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Mr. Prechter is convinced that we have entered a market decline of staggering proportions — perhaps the biggest of the last 300 years.

In a series of phone conversations and e-mail exchanges last week, he said that no other forecaster was likely to accept his reasoning, which is based on his version of the Elliott Wave theory — a technical approach to market analysis that he embraces with evangelical fervor.

Originating in the writings of Ralph Nelson Elliott, an obscure accountant who found repetitive patterns, or “fractals,” in the stock market of the 1930s and ’40s, the theory suggests that an epic downswing is under way, Mr. Prechter said. But he argued that even skeptical investors should take his advice seriously.

“I’m saying: ‘Winter is coming. Buy a coat,’ ” he said. “Other people are advising people to stay naked. If I’m wrong, you’re not hurt. If they’re wrong, you’re dead. It’s pretty benign advice to opt for safety for a while.”

His advice: individual investors should move completely out of the market and hold cash and cash equivalents, like Treasury bills, for years to come. (For traders with a fair amount of skill and willingness to embrace risk, he suggests other alternatives, like shorting the market or making bets on volatility.) But ultimately, “the decline will lead to one of the best investment opportunities ever,” he said.

Buy-and-hold stock investors will be devastated in a crash much worse than the declines of 2008 and early 2009 or the worst years of the Great Depression or the Panic of 1873, he predicted.

For a rough parallel, he said, go all the way back to England and the collapse of the South Sea Bubble in 1720, a crash that deterred people “from buying stocks for 100 years,” he said. This time, he said, “If I’m right, it will be such a shock that people will be telling their grandkids many years from now, ‘Don’t touch stocks.’ ”

It’s a move that outraged observers have decried as an attack on First Amendment rights. And CNN’s Anderson Cooper describes the new rules as making it “very easy to hide incompetence or failure.”

The Coast Guard order states that “vessels must not come within 20 meters [65 feet] of booming operations, boom, or oil spill response operations under penalty of law.”

But since “oil spill response operations” apparently covers much of the clean-up effort on the beaches, CNN’s Anderson Cooper describes the rule as banning reporters from “anywhere we need to be.”

The yield attached to some forms of infrastructure municipal bonds has risen relative to US Treasury bonds because of fears that cash-strapped local governments will struggle to repay these loans.

Absolute borrowing costs for regional governments remain relatively low in historical terms because of the Federal Reserve’s ultra-loose monetary policy. But any swings in municipal yields will be watched closely by investors, since they suggest that the fiscal anxieties about the eurozone could now infect the US.

“The risk in the second half of the year is that investor attention switches from Europe to the US,” said Robert Parker, senior adviser at Credit Suisse Securities, who singled out parts of California, as well as towns and cities in Illinois, Michigan and New York state as among the most vulnerable.

“You will see investor concern about the viability of those cities and therefore you will see, inevitably, further spread widening in the municipal bond market.”

“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said.

The Dow retreated 457.33 points, or 4.5 percent last week, to close at 9,686 Friday. Guppy said a Dow fall below 9,800 confirmed the head and shoulders pattern.

The Shanghai Composite is seeing a very rapid collapse, falling below 2,500, which suggests the major fall in the Dow, he added.

In the European markets, Guppy says Frankfurt’s Dax is witnessing a different pattern to London’s FTSE.

“The economy is still in the gravitational pull of the Great Recession,” said Robert Reich, former US labour secretary. “All the booster rockets for getting us beyond it are failing.”

“Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing,” he said.

California is tightening faster than Greece. State workers have seen a 14pc fall in earnings this year due to forced furloughs. Governor Arnold Schwarzenegger is cutting pay for 200,000 state workers to the minimum wage of $7.25 an hour to cover his $19bn (£15bn) deficit.

Can Illinois be far behind? The state has a deficit of $12bn and is $5bn in arrears to schools, nursing homes, child care centres, and prisons. “It is getting worse every single day,” said state comptroller Daniel Hynes. “We are not paying bills for absolutely essential services. That is obscene.”

Roughly a million Americans have dropped out of the jobs market altogether over the past two months. That is the only reason why the headline unemployment rate is not exploding to a post-war high.

Let us be honest. The US is still trapped in depression a full 18 months into zero interest rates, quantitative easing (QE), and fiscal stimulus that has pushed the budget deficit above 10pc of GDP.

The share of the US working-age population with jobs in June actually fell from 58.7pc to 58.5pc. This is the real stress indicator. The ratio was 63pc three years ago. Eight million jobs have been lost.

The average time needed to find a job has risen to a record 35.2 weeks. Nothing like this has been seen before in the post-war era. Jeff Weninger, of Harris Private Bank, said this compares with a peak of 21.2 weeks in the Volcker recession of the early 1980s.

