Equities have been endowed by their financial house creators and promoters with great tax advantages by the legislatively bought and endorsed concept of after tax dollar investment – so that money made without societally useful work by the transgenerationally wealthy is taxed at a lower rate than services and products produced by the working citizen. As well, the wealthy and financial houses have immediate access to borrowing for speculation. In a progressive society, non work related gains would reasonably be taxed at least – at least – at a rate equivalent to the rate for gainful societally useful employment.
Equity valuations, now supported by the new US real bills doctrine, by the existing unfair tax advantaged laws for speculation will proceed to the end their maximal time quantum based fractal extensions of x/2.5x/2-2.5x :: 11-12/27-29/22-27 days and 22/55/50-55 or so days.
The US 156 year second fractal nonlinear end of composite equity valuations has always been expected to be exquisitely nonlinear.
!929 Fractal Decay Revisited: 1 November 2012 11/27-28/27-28 days …
!929 Fractal Decay Revisited: 1 November 2012 11/27-28/27-28 days …
Observe the Lammert Time Based Asset Valuation Quantum Self Assembly Fractals composing the Asset Valuation Saturation Curves . From 23 October to 1 November 2/4/4 days :: x/2x/2x From 1 Nov to 15 Nov (the decay base fractal ) 2/5/4/3 days :: x/2.5x/2x/1.5x And the first of two fractal series composing the Fibonacci reflexic maximum growth of 17 days in a deteriorating bad debt liquidating self assembly asset debt economic system: From 15 November 2012 to 28 November 2/4/4/3 days :: x/2x/2×1.5x and the second series from 28 November to 7 December 2/4/4 days :: x/2x/2x …. This is a deterministic quantum fractal self assembly asset debt macroeconomic system.
From the Main Page of TEF:
The ideal growth fractal time sequence is X, 2.5X, 2X and 1.5-1.6X. The first two cycles include a saturation transitional point and decay process in the terminal portion of the cycles. A sudden nonlinear drop in the last 0.5x time period of the 2.5X is the hallmark of a second cycle and characterizes this most recognizable cycle. After the nonlinear gap drop, the third cycle begins. This means that the second cycle can last anywhere in length from 2x to 2.5x. The third cycle 2X is primarily a growth cycle with a lower saturation point and decay process followed by a higher saturation point. The last 1.5-1.6X cycle is primarily a decay cycle interrupted with a mid area growth period. Near ideal fractal cycles can be seen in the trading valuations of many commodities and individual stocks. Most of the cycles are caricatures of the ideal and conform to Gompertz mathematical type saturation and decay curves.
Paradoxically, it is hegemonic debt which will always be repaid with the ability of the hegemonic state to print the world’s currency. The super wealthy who hold the bonds and long term notes prefer to maintain and increase the value of their bond holding by curtailing entitlement deficit spending. As military and DOD contractor deficit spending preserves the state of their hegemonic tax haven, the opposition to this major area of deficit spending is generally absent.
During nonlinear asset-debt system time dependent debt default on non sovereign debt, US sovereign debt holdings increase in value as their purchasing power increases relative to the general asset deflationary collapse associated with bad debt collapse and antecedent overproduction and overvaluation of assets.
For the stability of the sovereign, during debt default dependent asset valuation collapse, it is exactly the time to print money to directly trade for labor and associated useful social-political stability.
