What is truth?

I could not go without writing a serious  parody of the above original comedy series, so be prepared to enter this guide,  which will hopefully offer a fraction of information in “the standard  repository for all knowledge and wisdom”.

This planet has a problem – and has had  this problem repeated throughout history – a problem that made most people  living through it unhappy for pretty much all of the time…and this involved  periods of inflation and deflation.

The objective of this article is to provide  what I think is an accurate version of inflation/deflation and what to expect  over the course of the next 8 years, based upon the Contracting Fibonacci  Cycle. Time points will be identified, followed by charts illustrating Elliott  Wave Analysis indicating why we are on the cusp of a major breakout in the  broad stock market indices and commodities. This analysis runs counter to many  deflationist views, which ties into the proposed definition that will be  described. This guide will be subdivided into sections that are based upon  names present within the 6 novels of the Hitch-Hiker’s Guide series.

As Per the Above Title

There are some deflationists who think we  are in a period of deflation…one noted definition of inflation is “a net  expansion of money supply and credit, with credit marked to market” and the  opposite for deflation.

A problem with the above definitions is  that they provide very broad definitions and often, these outcomes do not occur  until a “Tipping Point” has been reached. Malcolm GladWell wrote a book titled  “The Tipping Point” which I would strongly recommend everyone read. In a  nutshell, different systems, problems etc. do not follow linear relationships but  rather, a “tipping point” unique to a given system under study occurs. This  unique “tipping point” changes the balance of things, causing an accelerated  shifted shift to the upside or downside of a trend, based upon the unit of  measure under study.

Applying this thought to deflation, many  things happening in the news such as job layoffs, bankruptcies etc can  overwhelm senses to provide an empirical conclusion that deflation is just  around the corner.

The definition of inflation or deflation I  propose is a scalar model that comprises the integral of all components  (summation of the slope all components chosen to include in broad economic  sectors and measures) based upon the derivative of their measurements (rate of  change, as an example car speed (km/h, m/s) or money velocity). The derivative  components of each part of the equation represent the rate of change for each  chosen item by graphical representation to form a slope ($/month positive or  negative) that has an assigned probability (R2). Each item added up  can provide the integral, or summation as to whether or not inflation or  deflation is evident as a whole across the economy. Examination of individual  components offers visualized trending to determine whether or not a given  sector or defined measure is entering deflation or inflation.

full article at source: http://www.marketoracle.co.uk/Article36061.html

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