Wow! Armstrong confirms the low in gold will likely be in the $600 - $700 range! Yikes   Armstrong wrote recently how that near the low, even the former bulls are borrowing gold to sell it short, which is what drives the extreme low.

Ditto BTC, they will sell that fucker short down to double-digits. You've been warned. Once the momentum gets rolling to the short direction, you will see the same overshoot to the downside that we saw on the overshoot to the upside to $1000+ for Bitcoin. It wasn't easy to borrow short on the way up to $1000+ which may have contributed to why the price was able to overshoot so much. Now it is very easy to margin sell short with one-click on bitfinex and if you don't exchange fiat in or out of bitfinex then apparently you don't even need to give them an id (no KYC in that case apparently). I can't offer any assurances on the stability of bitfinex policies nor on whether they can remain solvent in a market that moves too fast.

Want some free money? Short gold and BTC with a several month timeline.

Looks like week of Aug 10 will ensue the big sell off in gold (and probably also Bitcoin):



By deflation he means that deflation is not confined to a decline in prices (which itself isn't even confined to only be caused by contraction of M or V in the Quantity Theory of Money), but also can be due to a contraction in economic activity caused by debt overload and its ramifications such as government raises taxes to gain revenue to service the egregious debt load.

Stagflation (de-inflation) can occur when the economic activity is contracting and the production of certain goods is contracting faster. This can happen for example because China was doing all the world's manufacturing and was operating on negative profits due to carry trade in debt, so when the tide goes out we see that cost of manufactured goods was the most naked.