Elliott Wave InternationalmyEWISocioniomics.Net

America's Economic Engine Heads for an Overhaul
The economy continues to sputter.

By Bob Stokes
4/26/2013 4:45:00 PM

Nothing short of a complete overhaul will get the U.S. economic engine purring again. The financial mechanics have been trying to get that engine firing on all cylinders for five years now. They've used every tool at their disposal. Yet the engine continues to sputter. There appears to be only one fix.

Filed Under: bloomberg, conquer the crash, consumer confidence, consumer price index, consumer spending, debt, deflation, economic depression, economic indicators, Elliott wave, monetary policy, monetization, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


Every Big Economic Collapse Has a First Domino
When will the dominoes begin to tumble, or has it already begun?

By Bob Stokes
3/26/2013 4:45:00 PM

Financial history shows that every major credit boom is followed by a credit bust. The latest round of financial headlines remind us that unsustainable debt is crippling Europe. In the U.S., heavy debt burdens have put local and state governments in deep financial trouble. Federal debt rapidly approaches $17 trillion. What will be the first financial domino to fall?

Filed Under: 1929 Stock Market Crash, banks, Ben Bernanke, bloomberg, central banks, debt, economic indicators, Elliott wave, European debt crisis, gross domestic product (GDP), Interest Rates, monetary policy, quantitative easing, Robert Prechter, soverign debt crisis, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


Gold Bulls Cry Inflation, Again
Here's what the evidence says about gold as an 'inflation hedge'

By Nico Isaac
3/15/2013 6:15:00 PM

Conventional economic wisdom says that inflation is to gold prices what rabbit is to a dog on a leash. In other words: The one causes the other to break loose and run wild. This notion was all-too apparent on March 15. That day, a Labor Department report revealed a .7% rise in US consumer prices in February, the sharpest increase in four years. When gold prices shot higher at the open, the usual experts put two and two together...

Filed Under: Elliott wave, Gold, gold futures, inflation, monetary policy, precious metals, quantitative easing, silver, Traders

Category: Gold and Silver


Will the Fed's Next Move Decide Whether Gold Prices Rise or Fall?
Does monetary policy really drive the precious metal's trend? See the answer with a look at the recent past

By Nico Isaac
2/25/2013 6:15:00 PM

So far this year, gold prices have fallen 10% -- the lowest level in seven months. So it's no surprise that precious metal investors are now asking out loud what they've been quietly wondering for some time: Is 2013 an unlucky number for gold bulls? According to the mainstream experts, the Federal Reserve's future stance on monetary policy holds most of the answer. The way they see it now is the way they've always seen it. The central bank's decision on interest rates pulls the strings of gold prices the way Geppetto controlled Pinocchio.

Filed Under: Elliott wave, Gold, Interest Rates, monetary policy, precious metals, Traders, U.S. Federal Reserve (the Fed)

Category: Gold and Silver


Does More Monetary Stimulus Mean Higher Gold Prices? (Update)
Central bank charts of gold prices & stimulus initiatives since Sept. 2011 set the record straight

By Nico Isaac
2/7/2013 12:15:00 PM

I recently discussed the widespread belief that monetary stimulus from global central banks is to gold prices what doping is to Lance Armstrong's cycling speed. Stop the money printing and low interest rates, and you significantly slow down gold's gains. The mainstream notion was again alive and well on Feb. 7, the day of the European Central Banks' latest policy meeting. In the hours leading up to the event, the rumor meter tipped in favor of further vigilance and "opened the door to another rate cut." 

Filed Under: Bank of England, banks, central banks, european central bank, Gold, monetary policy, quantitative easing, stimulus package, Traders, Treasury bonds, U.S. Federal Reserve (the Fed)

Category: Gold and Silver


Does More Monetary Stimulus Mean Higher Gold Prices?
Central bank charts of gold prices & stimulus initiatives since Sept. 2011 set the record straight

By Nico Isaac
1/30/2013 5:45:00 PM

Ask any mainstream economist worth his or her salt about the relationship between central bank monetary policy and precious metals, and you'll probably hear something like: Stimulus is to gold prices what doping is to Lance Armstrong's cycling speed. Stop the money printing and low interest rates, and you significantly slow down gold's gains. Are they right? Is there a correlation between monetary easing and rising gold prices?

Filed Under: Bank of England, central banks, Elliott wave, Federal Open Market Committee (FOMC), Gold, Interest Rates, monetary policy, quantitative easing, stimulus package, Traders, Treasury bonds, U.S. Federal Reserve (the Fed)

Category: Gold and Silver


The Silver Prices Playbook
Should silver bulls hang their hat on monetary stimulus and the safe-haven premium?