“Legions of individuals have been left with stale skills, and little prospect of finding meaningful work, and benefits that are being exhausted. By our math the crop of people who are unemployed but not receiving a check amounts to 9.2m.”

Evolution has produced a range of humans capable of being alert to danger at every hour of the day. Our experience confirms these findings. We all know people who love to be at work bright and early, with a cup of coffee to hand and decisions to make, and others who would rather stumble through the day until reaching a state of relaxed clarity around dusk, when their minds are purring.

The problem is that those with the genetic gift of “morning-ness” tend to be more highly rewarded. Morning-ness is perceived as a sign of activity and zest, whereas evening-ness implies laziness and loafing. How often did we have to see David Cameron on one of his early-morning runs to get the idea that here was a leader of potency and vigour? How different would it have been if he slunk out of bed to work, then exercised at around 8pm? Could a Prime Minister be elected today who worked like Churchill, reading, writing and thinking in bed before getting out of it at noon?

History is full of great bores praising the virtues of early rising, but few have made the case for letting the day drift by until you kick into gear around happy hour.

Citing data from the Defense Logistics Agency, the newspaper said BP had contracts with the US Defense Department worth at least 980 million dollars in the current fiscal year.

In fiscal 2009, BP was the Pentagon’s largest single supplier of fuel, providing 11.7 percent of the total purchased, and in 2010, its contracts amount to roughly the same percentage, the report said.

Its designers claim the system can anticipate anti-social behaviour and violence by analysing the information picked up its sensors.

They say alerts are then sent to police, nightclub bouncers or shop security staff, which allow them to nip trouble in the bud before arguments spiral into violence.

The devices are designed to distinguish between distress calls, threatening behaviour and general shouting.

The system, produced by Sound Intelligence, is being used in Dutch prisons, city centres and Amsterdam’s Central Rail Station.

Coventry City Council is funding a pilot project which has for six months and has installed seven devices in the nightlife area on the High Street.

Dylan Sharpe, from Big Brother Watch, said: “There can be no justification for giving councils or the police the capability to listen in on private conversations.

“There is enormous potential for abuse, or a misheard word, causing unnecessary harm with this sort of intrusive and overbearing surveillance.”

A CV1 spokesman said: “We had the system for six months. It is no longer in use.”

No one from the organisation was available to comment on whether the trial was a success.

The email was sent to all TSA employees from the Office of Information Technology on Friday afternoon.

It states that as of July 1, TSA employees will no longer be allowed to access five categories of websites that have been deemed “inappropriate for government access.”

The categories include:

Chat/Messaging

Controversial opinion

Criminal activity

Extreme violence (including cartoon violence) and gruesome content

Gaming

The email does not specify how the TSA will determine if a website expresses a “controversial opinion.”

There is also no explanation as to why controversial opinions are being blocked, although the email stated that some of the restricted websites violate the Employee Responsibilities and Conduct policy.

“A nuclear explosion over the leak,” he says nonchalantly puffing a cigarette as he sits in a conference room at the Institute of Strategic Stability, where he is a director. “I don’t know what BP is waiting for, they are wasting their time. Only about 10 kilotons of nuclear explosion capacity and the problem is solved.”

A nuclear fix to the leaking well has been touted online and in the occasional newspaper op-ed for weeks now. Washington has repeatedly dismissed the idea and BP execs say they are not considering an explosion — nuclear or otherwise. But as a series of efforts to plug the 60,000 barrels of oil a day gushing from the sea floor have failed, talk of an extreme solution refuses to die.

For some, blasting the problem seems the most logical answer in the world. Mikhailov has had a distinguished career in the nuclear field, helping to close a Soviet Union program that used nuclear explosions to seal gas leaks. Ordinarily he’s an opponent of nuclear blasts, but he says an underwater explosion in the Gulf of Mexico would not be harmful and could cost no more than $10 million. That compares with the $2.35 billion BP has paid out in cleanup and compensation costs so far. “This option is worth the money,” he says.

And it’s not just Soviet boffins. Milo Nordyke, one of the masterminds behind U.S. research into peaceful nuclear energy in the 1960s and ’70s says a nuclear explosion is a logical last-resort solution for BP and the government. Matthew Simmons, a former energy adviser to U.S. President George W. Bush and the founder of energy investment-banking firm Simmons & Company International, is another calling for the nuclear option.

Even former U.S. President Bill Clinton has voiced support for the idea of an explosion to stem the flow of oil, albeit one using conventional materials rather than nukes. “Unless we send the Navy down deep to blow up the well and cover the leak with piles and piles and piles of rock and debris, which may become necessary … unless we are going to do that, we are dependent on the technical expertise of these people from BP,” Clinton told the Fortune/Time/CNN Global Forum in South Africa on June 29.