Does public debt matter in the new global paradigm?
For G20 countries and for the next 50 largest economies … not much at all….
A new asset debt macroeconomic paradigm began in October of 2008 with the initiation of the necessary global remedy for the implosion of the greatest asset bubble … with the greatest working class participation of all times … involving the most expensive and most desired commodity of the global working class – residential property. The expanded business activity related to rapid valuations of existing earlier purchased residential units expanded global consumption and caused the highest spike to date in the nearby composite CRB valuation.
The global asset-debt macroeconomic system with the assistance of the interlinked global banking system is not only in a very long recovery period, it has now a new collaborative blue print for the future which will ensure that the working class of all nations who sustain the macroeconomic system at the foundational level can expect that governmental promises for retirement and health benefits will be sustained. This provides great forward stability.
The 150 year US Equities second fractal starting in 1858 was composed of two subfractal series; one ending in 1929-32 and another in 2007-2009, both with identifiable y/2.5y/2.5y daily decay patterns of 11/26-28/26-28 days during the months of decay.
The asset-debt global macroeconomic system is a cyclical self assembly entity with necessary fractal growth and necessary fractal decay of countervailing debt asset valuations and system asset valuations. The mathematical simple recurrent quantitative, minutely, hourly, daily, weekly, monthly, quarterly, yearly Lammert Fractal Patterns of Growth and Decay – correlating to the self assembly deterministic process – represent the integrative Science of the Asset Debt Macroeconomic System.
Recovery and re balancing in the 1930’s was associated with massive unemployment, governmental relief programs, massive governmental construction projects, asset depreciation and foreclosure, lowered interest rates, and new economic related to global war.
Recovery and re balancing in the 2009 was related to massive global debt expansion with bad debt underwriting to support large banks involving the international collaboration between central banks and federal governments, asset depreciation and foreclosure, significant increase in unemployment, unemployment relief, support of large businesses and citizen debt relief via historically lowered interest rates.
While still in the period of re balancing, the recovery of 2009 is squarely under the umbrella of the new macroeconomic asset debt system paradigm; the international collaborative of central banks and federal governments. While death and carnage are operative at the small scale, the new paradigm majorly reduces the chances of a 3rd world war and provides a stability bases for a modern times Golden Age of AI and knowledge expansion.