By Nico Isaac
1/22/2013 5:30:00 PM

Since the start of 2013, demand for silver bullion has reached such a fever pitch that by Jan. 17, the U.S. Mint temporarily sold out of 2013-dated American Silver Eagle coins -- the first white-metal run of its kind in four years. At the same time, silver futures have rallied 9% to a one-month high. Now, page one of the mainstream economic playbook reveals that there are two main factors contributing to silver's surge...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Elliott Wave trading, monetary policy, precious metals, safe haven, silver, silver futures, stimulus package, U.S. Federal Reserve (the Fed)

Category: Gold and Silver


Two Signs That Deflation is Far From Over
A key economic index turns south

By Bob Stokes
12/14/2012 4:00:00 PM

The Producer Price Index decline is happening in tandem with a notable reversal in consumer sentiment. The Federal Reserve's machinations -- which includes the Dec. 12 announcement of $45-billion in monthly Treasury bond purchases -- will not stave off a developing deflationary trend. How much farther does the economic cycle have to go before it reaches the bottom?

Filed Under: conquer the crash, deflation, economic indicators, Elliott wave, liquidity, monetary policy, quantitative easing, Robert Prechter, sentiment, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


Extra, Extra, WATCH All About It: A New Video on Gold & Silver
A special video reveals a "key, near-term juncture" in both gold and silver

By Nico Isaac
12/12/2012 5:30:00 PM

On Dec. 12, gold investors waited with baited breath for the release of the minutes from the Fed's Open Market Committee meeting. "Fed May Hold the Key to Gold's Riddle," read one Financial Times headline. The key issue? Whether the Fed would keep its finger on the shiny, green monetary "stimulus" button. If only the reality was that cut and dry.

Filed Under: Elliott wave, Elliott Wave Principle, Federal Open Market Committee (FOMC), Gold, monetary policy, QE2, quantitative easing, silver, Traders, U.S. Federal Reserve (the Fed)

Category: Gold and Silver


How to Protect Your Wealth from a Monetary Crisis
"The highest level of safety on the planet."

By Bob Stokes
9/21/2012 3:30:00 PM

In the second edition of Conquer the Crash, Robert Prechter wrote: "[The SafeWealth Group] has researched banks, insurance companies and debt issuers and isolated those that it believes have the highest level of safety on the planet. It has also identified wealth managers who focus primarily on protecting and preserving capital ..." Learn more about how to keep your assets safe...

Filed Under: conquer the crash, credit crisis, deflation, economic depression, Elliott wave, monetary policy, risk management, safe banks, U.S. dollar, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


EUR/USD: What Does the Recent Euro Strength Mean for the U.S. Dollar?
Elliott Wave International's forex expert sheds some light on the dollar weakness.

By Vadim Pokhlebkin
9/17/2012 5:15:00 PM

Last week, the euro-dollar exchange rate, a.k.a. EUR/USD, went "through the roof" -- the roof being the $1.30 price level, that is. But it didn't stop there: On Friday, September 14, EUR/USD climbed as high as $1.3170. So I simply had to tap on the shoulder our resident forex expert, Jim Martens (who also edits our trader-focused Currency Specialty Service) and ask him what is going on.

 

Filed Under: Ben Bernanke, Elliott wave, euro, forex, monetary policy, quantitative easing, U.S. dollar

Category: Currencies


Bernanke's Bigger Bubble: QE-3 and the Coming Economic Crash
Why monetarist theory is flawed

By Bob Stokes
9/14/2012 5:30:00 PM

We've all heard the definition of insanity: doing the same thing over and over and expecting a different result. Why should we think QE-3 will work when the previous two failed? (Don't think they failed? Then ask yourself why we need a third one.) Monetary policy cannot make the global credit bubble simply vanish. Only a deflationary crash can do that. The chart below reveals why...
 

Filed Under: 1929 Stock Market Crash, Ben Bernanke, central banks, conquer the crash, credit crisis, credit rating, debt, deflation, economic depression, economic indicators, Elliott wave, Interest Rates, liquidity, monetary policy, quantitative easing, Robert Prechter, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


When Will the Fed Raise Interest Rates? When the Market Says So
The Federal Reserve Bank's interest rate policy is not as "independent" as most people think

By Vadim Pokhlebkin
8/30/2012 5:15:00 PM

You probably know what event dominates this week's U.S. economic calendar: the August 31 Federal Reserve chairman Ben Bernanke's speech at the policy meeting in Jackson Hole, Wyoming.

Filed Under: Ben Bernanke, monetary policy, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


What's a Central Bank To Do?
What if the ECB has an ace up its sleeve, and the next round of stimulus FINALLY does the trick?

