GROWTH SATURATED: The Wilshire:19+/49/39 Weeks: X/2.5X/2X:: Gold's Incipient 2000-2001 Fractal Progression Points the Way.
Global Depression is Coming. Gold's XAU/HUI - November 2010: Completion of a 5/12/10 Month:: x/2.5x/2x Lammert Growth Fractal
Since Gold's secondary Feb 2001 low, gold has become a marker for global macroeconomic activity. Asian economic activity has exploded with nonlinear increasing demand for gold. This nonlinear increase in demand has caused a caricatured Lammert saturation fractal series with first and second fractal underlying slope lines that are parabolically and curvilinearly up. The first and second fractals measure 27 and 67 months respectively, where 67 months is near at exact expected 2.5x length multiple of the 27 month base fractal starting in Feb 2001. At the end of October 2010 Gold's third fractal is at its first saturation growth completion at 19/47/39 weeks :: x/2.5x/2x
The SPX is at a correlative saturation at 19+/49/39 weeks with the first 19 weeks' conclusion resulting in a 13 year valuation low.
Qualitatively the world is at a major terminal growth precipice for its greatest ever inexorable global deflationary collapse.
Parenthetically Goldman Sachs, having created nothing tangible of value, has built its massive cash war chest on the unfair first use of the US money and banking system, creation of bad rules and poorly enforced good rules by unpunished graft, corruption, fraud orchestrated by paid politicians, lobbiests, and effective control of the news media.
Goldman Sachs through the influence of its US Treasury employees has raped the US taxpayer becoming a first and primary beneficiary in the Goldman Sach's orchestrated bailout of 2008.
In November 2010 the world has too much overpriced inventory created by excessive money supply, excessively low interest rates, bad rules, and the Goldman Sachs' of the world who made their money up front with unregulated and fraudulent leverage schemes. Millions of citizens have been hurt and no one from Goldman Sachs has gone to jail. Millions of citizens in Asia and Australia where oversupply and overvalue have not yet undergone corrections are likely to suffer the greatest pain.
Never has more money been spent on a mid presidential cycle political campaign where both parties are owned by the Goldman Sachs.
After the coming asset and gold collapse, either ta this saturartion area X/2,5x/x or at a subsequent x/2.5x/2x saturation area, the Goldman Sachs' of the world will take their cash given to them by their hired politicians and made from nothing except bad rules created by the same corrupt politicians and buy hard assets for 15 - 30 cents on the 2006 value.
XAU/HUI Fractal Saturation Growth Pattern since 2000.
Both fractal growth patterns are the same: a 29-30/68-69/25 month pattern. The valuation base fractals for composite gold equities started their valuation rise a few month earlier than physical gold.
Second fractal nonlinearity is evident between 2x and 2.5x or between months 58 to 60 and months 72 to 75 occurring September-October 2008.
After the low on 24 October 2008, a 5 week initiating growth fractal precedes an idealized Lammert 3/7/6/4 week :: x/2-2.5x/2x/1.5x :: 4 phase growth and decay fractal series.
During this time period of XAU/HUI initial rising base valuation fractal, the Wilshire fell in a 7/16 week fractal series to its current lower 14 year low in March 2009. Of the 7 weeks in the 7/16 series 4 were split between the preceding decay of 35/87 weeks and the subsequent 16 week decay fractal averaging 19+ weeks(the first week was upgoing.
(Valuation fractals represent integrated activity where the initial growth begins in a preceding portion of decay.)
For gold composite stock indicies 3 weeks were spilt between the antecedent 19/47 week decay series and the subsequent growth fractal. The small 5 week interval fractal represents an initiating 5 week growth fractal occurring in October -November of 2008. 3 weeks is shared between the antecendent 19/47 week decay fractal and 3 weeks with is integrated with the 17 week ideal 3/7/6/4 week XAU/HUI valuation fractal for a total length of 19 weeks. XAU/HUI second fractal ends exactly 2.5x weeks later at 48 weeks. The third fractal is composed of an 8/18/15 of 15 to 16 week fractal which has a peak valuation on the 37th or near 2x week.
Gold's three phase growth fractal : 19/48/39 weeks.
The SPX: 19+/49/39 weeks : x/2.5x/2x. The first 19 weeks for Wilshire and SPX were downing going and correlated to gold's upgoing first fractal.
The ideal length of a 4th decay fractal for a base of 19 weeks would be 28.5 -30.5 weeks (1.6x.)
Gold composite stocks' longer composite fractal series since 2000 at the coming 19 week low would be 29-30/68/30-31 months with a possibility for another valuation rise to likely a lower high for an additional 28 - 30 months.