Common wisdom out there: we are already half way through the correction for stocks.

Tony Dwyer from Cannacord Gennuity securities (and other analysts and agencies you never heard of before) is (are) out today (recently) saying that he thinks the correction is about half over.   Trust me folks, this guy is clueless.  He's as much of a patsy as the next guy.  He thinks stocks must on average go up 9-13% per year because of inflation.  He has no idea that the money supply is actually dominated by credit.  While the monetary base will never deflate because the fed won't let it, the credit will deflate because the fed has no control over it once the defaults begin.  The fed is not nearly big enough to backstop all of the bad, highly leveraged bets that have been made.

The inflation damage has already been done over the past 100 years.  Now there is a huge bout of deflation - credit deflation - that is going to be running the show for several years to come.  It's only after the great credit crash is done and all the defaults are behind us that the massive inflation  or hyperinflation is likely to happen and it won't be happening for the reasons people think.  Sure the government will be printing up more money, but not at a rate of 50% per year or more.  What WILL be happening is that people will be expressing their distrust of US government by not holding dollars.  It is the rapid increase in velocity of money - what von Mises called a crackup boom and what more modern economists label a "currency event" which is how the hyperinflation will occur.

The money has already lost all its value since it is tied to nothing.  That is how the rapid inflation happens at a rate far beyond the new printing.  It is tied to loss of confidence in a con job that has been running since 1913 when the federal reserve was born.  Again, the money is already worthless all that is left is the reveal.  First massive deflation and a major, historically significant crash and then hyperinflation.  That is the sequence that I have been talking about for years under the heading of a "supernova economy".

Well, I give the bounce until Tues-Wed latest and then the turn down into the 3rd wave should come and with it should come some shock and awe.  Don't try to tie it to any news.  The charts say this is coming no matter what the news is and the charts are the only thing that have ever helped me time stock trades.