Elliott Wave analysis indicates the Dow and S&P500 are in the middle of a large corrective after the large 5 wave decline from it’s high to it’s low in March. As far as the current Dow chart patterns go we should see a thrust down to 7500 – 7000 then a push up to 8000 which would complete the corrective before resuming the major trend down in Sept. That trend could take the Dow down to 5000, then 4000 and finally bottoming somewhere around 3000-2500. In fact the next leg down could be worse than the first.

We may not be able to stop it so we may just as well try to profit from it.

You mention the biggest deficit in history; the biggest property crash in history; biggest bankruptcy and biggest bailout in history…now for a Canadian perspective…
U.S. has added 50% more border agents at our border this year and since 2001 there has been a six fold increase of border guards at the border.

If 80% of the world’s debt is in dollars, and printing more dollars makes selling t-bills harder, which drives up interest rates, which increases the demand for dollars, how can there be inflation?

If monetary velocity is approaching zero, how can there be inflation?

If the foreign central banks, who control the flow of money in the world, and consequently have the most say in whether we get inflation or deflation, purchased 50% of yesterday’s 30 year t-bond auction, that will lose most of their value in an inflationary environment, how can there be inflation?

And then they got themselves a new mayor. The old mayor was sold to a circus side show where he sits between the fat lady and thin man as an object of little interest.