It is our old friend the gold-silver ratio as represented by GLD-SLV. They demanded the dollar was dead... they demanded that commodities are your savior... they demanded that it was all inflation, all the time.GSR argues along with Uncle Buck that it may be time to open wide for a heaping helping of Prechter, regardless of what the basher at IKN has to say. ;-)
Prechter must be right from time to time. It is a law of the current system. Prechter is a lever, but while he is being pulled, a lot of destruction can happen in a short amount of time.
The draining of liquidity is necessary for certain Wizards hiding behind tattered curtains. Where Prechter goes wrong is in his view that deflation can actually unwind the near limitless powers arrayed against it. Only when the sheep lose total confidence does that view have any chance of coming in. Even then, in my opinion a total loss of confidence would more likely result in hyperinflation than deflationary Armageddon. But in the interim blips, Prechter gets to be right.
