{"id":33994,"date":"2012-12-05T03:24:00","date_gmt":"2012-12-05T08:24:00","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=33994"},"modified":"2012-12-05T03:24:00","modified_gmt":"2012-12-05T08:24:00","slug":"in-1929-deflation-started-in-europe-before-overtaking-the-u-s","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/12\/05\/in-1929-deflation-started-in-europe-before-overtaking-the-u-s\/","title":{"rendered":"In 1929, Deflation Started in Europe Before Overtaking the U.S."},"content":{"rendered":"

What Happens in Europe Will Not Stay in Europe <\/span><\/h3>\n

By Elliott Wave International<\/span><\/h3>\n

More than 1,500 years after the fact, scholars still debate the causes of the Roman Empire’s fall.<\/p>\n

What historians do<\/strong> agree on is that the crumbling empire’s final days were marked by economic contraction, a struggle to fund Rome’s routine affairs and excessive debt.<\/p>\n

Sound familiar?<\/p>\n

Mark Twain said, “History doesn’t repeat itself, but it does rhyme.”<\/p>\n

That quote seems to apply when economically comparing the Roman Empire and the United States.<\/p>\n

Today’s superpower also faces a mountain of debt and a slow economy.<\/p>\n

Unlike<\/em> then, however, the modern economy is global.<\/p>\n

So an economic downturn in one major area of the globe is likely to affect another. In fact, even during the Great Depression (long before the phrase “global economy”), Europe was exporting to America.<\/p>\n

But one historic export was not the kind that the U.S. welcomed.<\/p>\n

The economy is clearly vulnerable to a debilitating wave of debt deflation. The threat is approaching quickly from an important source: Europe. The same sequence of events occurred in 1929, when deflation started overseas before lapping onto U.S. shores.<\/p>\n

The Elliott Wave Financial Forecast<\/em>, January 2012<\/p>\n<\/blockquote>\n

The Financial Forecast<\/em> has long kept a careful eye on the threat Europe’s debt crisis poses to the U.S. economy.<\/p>\n

The economic slowdown that EWFF characterized in January as Europe’s “top export” is finally reaching foreign shores. Several financial news outlets report that the U.S. and China are now “slipping in sync” with Europe.<\/p>\n

The Financial Forecast<\/em>, June 2012<\/p>\n<\/blockquote>\n

And recent news registered the economic slowdown.<\/p>\n