The Historical Gold Crash (After 13 September 2012) The New Quantum Science of Lammert Asset-Debt Saturation Economics

What the quantitative asset valuation fractal time patterns indicate is that the debt-asset economic system has natural saturation limits of bad debt accumulation and asset saturation oversupply created by bad debt previous forward consumption that weakens demand in the debt-asset system’s labor-wage foundation limiting the ability for further forward consumption and repayment of existing debt. That debt will then undergo default.

It is the remarkable periodicity of the two dominant countervailing asset class saturation valuation curves with quality sovereign debt on the one hand and real estate, equities and commodities on the other that impart to the system the qualities of a patterned science.

What makes saturation economics a self assembly self organizing time dependent asset-debt science is precisely the growing existence of accumulative bad debt for labor and wage based prior forward consumption.  This bad debt  reaches a natural and deterministic saturation point and thereafter undergoes inevitable time specific default with an initial nonlinear mass quantity of bad debt default.

This asset-debt forward consumption macroeconomic system will always undergo periodic bad debt default.

However it is man’s need to accumulate greater and greater wealth that leads to the large scale bad debt collapses that will soon be forthcoming.

For the financial and banking industry, their business is precisely to facilitate the creation of debt. Their business is exactly to place others in debt. Elements within the industry compete with each other to gain market share. The considered best in the business by the peers place the most people in debt and  find the cleverest, unethical, most fraudulent new ways to facilitate debt creation.

Debt and money derivatives are competitively exponentialized by the competing elements of the financial industry; company leadership is specifically rewarded for market share and short term profit.

The asset debt macroeconomic system is self balancing.  Because of man’s nature, debt elaboration and consumption will always create an amount of bad debt that during liquidation periods will lower the denominator of money equivalents against existing hard or equity paper assets.

When hard or equity assets become denominated in a smaller total money-debt aggregates, nonlinear devaluation of those assets will occur reaching a Gompertz-type of devaluation saturation curve at the time where a large portion of the bad debt has been liquidated and new credit creation for forward consumption begins.

At this point in history of generational saturation macreconomics where 40 years of bad debt accumulation is so massive, where so much has been over produced and forwardly consumed, where so much residual supply exists and the pricing of assets are so divorced from the total wages of the real economy, where middle class jobs supporting the debt load have been globalized, where so much of the middle class owe more the value of primary residence, Sovereigns must use and directly trade  their currency for ongoing societally useful goods and services.

This is time historically when mass  employment comes in the form of military mobilization as the sovereign’s wealthy direct attention away from their advantaged positions and toward the evils of other sovereigns.

 

Leave a Reply