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  • 5 September 2011: Apple, Ford, and US Bonds: The September 2011 Historical Equity Crash and Countervailing 150 year US Bond Blow-off 0 comments
    Sep 5, 2011 7:09 PM
    Apple, Ford, and  US Bonds: The September 2011 Historical Equity Crash and Countervailing 150 year  US Bond Blow-off

    As of 5 September 2011

    Apple Ford: 10-11/26-27/20 day of 22 days /17-18 days   (18-19 more trading days)

    US Bond/Ten Year Notes  11/28/2 days of 22-27 days      (20 to 25 more trading days)

    Consistently for several years the patterned science of saturation macroeconomics has been predicting historically low US long term interest rates - even in the face of the S and P downgrading of US debt and in opposition to the pessimistic, US Fed bashing,  US long term bond and note managers who have mistakenly  lightened their US bond holdings.

    A final third fractal 52 month US 30 year bond  blow-off fractal is expected in September 2011 with historical 150 year low US interest rates mirroring a September 2011 historical collapse of equity prices.

    The operations of the macroeconomic system is an elegantly simple mathematical self assembly time ordered patterned science of growth and decay of the valuations of the system's assets.  The macroecomony's  patterned time ordered mathematical relationships of the growth and decay of its asset classes of which duality money  is one of the assets comfers on the system the properties of a science.

    The two most prominent self-assemby deterministic non stochastic patterns of the macroeconomy that are now operative and countervailing at this historical transition phase in September  2011 are terminal x/2.5x/2x growth of the global system's most valuable asset by plurality - US long term debt instruments - and extreme terminal time portion  second fractal 2x-2.5x noninear  collapse of US equities.

    The macroeconomic system is a integrative bounded system of asset production, asset supply, asset valuation, and the medium that both facilitates asset transactions and is part of the asset element of the system: money.  The macroeconomy's medium money has dual properties existing as an asset with incoming interest payments and as a liability as debt with outgoing interest payments.

    Qualitatively the world's macroeconomy is at the time of phase transition where money that exists in the form of lower quality debt with the properties  of  asset/liability duality ceases to exist as default of lower quality not-to-be-repaid debt occurs. The three year push on the string by ex nihilo bailouts by the global central banks to preserve ongoing payments of at risk debt, the bond holders holding that debt as an asset,  and the massive quantity of duality money that it represents - is at the end. The interest on Greek one year debt notes is currently over 70 percent. 

    The Predictive Science of Saturation Macroeconomics

    In concert with expected euro debt default and erasure of Euro duality asset/debt money, September 2011 is the 52nd month of a 27/64/52 month US 30 year Bond  x/2.5x/2x fractal series starting in 1990 and a second three phase growth fractal series to the three phase growth fractal series starting in 1984 with an incipient 2 year fractal starting in 1982.

    The world facilitated growth pattern in US debt instruments has been associated with about 1400 percent increase in US composite equity valuation since 1982. Equity valuation is dependent on the total duality money supply - with the portion involved in poorer quality asset-liability debt expected to vanish in September - timed with the September 2011 27/64/52 of 52 month growth fractal x/2.5x/2x and the 4 September 2011 11/28/2 of 22-27 day :: x/2.5x/2-2.5x daily terminal growth fractal.

    For equities September 2011 is in the terminal most portion of a composite equity 21 year second  fractal starting in 1990 with a 9 year base starting in 1982 or 34/84 of 85 quarters (3 month time unit).

    Tax rules favor ownership of the speculative equity asset class over savings.  Because of this, composite equity second fractal nonlinearity tends to be pushed  to the terminal most time portion of the second fractal.  The 84th quarter of a potential 85 quarters of a 1982 34/85 quarter first and second fractal series for the Wilshire represents the extreme terminal portion of the second fractal.
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