation's long-standing triple-A to AA+. Now, another rating agency has taken their rating even lower:
 
Rating firm Egan-Jones cuts its credit rating on the U.S. government to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
CNBC.com, April 5
 
In the latest Theorist, you'll find more evidence of a deflationary trend and learn of two facilities where you can keep your money safe.
 
The Elliott Wave Theorist, Financial Forecast and Short Term Update comprise our flagship Financial Forecast Service.
 
Tell us that you want to look at our Financial Forecast Service risk-free, and we'll rush a FREE copy of the second edition of Conquer the Crash to you. This book will specifically inform you about how to handle the coming economic implosion -- plus how to prosper.
 
The second edition of Conquer the Crash can be a highly useful guide if you:
 
  • have any debt
  • own real estate
  • want answers about the safest banks
  • run a business
  • want answers about the highest-rated insurers
  • want insights into asset allocation during a deflationary depression 

 

 

Tags: conquer the crash, debt crisis, debt downgrade, deflation, economic depression, great depression, history, safe banks
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