By Richard Russell
The market closed on its rear end. Dow down over 300 points. Is it a 10% correction or a bear market? Either way we are out of this market or have small positions.
The fact that nobody wants to face: after WWII ended, in 1945, the world went on an extended trend of inflation and leveraging. This trend ended somewhere around the year 2000. Since then, a giant and extended top has formed. This inflationary trend has turned down and the world is facing years, even decades, of deflation, deleveraging and correction.
The world decline can be compared to the economies of the world spitting in the faces of politicians everywhere. To put it mildly, the voting public in various nations is forcing politicians and central banks everywhere to confront the forces of deflation and deleveraging. The Federal Reserve of the US began fighting the deflationary forces with the process known ... Log in or subscribe to continue reading.