The media has been talking about deflation. The word is finding itself inserted into articles of many kinds. And with good reason: Deflation is a concern with any financial contraction, including the one we've been witnessing recently -- especially when there are record levels of debt in the system as there are now.

It's crucial to understand what deflation truly is and is not. In fact, most people think that deflation equals falling prices. Deflation INCLUDES falling prices. But that's not its most important feature. Its most important feature is that the supply of money and credit disappears. Because of that, most people are devastated, financially, when it occurs.

The good news is that you can prepare for deflation. If you do so, you can actually turn its most devastating impacts on their heads -- so they HELP you rather than HURT you.

To begin our report, let's return to our definition: Deflation is the contraction in the supply of money and credit. This occurs because businesses and people become less aggressive financially. Banks stop lending money and businesses and people stop borrowing. All parties cut their spending. They hold onto whatever cash they have. Perhaps you've already seen aspects of this in your current situation.

How can you protect yourself from deflation's effects, and turn those effects into positives? To answer those questions, let's begin with some key excerpts from the most popular book on the topic ever published, Robert Prechter's Conquer The Crash 2020: You Can Survive and Prosper in a Deflationary Depression. The book is considered THE seminal work on the topic and has sold hundreds of thousands of copies since its first edition was released in 2002. It is a New York Times and Wall Street Journal best-seller.

Here are your excerpts from Conquer the Crash............

Some panic selling would be nice this week at NSE, before some small recovery thereafter.

KCB at 35-38 am game on!!!!