When the credit bubble pops. His theory is the "all one market theory" - i.e. that everything rises/ has been rising on the bubble of increasing fiat credit. Eventually, the entire bubble pops, and everything comes down in price. Comes down in price because the inflation reverses. The upward spiral of creation becomes a downward spiral of destruction. The destruction is of the FRNs.
As FRNs become more scarce, the remaining ones become more valuable. As they become more valuable, they can buy more. Which is another way of saying that prices fall.
We all know that FRNs can be created from thin air. What Prechter says is that they can - and will - also disappear back into thin air.
What is wrong with that analysis? How much "wealth" got destroyed in the last crash? Something like $8 trillion, if I recall. Gold and gold stocks took a dump back then too (2007 - 2009) if I recall.
Anyway - what do the COTs say now?
It is no measure of health to be well adjusted to a profoundly sick society. - Krishnamurti.