As GOOGLE Goes, So Goes the Global Macroeconomic System and So Goes Lammert Macroeconomic Asset Valuation Fractals
31 January 2011A major turn is coming in multiple asset classes' valuation growth and decay including the US dollar vice the basket average of other fiats.
To linear economists and those with linear continuance of previous expectations, the turn may be as unexpected as the 2008 decay in commodities and equities valuations and corresponding growth in held debt instrument valuations. Add to this, an unexpected turn growth in the dollar index against other the valuation of other basket currencies for 6 to 7 years.
Google points the way. Google has followed an ideal Lammert growth and decay pattern since its inception.
Its first major fractal of 52 months is composed of a x/2-2.5x/2x/1.5-1.6 subfractal series
first growth sub fractal = 8 months = x
second growth sub fractal = 18 months = 2-2.5x
third growth sub fractal to peak = 16 months = 2x
fourth decay sub fractal = 13 months = 1.5-1.6x
As of January 2011 GOOGLE'S second fractal series is composed of an incipient 5/12/12 subfractal series series.
GOOGLE temporally aligns with the SPX as follows:
GOOGLE 2/5/12/12 where the 2 months initiating fractal are the last 2 months of the 13 month 4th subfractal
For both GOOGLE and the SPX, a major low will occur in about 5 months.
The SPX is completing a 1982 100//50.5/100/100 month x/2.5x or 1982 100/250 month 1st and 2nd fractal seryes ending in the same time period May-June 2011.
US TEN year notes and 30 year bonds will reach and likely exceed their 150 year low interest rates during the same time period following a 15/39/4-5 current weekly pattern and likely reaching a high (low interest rate) in the same May-August 2011 time period.
As of 31 January 2011, the CRB is following a 19/48/36 of 38 week pattern, closely matching the SPX weekly fractal growth pattern of 19/47/37 weeks.
Most asset valuation decay patterns are following a y/2-2.5y/2-2.5y patterns. The nodal lows of the SPX may provide the integrative mathematical clue for the major May-June 2011.
By nodal lows the SPX is 19/52/31 of 47-52 with a major low in 16 to 21 weeks. If weeks 47 to 52 of the second fractal are integratively shared, the low would be in 16 weeks consistent with a late May to early June 2011 time frame.
y/2-2.5y/2-2.5y decay patterns:
From the SPX's October 98 4/10/10 month high a 5/11/11 month decay fractal is observable.
Starting at the low of that 5/11/11 month decay fractal in 2002, a 14/35/34 month decay fractal ending in March 2009 is observed
The final decay fractal beginning in March 2009 and ending the 100/250 month first and second fractal sequence beginning in 1982 is a 5/13/7 of likely 12 month decay fractal ending in June 2011.
The ultimate low of the SPX from 1932 may be an an averaged 15/37/36-38 year decay fractal with nodal points in 1982 and finally in 2018 plus or minus a year ending a 70/160 US equity first and second fractal sequence and a 92-93/230 year British starting in 1695.
Gold has become a money equivalent. like Silver it is following a 39/82 of 98 week ideal fractal series matching the CRB's expected low in 16 weeks.
Gold's long term valuation fractals are the most interesting and telling of all macroeconomic asset valuation markers. While oil as a finite and diminishingly produced commodity coupled with a growing global demand and initially more expensive electrical devices will perform among the best of all commodities in the next two decades, gold completed a 7/17/10 year fractal beginning in 1970 and ending in 2001 with an a first fractal base of 5 years or 51 months. While the valuation drop in gold to the low 700's in US dollars in April-June will be substantial; it will outperform other assets for the remainder of most of its 127 month second fractal as the US central bank is forced to continue the ex nihilo creation of dollars to maintain stability of the US social political economic system.
Ultimately US dollars are back by the defacto global desired relative stability afforded by the US military. Money creation from nothing by the central bank to maintain the system, while an unfair advantage to other nation states, produces an uneasy unbalanced stability that from a global continuation perspective has merit.
Using the laws of fractal progression, GOOGLE can be used an upscale high end asset to predict the progression of US asset valuations and their nodal lows for the next twenty years. The downscale low end is represented by the large bank corporations who are insolvent but will be maintained because of their transactional role within the financial system.
As Google Goes, so goes validation of the quantitative self organizing fractal nature Lammert Nonstochastic Saturation Macroeconomics.