9 February 2012 Saturated: The Second Fractal Gap in the US Ten Year Bond
While the Wilshire traveled along a one percent wide 4-9 February euphoria saturation valuation asymptote, it was the larger US ten year debt market that marked the final Wilshire daily top on 9 February 2011.
9 February 2012 completed a 13/32 week first and second fractal series of the US Ten year Note with a final gap to a lower high interest marking the end of the US note's second fractal - before the blow-off weekly series to conclude a 27/65/57 month series.
Going forward for the next 10-12 weeks US long term interest rates will reach 150 year lows and the tradeable US long debt futures will see great third of third monthly and weekly nonlinear blow off appreciation.
A collapse of global equity valuations, global commodity valuations, oil, gold, and silver valuations will correlate to:
a macroeconomy saturated with real estate over valuation and over supply: personal residence the common citizen's large one unit denominator of labor and service related personal wealth
and a macroeconomic system saturated to an accumulative debt asymptote.
This system debt limit cannot be further remedied via the past mechanism of inflation of assets by demand related job growth and wage inflation in the current housing saturated environment and the political environment of austerity and retrenchment.
QE 3,4,,5 et. al, will be needed to provide a floor under the system to prevent social chaos.