The Economic Fr...'s  Instablog

The Economic Fractalist
Send Message
  • March-April 2012 Nonlinear Commodity And Equity Deflation: 0 comments
    Mar 25, 2012 11:05 AM

    March-April 2012 Nonlinear Deflation: (and the Rich US Bond Holders Become Richer)

    The CRB, composite equities, housing and countervailingly and oppositionally US sovereign debt instrument will undergo nonlinear transformations of their valuations over the next 5 weeks as the CRB and the Wilshire complete a 28/70/56/37 of 42 week ideal fractal series and TYX, TNX, and IRX complete a 12/29 of 30 months series in the same time frame.

    In this same time frame gold and the CRB are compleint a 7/16/13/9 of 10 month fractal series.

    Treasuries in April 2012 will be zero; the US ten year note less than one percent; and the US long bond below 1.8 percent.

    The nonlinearity of asset valuation is coming in the debt-money-asset system as the Wilshires March 2003 20/50/40 month growth fractal is completed at the end of a 1982 9/23 year :: x/2.5x Wilshire fractal.

    How low of valuations will equities, the CRB, gold, and non US debt instrument assets fall as the Wilshire begins it 30-32 month 4th fractal of a March 2003 20/50/40/30-32 month :: x/2.5x/2x/1.5x series mirroring the terminal time area of a 12/30/30 month decay fractal series for US treasuries, ten year notes, and 30 year bond?

    There is a highly intelligent bondspokesman who has a blind spot. In the media he has taken the position of as the Federal Reserve Chairman's QE nemesis. He doesn't seem to get the big picture.

    His beloved bond holders will be able to buy more assets with their high quality surviving bonds; that is, US debt instruments will greatly increase in purchasing power relative to the present valuations of equities, real estate and gold.

    US bonds would be like 1866 confederate bonds if a revolution were to occur and the citizens said go fish to the super elite bond holders. This might occur if sudden massive unemployment were caused by the lack of QE 3 and 4 or appropriate and necessary Keynesian we are all dead in the end spending.

    Rest assured this will not happen as the polarized parties will always ultimately agree in the nth hour to maintain their exuberant self-granted retirement benefits in a viable system. The drip drip drip water torture of meaningless bickering and meaningless drama about QE programs which ultimately preserve the union and the rules of the advantaged moneychangers will drone on and on.

    In the 1930's there was a small US governmental work sector, a relatively small defense and contractor sector, a small health care sector, and a small established entitlement group. In the debt and asset saturated agrarian economy of the early 30's, new work programs were needed and created to allow the QE 30's deficit spending to be channeled and employ the unemployed.

    In 2012 there is a large governmental work force, a large military and contractor force, a large health care industry, and a retiring bolus of beneficiaries who have paid taxes for 40-50 years which have been ear marked specifically for retirement and health care benefits.

    The governmental spigot of printing money to maintain the union and de facto protect the hallowed US debt instrument owners has ready recipients of money creation without the need to create new government programs.

    If a US Manhattan project were to be considered, two trillion dollars over five years to rapidly develop LENR would be a project that would provide a quadrillion return in usefulness. LENR will happen anyway. Why not use government funds in this recession(depression without governmental QE and deficit spending) to rapidly enhance this activity, promote American technology and manufacturing, and free the world powers of their oil interest in the middle east?

Back To The Economic Fractalist's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.