In this November 2009 inter­view, Robert Prechter speaks with Minyanville’s Kevin Depew about his early career, his big-picture defla­tionary out­look, the U.S. dollar, safe invest­ment strategy, what comes after defla­tion and more in this in-depth, two-part video.

By Patrick Wood, Editor Has the world gone mad? Can everyone really see clearly now?

I can see clearly now, the rain is gone, I can see all obsta­cles in my way Gone are the dark clouds that had me blind It’s gonna be a bright, bright Sun-Shiny day. Money and credit is con­tracting at Great Depres­sion rates while the stocks and metals rise to new highs. Bernanke says the reces­sion is over while the former chief econ­o­mist for the Bank for Inter­na­tional Set­tle­ments says we are headed toward another finan­cial and eco­nomic crisis. William White was the top BIS econ­o­mist from 1995 through 2008. He cor­rectly pre­dicted the orig­inal banking crisis and even bat­tled with Alan Greenspan over his easy credit policy as early as 2003. At the Sep­tember 14 Sibos con­fer­ence in Hong Kong, White just called for a “double-dip” reces­sion where the second dip could be sig­nif­i­cantly worse than the first. At best, he says we will have an “L” shaped reces­sion where we stag­nate like Japan did since the 1990’s. At the same time, Ambrose Evans-Pritchard reported that “US credit shrinks at Great Depres­sion rate prompting fears of double-dip reces­sion”:

“Both bank credit and the M3 money supply in the United States have been con­tracting at rates com­pa­rable to the onset of the Great Depres­sion since early summer, raising fears of a double-dip reces­sion in 2010 and a slide into debt-deflation.”

He gleaned this infor­ma­tion from a report issued by Inter­na­tional Mon­e­tary Research (Tim Con­gdon) which serves the global elite with a sub­scrip­tion rate of $5000 per year. Read the full story

Banking system health

The world of banking analysis is focusing on the sit­u­a­tion with CIT as the ulti­mate test of banking system health. This isn’t wise, but its the way it is. CIT received $2.3 bil­lion in TARP funds last year, but the gov­ern­ment refused to pro­vide a Read the full story