Why Deflation Is Inevitable

By Delwyn Lounsbury - THE DEFLATION GURU

A 90 PERCENT DROP IN MOST ASSET VALUES BY 2016!  WHY?

This website is about deflation, the inflation deflation debate and the reasons why the Greater Depression are inevitable.  Hurry!  The crash is coming on fast.  You need this information to survive the coming deflationary depression.

My name is Delwyn Lounsbury, Eagle Scout and president of my 4-H club in my youth.  While only a high school sophomore, I bought my first real estate. I then published "The Economic Survival Letter" in the late 1970's about real estate, stocks, gold and the economy during inflation. 

As a real estate agent in the San Francisco area of California since 1968, I have seen hyperinflation first hand.  The $20,000, three bedroom, 2 bath, 1,250 square foot home I sold back then ramped up to a whopping $500,000 at the peak in 2006.  Amazingly, that same year it was financed with a nothing down "liar loan" where the buyer didn't even have to prove their income if their credit score was high enough.  For years my real estate card read "Inflation Survival Counseling."  Not anymore!  Google "The Deflation Guru" or "Delwyn Lounsbury" and you will get close to 60,000 hits.  My mission is to help people prepare for THE Greater Depression.

I am here to say we have had our runaway inflation or hyperinflation led by our spendthrift representatives in government in cahoots with the Federal Reserve Bank - a monopoly and fraudulent cartel.  Next comes deflation and hyperdeflation and there is nothing anyone can do about it.

The Greater Depression will be three times larger and three times longer than the 1930's great depression.  The world will experience the pain of the cure for credit inflation - a nasty credit deflation economy and the rest of the Greater Depression which actually started in 2000 with the dot com stock peak - a bubble mania climax.  Real estate, stocks and most other assets will drop 90% from peak and bottom in years 2016 to 2018.  Even gold may drop in half by then.  Unemployment will be 30% plus.  Why?

IT IS GOING TO BE MORE IMPORTANT TO HAVE THE RETURN OF YOUR CAPITAL THAN TO HAVE A RETURN ON YOUR CAPITAL IN THE YEARS AHEAD.

The world economy actually peaked with the dot com stock market climax blow-off top in 2000. First real estate tanked.  Now, stock and bond markets are experiencing a big 13 year top.  

Our paper money is by fiat.  That is French for, "let it be made."  It's all a big ponzi pyramid scheme.  BEWARE OF FIAT MONEY!  Lobby, support and subscribe to private money backed by gold or else inflation comes roaring back after 2020.  Don't let government control the money ever again.

Remarkably, CASH IS KING in a  hyperdeflation depression.  Its value increases as everything else looses value.  You can buy a bigger better home free and clear if you just wait and hold on to cash until the bottom in 2016 - 2018.

Deflation Definition:  A recession is when your neighbor is out of work. A deflation is when you are the one out of work.  A recovery is when President Barack Hussein Obama is out of office. 

The cycles end will mean a stock market crash.  The Dow will be below 1,000 at that time.  Prices will not come back for years and years.  The buy and hold investment strategy (because in the long run you will come out ok) does not work when the big developing, deep, dark, dangerous, deflation economy and GREATER DEPRESSION comes a knocking.

The whole world is experiencing the ending of an eighty year Kondratiev wave business cycle (see article) that went way overboard due to wholesale fiat paper money creation and fractional reserve banking.  The world economy morphed into an electronic money creation credit inflation climax binge.  This is a new insanity creating money with just a computer entry.  

High unemployment is setting up a snowball effect - a vicious circle cycle of layoffs upon more layoffs.  People don't buy as much.  Then businesses have to fire more workers because sales are slow.  This is the "Multiplier Effect" in economics in reverse.  Look it up.  It feeds on itself.  Plus, it goes a lot faster on the way down than on the way up.  No one, including the federal government, can stop the pendulum from swinging all the way to depression.  The only cure for inflation is deflation - it's a healing process.  Read our articles about Austrian economics, Kondratiev wave theory, Elliott wave principle and socionomics to get "smart money" understanding of what is really happening.  You won't find these basic economics truths, insights and teachings anywhere else.

