Market Myths Exposed: Inflation Is Not A Threat, Deflation Is

By: Nico Isaac | Fri, Apr 9, 2010
Print Email

Our free eBook reveals the 10 most common financial misconceptions

Most people are confident they can recognize a myth when they hear one: Wearing a hat causes baldness; eating a bunch of carrots gives you perfect vision; 'light' cigarettes are better for your health than the regular kind.

But what about this sentence: Inflation is the number one threat to the US economy? Ask the mainstream experts, and this statement is in no way a fabrication of the truth; it is truth itself. Case in point, this recent insight from a reputable news source:

"Given the extraordinary amounts of government spending, we believe inflation is likely to rear its ugly head." (CNBC)

It looks reliable. It sounds reliable. But the reality is different. That fact is the subject of Chapter Three in Club EWI's free educational eBook Market Myths Exposed, aptly titled "Myth No. 3: Worry About Inflation Rather Than Deflation."

With groundbreaking insight from EWI's president Bob Prechter, this chapter reveals how the most vital financial players have been led right up to the water of easy money. Yet, like the saying goes, no amount of incentive -- be it record low interest rates or trillions of dollars in federal bailouts -- has gotten them to "drink." Here, the "Market Myths" chapter sheds light on this global leverage fast:

Six pages of riveting charts and commentary later and there's no putting the pieces of this shattered myth back together: One by one, the key players in the creation and expansion of credit are adopting a stance of conservation and conservatism. This ultimately leads to a decline in the value of outstanding debt -- a precondition of deflation, not inflation.

Believe it or not, this is just the beginning. In all, Market Myths Exposed throws light on the TEN most common financial misconceptions via excerpts and charts from EWI's most popular editorial material of the last decade. Such as:

The complete, NO-COST report is just a Club EWI sign-up away. Simply click here to get started.



Nico Isaac

Author: Nico Isaac

Nico Isaac
Elliott Wave International

Nico Isaac writes for Elliott Wave International, a market forecasting and technical analysis company.

Copyright © 2009-2010 Elliott Wave International

All Images, XHTML Renderings, and Source Code Copyright ©