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  • The Macroeconomic Quantum Universe and McDonald's Valuation Fractals 1 comment
    Dec 12, 2009 10:12 PM
     The Macroeconomic Quantum Universe and McDonald's Valuation Fractals

    The science of saturation macroeconomics predicted the US 140 year second fractal nonlinear macroeconomic event. As a quantum patterned science, with asset valuation growth and decay activity dependent on total debt load,  relative asset supply,  and asset relative valuation, it prospectively predicted the exact nominal high of the composite Wiishire prospectively on 11 October 2007.  

    The universe's energy, which, with its Emptiness, is the universe,   operates in a nonlinear fashion: the fission and fusion of atomic explosions, the fractal energy rearrangements causing the weak, strong, and electromagnetic forces of universes, star explosions, the activation energy of chemical reactions, forest fires, and death for living organisms - all represent abrupt changes of otherwise seemingly linear processes that advance on a time line in the human's life span and experience with apparent great continuity.

    For the relatively small microcosm that is the macroeconomy's universe, there are a combination of the above cited interrelated parameters that produce nonlinear and abrupt changes in economic activity.  Small absolute changes in percentages of citizen debt compared to the total wealth value of the asset system, relatively small percentage of oversupply compared to the total private ownership, overvaluation that may seem appropriate for given economic activity, resulting unemployment and the inability to service previously obligated debt - all of these small deviations contribute to nonlineariity at quantum time based macroeconomic saturation areas.

    The GRB footprints of a collapsing star is rare galaxy event but with the available observational wide angle time lens window of much of the universe, these nonlinear events are easily observed. Likewise the nonlinear events of second fractals are easily observed over the life time of commodity, composite equity, and individual commodity and individual stock asset valuation curves.

    The long term US debt instruments are investments (speculations) antipodal to equity and commodity speculations. The ideal weekly fractal projection for long term debt instruments are 12/29/11 of 26-29 week with an all time low in yield expected in 15 -19 weeks.  Opposite to this quantum fractal low interest rate is a 22-23/41 of 55-58 week composite Wilshire equity fractal and a 11/28/22/2 of 16-18 composite commodity fractal.

    The long term 20th and 21st century Wilshire is a money system progeny of a primitive 18th century product-derivative stock market, and a canal, mining, and railroad derivative19th century market. From 1982 to 1990 a 9 year first fractal has formed the base for a 4/8/8 year second fractal.  The 8 year third fractal of the 4/8/8 year sequence is composed of two monthly subfractals: 8/18/23 and sequentially 9/20/15 of 18 months. The weekly decay pattern of the y/2-2.5y/2-2.5y :: 9/20/15 of 18 month decay pattern is 34//84//22-23/55-58 weeks or 34/84/76-80 weeks

    The quantum fractals that compose  valuation time pathway of the US CRB, are dollar denominated and corrections must accommodate time frames of severe 1st derivative devaluation of the US dollar against other world competing currencies. For the CRB the US dollar valuation corrected  CRB monthly quantum fractal is
    27///7/17/14/11/3/8/6 of 6-7/1 of 4 months or 27/56 of 58-59 months.

    What information does the quantum fractal valuation of America's replacement industry for GM hold for the observer? A monthly valuation review of the last 8 years of McDonald's corresponding to the Wilshire's third 8 year fractal pattern of 4/8/8 years with the first fractal base from 1982-90 of 9 years is revealing.

    Since its low in 2003 MCD is composed of a two subfractal series of 10/20/12 and 10/20/15 of 18 months. The second fractal series of 10/20/15 months is composed of 34//24/61/22-23//8-9/21/13 of 16-17/12 week fractal or a 34/84/61 of 80-81 week y/2/5y/2.5y decay fractal matching the weekly Wilshire decay pattern cited above.

    For the daily decay fractal sequence of McDonalds; gapped lower lows are expected on 13 and14 December followed by 11 days to a final high or secondary high at about  65-69 dollars per Big Mac speculative stock unit. An inverse growth of decay fractal of 13/32/26 days would take McDonald's down and nonlinearly down to a low and likely below its 2003 low of 13 dollars and match the 34/84/80-81 week decay fractal of the Wilshire.
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  • The Economic Fractalist
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    Author’s reply » 17 January 2010
    McDonald's: America's Premiere Domestic Industry; Revisited


    The next 6-12 weeks contains and represents the debt-defaulting nonlinear collapse period for America's 152 year second equity valuation fractal.


    From the above December 2009 posting. ....


    " Since its low in 2003 MCD is composed of a two subfractal series of 10/20/12 and 10/20/15 of 18 months. The second fractal series of 10/20/15 months is composed of 34//24/61/22-23//8-9/2... of 16-17/12 week fractal or a 34/84/61 of 80-81 week y/2/5y/2.5y decay fractal matching the weekly Wilshire decay pattern cited above."


    Currently McDonald's weekly Lammert Fractal Growth x/2.5x/2x cycle is:


    8-9/21/18 weeks :: x/2.5x/2x


    This series constitutes a second fractal of a 23 week base.


    There is a possibility of third fractal growth extension of this second fractal series to 8-9/21/18-21 weeks :: x/2.5x/2-2.5x.


    McDonald's 10/2012 monthly fractal starting in 2003 is followed by a 10//20//6/11 of 13-15 month or 10/20/18- 20 month (decay) fractal where first two subfractals of 10 and 20 months represented growth of the money supply with the second 20 month subfractal containing the Wilshire's nominal 11 October 2007 high and representing the peak of the 'investable' American money supply.


    The third decay subfractal of 18-20 months of the 10/20/18-20 month y/2y/2y (decay)fractal series is composed of a 23/45 of 46-47 week x/2x lateral growth first and second fractal series.


    The ideal expected end of this first and second interpolated fractal series is 23/56-58 weeks or x/2.5x and represents a low in about April 2010 concluding a 10/20/19-20 month decay fractal y/2y/2y or 34/84/78-80 weeks.


    The last 18 week third fractal of the 8-9/21/18 of 18-21 weekly fractal series is composed of a daily 20/42/23 of 23-40 days.
    The 42 day second fractal follows the 2-2.5x second fractal pattern proportionality of the 20 day first base. The nonlinear gapped drop between the 41st and 42nd day characterizes second fractals as defined in the main page of 'The Economic Fractalist.'


    So much of America's growth and entitlement promises over the last 30 years has been based on a disproportional growth of total debt without producing real basic economic elements e.g. factories and sell-able items to sustain economic growth and repay debt.


    The growth of America's GDP is a measure of its disproportional debt burden rather than the creation of a real economic engine to employ citizens and sell products to the world.


    The financial industry has been the recipient benefited party of this disproportional debt growth at the expense of building a real economic base. The bankruptcy prevention of the financial industry by the central bank and by America's current politicians in office represents total capitulation to a debt driven debt based economic system.
    17 Jan 2010, 08:14 AM Reply Like
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