The Economic Fr...'s  Instablog

The Economic Fractalist
Send Message
  • The Nikkei October 2008 Gap Filled: The Great Global Synchonized Second Fractal Nonlinear Equity and Commodity Devaluation 0 comments
    Mar 31, 2010 1:17 AM
    The Nikkei October 2008 Gap Filled: The Great Global Synchonized Second Fractal Nonlinear Equity and Commodity Devaluation


    In the euphoria that envelopes April first, expect the unexpected
    .

    April Fools Day: The Nikkei: 16/34/35 days and for the Wilshire 19/47/38 days.

    Currently present is a turn the corner euphoric state in the political, financial, and news industries which is disconnected from the real economy and the odd recent equilibrium economy of trading paper for inexpensively lower labor cost produced Asian goods. While the Nikkei has filled it October 2008 nonlinear gap devaluation, the gap itself a second fractal 6/15 month devolution, the US transportation composite reflecting the trading dynamics of that transpacific transcontinental  Western-Eastern paper for real goods economy has not filled its October 2008 nonlinear devaluation gap.

    April fool's day is very close to the final secondary major saturation valuation area of the nominally high 11 October 2007 Wilshire and reflects the 20th month of a 14/35/28/20 of 21 ideal Lammert fractal  series. It is also the 94th month of a second fractal of a 46/94 month fractal series and the 152 year of a 70/152 year fractal series . It is within the 58 week of a 23-25/58 fractal series and the 39 week of a 19/39 week fractal series. (thee us CRB shares this 19/39 week sequence.) It is the 79th week of a 34/84/79 week fractal decay series. The synchronization of terminal areas of second fractals within both the 150 US grand second fractal and the 14/35/28/20 of 21 month ideal series and the 34/64/79 week decay series suggests an unexpected nonlinear event of historical stature.

    The Nikkei too is in a second fractal series of 26/60 months within a larger decay series of 56//129//26/60 of ?61/?61 or 56/129/126 month decay fractal which represents a painful 25 year deflationary period from the 1989-1990 40000 Nikkei and the surreal housing bubble. The Japanese central bank and politicians provided the template for western world's bailing out of the banks by letting the owners of the overvalued real estate slowly pay off their debt at record low interest rates  with sustenance of the consumer-debt contracted economy through increased governmental debt. The US politician-financial industry bested the deal that was given the Japanese banks-financial industry  by both taking  bad assets/derivative products directly off the US banks' accounts and paying the financial industries near worthless derivative products in full. The criminals own the system.

    AG and AU are following a 25-26/51 week pattern which is in the terminal area of a 18/43 month larger first and second fractal series. The 25-26 week first fractal is composed of a 4/9/8/7 week interpolated fractal.

    All are aware of the impossibility of a linear intermediate term continuation of the present US economic, political, and entitlement system. The need, the numbers, and new debt capacity for forward economic growth in a forward consumption debt based economy just are not there to sustain the present system.

    What happens after the devolution is an attempted continuation of the present with further massive deficit spending, further collaborative global central banks' monetization of debt with the central banks owning as much debt as the countries which have produced real goods to secure their debt.  The debt expansion  process as a  percentage of outstanding total debt  will occur in monthly debt auction increments and appear to occur at a relatively slow pace. In this environment the financial institutions will thrive as the real citizen economy is forced to liquidate debt, reduce overvaluation of owned hard assets, and reduce oversupply of existing hard assets
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.