The Macroeconomy's Rosetta Stone: Gold's Elegant Saturation Valuation Fractals and the Wilshire's Millennium Crash of 14/30/28/21-23 days
Gold represents a linkage Rosetta stone tool to the debt-asset valuations-jobs-wages-money system real and now hybrid macroeconomy. The growing portion of the hybrid economy is the new central chairman's central banks' scheme ex nihilo supported governmental and financial industrial economy. Gold's quantum saturation growth and decay valuation fractal patterns are elegant in their time ordered quantum growth and decay Lammert fractal patterns.
The procession of gold valuation fractals(denominated in, as an example, US dollars) exactly represents the old yellow relic's worth relative to currencies commodities, equities and rotationally to debt instruments.
Gold, from 1714 to 1918, denominated in the dominant British pound and from 1787 to 1918 denominated in the US dollar with a relatively constant value in the latter of 18-19 US dollars. With the formation of the US central bank and rapid money expansion via fractional reserve lending, gold's first fractal lasted about 15 years from 1917-18 to 1931-1932 with gold averaging 20-21 dollars.
Since 1932 gold has completed two large fractal series following the CRB's growth fractals of 8/20/10 years (38 years 2.5x second fractal) with an initiating fractal in the last 3 years 1968-1970 of the third 10 year period from 1960 to 1970 followed by a 7/17.5/9 year fractal ending in 2001. Notice the proportionality of these large yearly fractal series.
At the end of each period, the money supply enlarged through additional debt via fractional lending and reached an accumulation point allowing gold(and commodities) to proceed to the next quantum level of valuation. A 20.50 average dollar level existed from 1917-18 to 1931-32. With devolution of all assets in 1931-32, gold's low in 1931-32 dollars was below its 1790-1917 average valuation. A 35 dollar range (fixed by government but close to its fiat associated ideal value) existed from 1932 to 1970. An average 350 dollar range from 1970 to 2001.
Bad debt is currently being liquidated faster than the world's central banks can print money to maintain jobs and wages, the latter, the essential structural support element for continued debt repayment on overvalued assets. Hard asset prices are falling. The world and the US are at the end of a large macroeconomic debt credit cycle whose evolution is precisely characterized by the global debt dependent asset valuations' fractal growth and decay progression. Within this progression the nonlinearity which charaterizes Lammert second fractals will show that the macroeconomy is nonlinear, primarily a synergistic function of debt default, over supply, and job contraction. By use of gold's proportionality this great credit cycle will conclude in 12 or so years.
All of the Lammert growth and decay quantum fractal progressions of x/2.5x/2x/1.5-1,6x and y/2.5y/2.5y are easily observed in the monthly fractal sequences between 1992 to 2001, the last 9 years of the 7/17.5/9 year progression.
In 1993 after an initiating fractal of 3 months, a 7/17/14/10-11 month :: x/2.5x/2x/1.5-1.6x progression is observed. Within the terminal portion of its third fractal's 2x or 14 month saturation growth, an 8 month base decay fractal is observed with a 8/20/20 month decay fractal :: y/2.5y/2.5y progression taking gold to a US denominated dollar low in 1999.
At the terminal portion of the 7/17/14/10-11 month fractal a 3/7/7 decay fractal of 15 months forms the bases for a 15/38/38/15 month fractal: the last two fractals which form current 50 month 2001:2005 base.
Likewise within the terminal portion of the last 9 year fractal (7-8/18/9 year from 1970-2001), a 21 month initiating fractal formed the base for the 2-2.5x or 50 month first base fractal from 2001 to 2005.
Observe these very ordered quantum growth and decay fractals. What is the probability that the debt-asset valuation-wage macroeconomic system is a random process?
The current base fractal for gold is 5 years: 2001-2005 with a probable yearly sequence of 5/11-13/6-6.5 and ending in 2021-2022.
Since the conclusion its 2005 first 50 month base fractal, gold is following an 18/44 of 45 month first and second smaller scale fractal series. The 44 month second fractal is composed of a 5/11 and 7/14 of 15 fractal series.
The 7/14 month fractal series is composed of 26/58 of 62-65 weeks.
The first fractal of 7 months or 26 weeks series is composed of an ideal Lammert fractal series of x/2.5x/2x/1.5-1.6x :: 4/10/8/7 weeks.
The second fractal series is composed of 13/31/15 weeks.
A sharp devaluation of gold is expected within the next 4--7 weeks which will correspond to the expected equity and commodity crash.
Will Gold's expected final 2001-2022 5/11-13/6 year fractal end with an underlying curvilinear slope line connecting all valuations from 1917-1918 to 2021-2023 as bad debt is liquidated and hard asset prices are adjusted to ongoing wages and job opportunities? This would conform to a caricaturized x/2.5x/2.x/1.5-6x :: 15/38/30/22 year starting in 1918 and match a 70/164 year :: x/2-2.5x US equity fractal.
The evolution of gold's valuation fractals likely provides linkage and opportunity for understanding the macroeconomy's deterministic ongoing money supply, asset supply, hard asset (over)valuations, total debt, and ongoing wages - relative to the values of the world's individual currencies, equity composites, commodity composites, and debt instruments.
As the millennium nonlinear crash in US equities and commodities unfolds in an x/2x :: 46/95-7 month debt dependent extension of a 70/140 year :: x/2x fractal ending in 1998; with the second 95-97 month fractal composed of a 14/35/28/21-23 month :: x/2.5x/2x/1.5-1.6 month ideal Lammert sequence, the evolution of gold's valuation fractals likely provides the best linkage and opportunity for understanding the macroeconomy's deterministic ongoing money supply, asset supply, hard asset (over)valuations, total debt, and ongoing wages - relative to the values of the world's individual currencies, equity composites, commodity composites, and debt instruments.
For the 12 trillion dollar Wilshire, the final daily fractal series may be 14/30/28/2 of 14-21 days with its final saturation growth and devolution following thus far a perfect declining Lammert growth x/2-2.5x/2x of 14/30/28 days. The devolution period of ideally of 21 days falls within the nonlinear terminal areas of synchronized 152 year, 20 year, 96 month, and 49 week synchronized second fractals. The Wilshire's nonlinearity will demonstrate that the central bank's monetization leads to yet more malinvestment which, while profitable for the Financial Trust, severely punishes the savers who have been enticed into the market by those same Financial Trust.
What is the probability that these asset valuation saturation curves and quantum patterned asset valuation fractals are occurring by chance alone? Do they represent a new quantum understanding of a very mechanistic, very ordered, very predictable macroeconomic system?