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The Economic Fractalist
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  • The Debt-Money-Asset System: Debt Limited Macroeconomic Saturation 0 comments
    Jul 11, 2010 8:10 AM

    Gold and Silver's 26-27/67-68 Defining First and Second Weekly Fractals

    The 26 week base fractal for gold has its  first week as a minimumly upgoing week. Likewise the initial series for AG is an 8/20 week or 27 week series. This extends the ideal window for a second fractal series to 66-67 weeks.

    The daily quantum fractal series for AU and AG for the third 23 week fractal of the second fractal series  of 8/20/13 and 9/23/23 weeks are 34/75 of 84-85 and 33/74 of 83 days respectively. This corresponds to 9/23/23 week CRB's third fractal composed of a 35/73 of 87 day fractal.

    For the inverse of US long term debt instruments TNX and TYX, the 25/62 of 63 month fractal which corresponds to the NIKKEI, cooper, and Ford monthly fractal series is likewise up-going which provides an ideal window extension of 25-26/62-65 months.

    The inverse weekly series for TYX/TNX is 12/30/24/17 of 18-19 weeks. This series too could be extended by a week because the first week of the 12 week first fractal is upgoing resulting in range bound 12-13/29-32/24-26/15-17 of 18-21 weekly fractal series.

    The daily fractal series composing the growth portion (lower interest rates) of the17 week fourth fractal (12/30/24/17) is composed of a 15-16/37-40/14-18 of 30 to 31 days. The terminal portions of the daily and  weekly fractal series are consistent with 25-26/62-65 month larger fractal series which will result in 150 year historically low long term US interest rates.

    Gold, which has done relatively well since 2002 in US dollars is following a valuation fractal pattern very similar to its previous 1970 cycle. The second fractal in this cycle peaked in 1980 about 42 months after the second fractal began in 1976.  Gold's valuation peak in US dollars in 2010 of less than a 50 percent increase of its 1980 valuation price of 870 US dollars is quite remarkable considering the 400 percent increase in US GDP and the explosion of Indo-Asian GDP's in the last 30 year with resultant significant US dollar holdings.

    Gold's 2001 current second fractal 1265 US dollar peak  corresponds to gold's 1970 second fractal peak occurring in  1979-1980 at 870-880 US dollar.

    The incipient synchronized second fractal nonlinear devaluation and collapse  of  equity and commodity valuations lies immediately ahead.   Historically low US interest rates will accompany this collapse.

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