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Global Deflation: Protect Your Wealth from What the Majority Do Not Expect
Shield your wealth before trusted facilities close their doors

By Bob Stokes
Fri, 15 Feb 2013 16:15:00 ET
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Last month the economy of the United States unexpectedly shrank by 0.1% in the fourth quarter. 

Meanwhile, "U.S. industrial production unexpectedly fell in January," reports Reuters.
 
Deflationary forces are affecting more than just the American markets. In fact, they're even stronger across the pond.
 
Consider the latest gross domestic product figures from the European Union.
 
European economies shrank in the fourth quarter at their fastest rate since the depth of the financial crisis in 2009. ...
 
In the euro zone, economic output shrank 0.6 percent from October through December, compared with the previous quarter. ... That came after a decline of 0.1 percent in the third quarter.
 
While economists had expected a decline in the fourth quarter, they did not expect it to be quite so big. ...
 
Almost every one of the euro zone’s 17 members suffered a drop in gross domestic product. In the three biggest euro economies, G.D.P. fell 0.6 percent in Germany, 0.3 percent in France and 0.9 percent in Italy.
 
New York Times, Feb. 14
 
This news is especially sobering because it goes beyond the usual suspects of troubled European economies and includes the euro zone's two biggest economies.
 
The euro zone's accelerating economic contraction should serve as a warning sign to anyone who believes the global economy is on the road to recovery.
 
Don't forget: Europe is where the 1929-1932 Great Depression started.
 
Europe’s economy is walking a psychological tightrope similar to Germany in the early 1930s. ... A study by Knut Borchardt, an economic history professor at the University of Munich, showed that the popular press only started using the term deflation with any frequency after 1931. ... Today’s press is similarly disinclined to print the d-word.
 
European Financial Forecast, January 2013
 
Will history repeat itself?
 
The majority, including most in the financial press, do not expect deflation. In fact, the day after the New York Times published Europe's latest GDP figures, you can't find a similar story that's prominently featured on the homepages of the major financial websites.
 
Of course, the financial press has a knack for ringing the alarm bells after a major trend change becomes obvious.
 
But you need to prepare beforehand – particularly when deflationary pressures first become obvious – because opportunities to protect your wealth will close shut once a deflationary trend is well underway.
 
Obviously, there are no guarantees regarding any currency or institution. Yet keep in mind what Robert Prechter said about the SafeWealth Group's 200-page manual, Wealth Preservation in Very High-Risk Financial Times:
 
If you have serious money to protect, read this guide now, while you can still think calmly and while authorities still allow you to act in your financial defense.
 
You can learn how to access safe storage facilities by reading Wealth Preservation in Very High-Risk Financial Times. Elliott Wave International is making this publication available to the public.
 
 
 
 
 
 
 

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