Rising debt levels portend deflation.
The reason is easily explained: All historical deflationary episodes have been preceded by a major buildup of societal debt.
With that in mind, consider this chart and commentary from the January 2019 Elliott Wave Financial Forecast:
The amount of debt that now courses through world economies is almost unfathomable. According to The Wall Street Journal, total global debt hit a record high of $250 trillion in 2018. We cannot list all the record amounts here, but they exist in stock market margin debt as well as student loans, pension obligations, corporate debt and consumer debt.
And, speaking of student loans, read this excerpt from a Sept. 19 USA Today article:
About 2 in 3 members of the class of 2018 graduated a little deeper in debt than the classes before them. Last year's graduates with a bachelor's degree averaged about $29,200 in student loan debt -- a record in the USA.
That is about a 2% increase from the class of 2017, whose members graduated with an average debt of $28,650, according to a new report by the Institute for College Access and Success.
The growth of student loan debt has slowed, but the institute said college affordability remains an "urgent concern."
Read the free report, "What You Need to Know Now About Protecting Yourself from Deflation."