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.

Undeserved euphoria is present as it was in early October 2007.

For Japan’s Nikkei, September 2012 is the 114th month of a declining 1987 57/129/114 month ::x/2-2.5x/2x deteriorating growth fractal which has seen a greater than 95 percent inflation adjusted valuation collapse of the excessively GDP to debt ratio  debt-burdened Nikkei.

The Wilshire is at secondary high  valuation levels to its nominal 11 October 2007 high which was the 40th day of the third fractal a 20/50/40 reflexic Lammert self assembly growth fractal series.

The 2012 Wilshire’s current secondary high levels (to 2007) are still 945 billion below its 2007 valuation level and  its valuation level is now competing against a US ten year note that is offering  300 basis points less than  the October 2007 level. 

This is an incredibly weak equity market associated and  dependent on countervailing historically aberrantly low US sovereign interest rates.

What now?

What now is the final self assembly 2012 blow-off of the Wilshire following an elegant x/2.5x/2x quantum Lammert growth fractal series :: 7/17/14 days  – starting on 25 July and peaking on the 14th day of the third 14 day fractal of a 7/17/14 day fractal growth series  on 13 September 2012. 

13 September 2012 was the final equity peak valuation day picked earlier on the basis of the US long term debt fractal patterns.

The world is saturated with bad debt which will not be repaid.

The world is saturated with asset oversupply created by The Financial Industry’s 30 years of serial leveraged debt schemes.

The world is saturated with greatly overvalued assets relative to decreasing demand, decreasing real economy jobs to repay outstanding debt, and a historically massive bad debt burden – that is currently counted as an asset against overvalued collateral.

  The bad debt burden soon will undergo nonlinear default as teleologically the quantum fractal progression of the system’s asset valuation saturation curves of the patterned new science of Lammert asset debt saturation economics predicts.

For the Wilshire on 13 September 2012 …

expect minutely valuation gaps to a final secondary  high  valuation – secondary to the  Wilshire’s 11 October 2007 nominal high valuation – with a closing near the low of the day.

The Self Assembly Debt- Asset Macroeconomic System : At the 155 Year Lower High Wilshire Zenith: Decay Begins in Terminal Growth: the Competing and Complimenting 25 July 2012 7/17/14/11 Day Deteriorating Final Four Phase Lammert Growth and Decay Fractal Series and the Complimenting 17 August 2012 6/15/15 day Crash Three Phase Fractal Decay Series

One of the goals of this web site has been to predict the exact daily fractal sequence of the asset debt system’s first nonlinear transitional crash phase of the US Equity 1858 155 year Second Great Fractal.

Proving that the asset debt system is a patterned science may aid those – in a position to legislate necessary really effective  counter balancing and regulatory laws – to understand how much damage is done to the real economy by the facilitation of  bad debt creation. With a wherewithal of the simple quantum mathematical nature and deterministic mechanics of the asset debt macroeconomy It can be understood with certainty that the Financial Industry’s debt creation schemes in the 1920’s and the corporate raiders,  paid for accomplice tax laws, junk bonds, and financial intrinsically fraudulent  innovations of the the Financial Industry from 1980 to 2012 have directly caused the leveraged bad debt that currently exists at this macroeconomic debt-asset dysequilibrium saturation area.

Raw Accumulative Greed does not care about communities or people or real economic value or global economic and therefore global political stability. Greed only cares about raw gains most easily accomplished by facilitating schemes to create  bad debt and the creation of monetary system manipulated wealth – insider wealth undeserved and gamed – but nevertheless equivalent to that – created by real work and service of regular citizens.

From a nationalistic point of view, NAFTA and similar policies promoted by non proAmerican corporate and political elements have eviscerated the American middle class, which has been the cornerstone of the republic.

On a yearly, monthly, daily, 15 minute time fractal basis (e.g. the 10 June 2012 posting regarding the second to third fractal transitional period ), and minutely basis(the 21 August 2012 SPX’s secondary high to its 11 October 2007 nominal high), Lammert Quantitative Fractal Saturation Asset Debt Macroeconomics has proved the asset debt macroeconomic system to be a patterned science.

This is the Asset-Debt economic system’s simple self assembly fractal math:

The Lammert Ideal Four Phase Growth and Decay Fractal sequence: x/2-2.5x/2x/1.5-1.6x

The Lammert Ideal Fractal Decay Sequence : y/2-2.5y/2-2.5y

While 24 July was the absolute low for the Wilshire, the integrative average low was on 25 July 2012. A 7 day base fractal occurred from 25 July to 2 August. This can be observed for the CAC.
The final lower high for the Wilshire (and the system’s secondary high to 11 October 2007 for the SPX) occurred on 21 August 2012 or 2x the 14th day of the 7/14 day sequence.

As was the evolution for the SPX on 11 October 2007 5 years earlier, the SPX’s secondary high  on 21 August had a minutely gap near the opening of the trading day to its new secondary high and ended on the low of the day.

The expected 25 July 2012 deteriorating four phase Lammert growth and decay fractal is 7/17/14/10-11 days.

The asset-debt macroeconomy is an integrative mathematical system. Just as growth begins in terminal decay, initial valuation decay begins near the terminal valuation saturation growth area.

17 August 2012 occurred in the terminal portion of the 17 day second fractal of 25 July’s 7/17 day :: x/2.5x sequence.

A 6 day base is formed from 17 August to 24 August with an expected 6/15/15 day decay sequence. The system nonlinear crash will ideally occur within the last 15 day 3rd fractal sequence of the 6/15/15 day Lammert decay fractal series and on days 10 and 11 of the 4th fractal of the deteriorating 7/17/14/10-11 day sequence.