Barack Hussein Obama, a community organizer (communizer) from the politically corrupt city of Chicago.  He is a for sure a socialist and may well be a communist/Marxist turning fascist on us.  Fascism is when a leader bashes business people and the military into submission then runs roughshod over the judicial, legislation and executive branches of government.  Bad news!  His ideas are completely opposite of capitalism and free enterprise that made this nation great and that create jobs.  He is ruining the U.S. Constitution, making things worse and taking our freedom and liberty.  Obama wants the U.S. to get wrapped up around the axle.

Obama, Franklin Delano Roosevelt, Alan Greenspan and John Maynard Keynes along with many other leftist social scientists and Neo-Keynesian bureaucrats of both political parties are the ones whose names will be mud in the future for spending us into oblivion by growing the size of government. 

This is not what our freedom favoring founding fathers had in mind when they wrote the Constitution.  According to them, money was to be specie - real gold, silver and copper coins.  Look it up.  The US constitution still says all money will be specie to this day. 

In fact, these "Big Brother", Orwellian, wealth redistribution, utopia, power elitist, oppressive, power hungry, police state, tax us into oblivion, take our freedoms, take our rights, take our guns, big government, socialistic, Council On Foreign Relations, United Nations, warmonger, communist, Marxist, fascist, new-world-order, Trilateral Commission, one-world-government ideas are TYRANNY. 

We need to stand up for our rights and LIBERTY everywhere we can or we can kiss our own FREEDOM good-bye.  We will soon be told what to do, how to act, where to work, where to live and what to think.  Is this the life you want for your children and your children's children?  I don't think so.  Stupid is as government does.

Stand up and be a free market thinker for your children's sake.  Be a contrarian.  Be a renegade.  Live your life to the fullest.  These are historic times.  Don't back down!  Protect the Constitution's principles.  The Constitution is getting hammered by Barack Hussein Obama right now.  Only private money backed by gold can save us.

Do not trust government or the fraudulent cartel and monopoly the Federal Reserve.  It is a trap!  The FED works for the Anglo financial power elite (rich bankers, who actually own the corporate -not traded on any exchange- shares).  They have been slowly trying to take our LIBERTY since the banksters met in secret on Jekyll Island off the coast of Georgia to form the FED in 1913.   The value of the dollar is now less than 5 cents from its 1913 value. The new-world-order is right out of George Orwell's book "1984."  A “Big Brother” one-world-government in the disguise of a cap-and-trade agreement or the U.N. is next.  It will probably be controlled by the IMF (International Monetary Fund) or the World Bank and of course the Anglo financial power elite.  Already, we are letting the UN run the show and letting NATO do the fighting in Libya.  Beware!

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My reading of history convinces me that most bad government results from too much government - By Thomas Jefferson

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THIS DEFLATIONARY DEPRESSION IS A SEA CHANGE THAT WILL KICK YOUR BUTT IF YOU ARE NOT PREPARED AHEAD OF TIME.  HURRY!  BEFORE IT IS TOO LATE! HURRY AND SAVE YOURSELF AND YOUR FAMILY SO THAT YOU CAN STAY OUT OF THE SOUP LINES AND TENT CITIES.

My mission:  TO MAKE A POSITIVE DIFFERENCE IN THEIR LIVES AND TO HELP PEOPLE SURVIVE DEFLATION AND THE GREATER DEPRESSION

So you can avoid risk, worry, losses, mistakes, doubt, discomfort, danger, embarrassment, drudgery, poverty, hunger, business failure and ruin.

YOU HAVE BEEN FOREWARNED!  BE PREPARED!  BEFORE IT ITS TOO LATE!
HYPERDEFLATION IS NEXT!  HURRY!  THE CRASH IS COMING!

Be Prepared is the Boy Scout motto.  Join Club EWI (Elliott Wave International) at links at my site.  I am an Eagle Scout - Trustworthy, Loyal and Honest with you.

Copyright 2011 by Delwyn Lounsbury - THE DEFLATION GURU
Use of this article allowed with attribution back to:
http://www.deflationeconomy.com