By Vadim Pokhlebkin
8/1/2012 12:15:00 PM

With so much focus on the hopes of further economic stimuli by central banks, it's important to consider what difference (if any) the already HUGE amount of economic stimulus has made. Let's look at Europe.

Filed Under: AEX, Bank of England, Ben Bernanke, CAC40, DAX, diversification, Elliott wave, europe, european central bank, European debt crisis, european markets, European Union (EU), eurozone, FTSE, golden ratio, Interest Rates, International Monetary Fund (IMF), monetary policy, quantitative easing, Swiss Market Index (SMI)

Category: European Markets


(Video) ECB and BOE: Why Quantitative Easing Won't Work
Watch minute 2:20 of this free webinar clip for a very vivid answer

By Vadim Pokhlebkin
7/20/2012 5:00:00 PM

Today's magic bullet for fighting the ongoing global economic troubles are the monetary stimulus and quantitative easing programs enacted by the major central banks. Will all these programs work? Probably not. Why? Watch minute 2:20 of this webinar clip recorded by our European analyst Brian Whitmer for a very vivid answer.

Filed Under: Bank of England, debt crisis, european central bank, European debt crisis, Interest Rates, monetary policy, quantitative easing, U.S. Federal Reserve (the Fed)

Category: Global Markets


The Federal Reserve Has No Cure for What Ails the Economy
Learn why the credit crisis will inevitably conclude in a deflationary depression

By Bob Stokes
7/18/2012 3:30:00 PM

The Federal Reserve will not be able to prevent a global credit collapse. EWI's Financial Forecast Service offers ideas on how to position yourself. These are ideas you can put to work right away. The unprecedented build-up of credit in the past 80 years means the economic collapse could be swift. It's best to prepare now...

Filed Under: banks, Ben Bernanke, central banks, credit crisis, credit rating, debt, deficit, deflation, economic depression, economic indicators, Elliott wave, european central bank, European debt crisis, Federal Open Market Committee (FOMC), Greenspan, liquidity, M3 money supply, monetary policy, monetization, QE2, quantitative easing, Sovereign Debt, Treasury bonds, U.S. Federal Reserve (the Fed), unemployment

Category: U.S. Economy


Gold Rises 8 Days in a Row: The Beginning of a Beautiful TRENDship?
Latest trend analysis inside EWI's Metals Specialty Service reveals whether after 8 days of rally, the objective Elliott wave picture continues to paint gold in a bullish light

By Nico Isaac
6/19/2012 1:15:00 PM

On June 18, gold prices saw their 8th straight UP day. According to the "fundamental" analysis experts, one main factor was fueling gold's rally: "Hopes the US Federal Reserve may launch more measures to stimulate the world's largest economy." Find out why this kind of fundamental logic doesn't work.

Filed Under: Elliott wave, Elliott Wave trading, europe, fundamental analysis, Gold, monetary policy, precious metals, quantitative easing, stimulus package, U.S. Federal Reserve (the Fed)

Category: Gold and Silver


3 Heavyweight Bulls: Is the Bear On the Ropes?
Stock market bear: going down for the count?

By Bob Stokes
5/2/2012 4:30:00 PM

What a way to kick off May: the Dow Industrials close at a four-year high and three icons of the 1990s bull market basically say we've only just begun. Is investor psychology too optimistic?...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, financial forecast, herding, investor psychology, market forecasts, monetary policy

Category: Stocks


European Central Bank: “Great White Fear” Takes A Bite Out of Recovery
EWI’s Global Market Perspective foresaw the shift in European banks from lenders to savers via one remarkable chart

By Nico Isaac
4/20/2012 5:30:00 PM

It’s been over two years since the European Central Bank began its open-heart surgery of the eurozone's anemic economy. So far, the procedure has included an unprecedented $3 trillion-plus in bailouts, monetary transfusions, AND toxic debt transplants. Yet, according to a recent slew of discomforting news reports, the economies across the pond would still flatline in seconds without constant life support.

Filed Under: bailouts, banks, central banks, Club EWI, credit crisis, debt, debt crisis, europe, european central bank, European debt crisis, eurozone, monetary policy

Category: European Markets


London Prices Falling Down, Falling Down: What Inflation?
EWI's European Financial Forecast has a mountain of evidence proving that the looming threat in Europe is not inflation.

By Nico Isaac
4/17/2012 3:15:00 PM

Despite what you may have heard about ever-higher prices on High Street -- London's equivalent of the shopping nexus Rodeo Drive -- the real numbers do NOT lie: Since topping in late 2011, both Britain's Retail Price Index and Consumer Price Index have fallen to multi-year lows. Today, we present a "mountain of evidence" against the growing legion of Europe's die-hard inflationists.

Filed Under: Bank of England, central banks, europe, european markets, inflation, Interest Rates, monetary policy

Category: European Markets


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