The Economic Fr...'s  Instablog

The Economic Fractalist
Send Message
  • The Week Of 23 April 2012 : The Millennium Equity And Commodity Crash: How The Global Macroeconomic Debt-Money-Asset System Works 1 comment
    Apr 21, 2012 4:05 PM

    The week of 23 April 2012 : The Millennium Equity and Commodity Crash

    How the global macroeconomic debt-money-asset system works.

    This week's crash devaluation is not grounded in animal spirits nor social psychology nor socionomics nor mass psychology.

    This is a predictable deterministic time based event and an element of an optimal mathematical self organizing process of the global debt-money-asset system and the rules that govern possession of the system's assets. Ultimately a macroeconomic system critical load of bad debt undergoes inevitable and predictable default as defined by the time based quantum mathematical patterned behavior.

    Saturation Macroeconomics is a mathematical science primarily defined by the system's critical mass of bad debt load. That bad debt load previously was used to produce an oversupply of overvalued assets. Asset valuation crashes occur and economic recessions occur qualitatively when too much has been borrowed, too much has been produced, and too much has been consumed. . The macroeconomic system is triply saturated with asset overvaluation, asset oversupply, and a system critical load of bad debt.

    The financial industry whose primary product is leveraged credit and bad debt creation accentuates asset overvaluation within the system's asset valuation quantum time based cycles

    The quantum process of patterned valuation growth and decay of composite equities and commodities and the system's hegemony countervailing larger asset class of debt reveal the status retrospectively, currently, and prospectively of the macroeconomic debt-money-asset system where money and more importantly and substantially debt represent very large elements of the system's total assets and summation wealth.

    When inevitable bad debt default occurs, the system's numerator of surviving assets have a lower denominator valuation of total wealth.

    In the United States over 50 of the 190 trillion dollar system's worth including land and real estate is represented by debt.

    The time dependent quantum patterned behavior of the relative valuations of the system's countervailing timed based asset valuation curves is THE RELEVANT DATA needed to compositely have a global understanding of what has happened, what is happening, and what will happen. The asset valuation curves time based patterned behavior dwarfs the relevance of any GDP growth curve, unemployment curve, asset sales curves, wage growth curve, or accumulative US governmental debt curve.

    None of these latter curves and the many other busy curves and data produced by classically trained economists are predictive of future economic activity, and ALL are dependent on the patterned behavior of the system's deterministic interlocking oppositional countervailing asset valuation curves.

    The nonlinear quantum patterned behavior of the macroeconomic system's countervailing asset valuation curves elevates the entity of Saturation Macroeconomics to a science equivalent to physics and chemistry.

    Understanding this paradigm shift concept and using the patterned science allows much easier decision making and clarity regarding global economic and fiscal policy.

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 (1)
Track new comments
  • ex umbra
    , contributor
    Comments (19) | Send Message
    back to the drawing board . . . or, is Apr 25th the last hurrah before the downside action begins in earnest.
    25 Apr 2012, 04:03 PM Reply Like
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.