Robert Prechter and James Turk on inflation vs deflation

Robert Prechter of Elliott Wave International discusses inflation and deflation with GoldMoney’s James Turk in this podcast. They also talk about GoldMoney, and the advantages of owning allocated gold stored at secure vaults. Both men differ on the question of whether or not inflation (defined as a rising price level) or deflation (when prices fall) will be the dominant economic trend in the years ahead. Prechter argues that governments and central banks will be unable to prevent a big collapse in financial markets, owing to debt defaults and massive contractions in bank lending. In contrast, Turk thinks that America is heading for hyperinflation, owing to the US government’s unwillingness to change its spending habits and the Federal Reserve’s continuing monetisation of government deficits. However, they agree that regardless of whether or not deflation or (hyper)inflation prevails, owning gold is still desirable — provided that it is held in allocated form in secure storage. James and Robert both see gold as insurance against financial chaos, and as a means of protecting yourself from a collapse in the value of stocks, bonds and real estate. This podcast was recorded on May 29 2012.
Video Rating: 4 / 5

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24 Responses to Robert Prechter and James Turk on inflation vs deflation

  1. SonOfAbba says:

    Well Jpcint, great point. But the issue of gold and money is one I like to think about. It is money precisely b/c it holds intrinsic value. It can not be hypothicated and rehypothicated away like a toxic CDS or other destructive derivative. Gold holds the 5 principles of Aristotle’s definition of money: Divisible, Consistent, Durable, Convenient, and contains intrinsic value.

  2. SidneyBoud says:

    If gold becomes money it will be worth several times what it was worth last time it was money. The gold is about the same but the population has exploded. Gold is worth the labor it will buy.
    Knowing that there will be great difficulties making gold or silver money again. It may take 100 years before gold is money. Of course we could cut the population to shreds.

  3. SidneyBoud says:

    I O U is he talking about loans to banks? They take your money and loan it out 9 times if 12% of the loans are lost there is nothing left. Then they have to tell 9 people that there money is lost.

  4. jpcint says:

    if gold = money,
    quantitatively, how much money is gold worth?
    The stock price of gold is not connected dollar for dollar with any currency.
    It is a commodity driven by the same group mentality any other commodity price is driven:
    price, volume, trends, elliott, fundamentals, sentiment…
    Also,” fundamentals” “linked” to gold do not directly impact gold price as
    Fundamentals can be interpreted differently.
    Good luck everyone.
    I will be attempting a short entry a current price levels.

  5. vonGleichenT says:

    Gold = Money

  6. TheChartProphet says:

    Great interview by two investment legends!

  7. mrzack888 says:

    wut do u mean “u guys”?? i kno u ain’t talking about me.

  8. TheTribster says:

    Gold is now starting its last Bull run which will take it to an all time high and simultaneously setup a 1oz purchase of 1 share of the DOW, this is likely to happen by as soon as the end of the year! Buy your PMs now because it is VERY unlikely pricing will be better than it is right now. We are going to see moves of 5% in a day become a common event, I know its hard to believe but we are about to see a RUN on PMs like never before! Don’t be a fool and continue to hold fiat currency, PMs NOW!

  9. nafism6969 says:

    what it comes down to my freind is GREED.
    greed is a curse. so is Usury.
    they both have a shelf life pal.
    unfortunately, the expiry date for u guys is near.

  10. nafism6969 says:

    u obviously dont no ur country well. the US GDP is high due to CONSUMPTION. not production. the whole worl is lending the US cash. and how do u repay it? by PRINTING money. i fyou HAD the capacity for repaying it you wouldnt NEED to print money. why don tyou have the capacity to repay? because ur GDP is based on CONSUMPTION. belive me, if the US was gone, the whole world would enjoi their OWN products which they PRODUCE, instead of giving it to the US (for u to consume)

  11. nafism6969 says:

    great. this is what we need. divergent views coming together to have a discussion. not a session of hyping up an asset gap fest.
    nice.

  12. nafism6969 says:

    BOTH inflation and deflation are BAD! what you need is a “stability”. right now, the macro -economy is exactly the OPPOSITE. its unstable!

    now, question is, what do u do when things r unstable? whats the go?

  13. brightspark1977 says:

    Can you please interview Bill Still?

  14. riverbalance says:

    Very informative and insightful.

  15. LP101A says:

    It is temporary deflation of the M1 money supply, but hyperinflation in the supply of money provided for certain wealthy individuals and Institutions (M2 and M3)…

  16. GoldSilverMedia says:

    Inflationist and Deflationist agree on one thing….Gold

  17. sgwarrenb says:

    tea party is not abt govt spending… tea party is about govt taxing!!! so how to spend more and taxing less? printing…

  18. bigbenff1 says:

    Great info guys!

  19. waldentree says:

    Shit is about to get seriously real. The dollar is king.

  20. TABOM2002 says:

    Prechter has been calling the top for at least 4 years. He is a lousy technical analyst. I used to have his subscription, he is never right.

  21. Digitaizen says:

    No one can predict future for sure, not in details, all ONE can do is to look at trends – most probable developments in a sea of possibilities. Either way fiat will die once the trust going to be broken by THE GREATEST DEPRESSION world has seen. How soon?! We are already in the midst of it. If you believe in “speeding” of time as in Mayans prophecies or analogous concept of exponential function (hockey stick curve) at play as Chris Martenson shows in his Crash Course, then it’s pretty soon – ye

  22. bammbamm12 says:

    OK – I’m dumb and these guys are experts. One says deflation is coming and the other says inflation is coming. Could you possibly have two opinions that are farther apart? Is it unreasonable to conclude that neither knows anything? OK, is it unreasonable to conclude that one of them knows nothing?

  23. Joehoops33 says:

    I don’t believe the dollar will collapse over night. It will happen in waves. We will have another downturn based on what is happening in Europe. People will panic and we will look back and say, well we printed 2 trillion and we didn’t see high inflation, lets do 4 trillion. Then we will see another crash and panic and instead of 4 trillion, we will do 10 trillion. After a few years it will catch up just like it eventually did to Germany.

  24. Joehoops33 says:

    Very great interview for sure. I agree with alot of what Prechter has to say, but where I differ is how quickly psychology can change when it comes to printing and it’s effects on inflation. When the market started tanking and panic set in, the demand was huge to do something big. 10 years ago, I doubt even Robert would have invisioned the amount of money that has been printed. These cycles don’t just happen overnight..they take years to devolop. One day 1 trillion will be nothing.

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