Maximum growth from the SPX 23 March 2020 low to the 5 February 2021 High :: x/2.5x/2.5x :: 38-/93/93 days … The Great US 145 Year Nonlinear 1877 Second Fractal Crash devaluation: y/2-2.5y/2-2.5y decay series starting on 29 January 2020: 3/4 of 7-8/7-8 days:
Does the knowable universe self assemble to a maximum entropy/low energy/ low temperature/dimensional spacetime ‘growth valuation’ state and thereafter again nonlinearly collapse into a singularity – the universe transitioning as a cyclical growth and decay pattern?
The asset valuations of the asset-debt macroeconomic system, a subset of that energy- space-time universe, observably does just that.
Asset valuations of the globally interlinked deterministic asset-debt macroeconomic system, grow in observable hourly, daily, weeky, monthly, quarterly, and yearly quantum fractal patterns with maximal growth valuation dependent on prevailing credit and interest rates and thereafter undergo nonlinear collapse.
The US current hegemonic Asset Debt Macroeconomic system began with an initiating fractal series of 18 years in 1790 formalized by the New York Buttonwood agreement in 1792 and ending in the panic of 1807.
First US Great Fractal 1 71 years. (x)
The Louisiana purchase and credit expansion after the panic of 1807 provided the substrate for land speculation. This speculation ended with the peak valuation collapse with the panic of 1837 and ended with a nadir of commodity and equity equivalent valuations in 1842. This represented a 36 year 1A fractal sub-series from 1807 to 1842. The 1B fractal sub-series ended in the panic of 1873, fueled by US railroad expansion and international investment with a nadir of commodity and equity valuations in 1877 for the second fractal sub-series also with a length of 36 years. The total length of the US Great First Fractal series from 1807 to 1877 spanned 71 years. (The first and the last year are counted in the fractal series)
Second US Great Fractal 2 currently 145 years (2-2.5x)
The Second US Fractal is composed of two sub-fractal series; 2A from 1877 to 1932 and 2B from 1932 to 2021. 2B is composed of two fractal sub-series 2BA 1932 to 1982 and 2BB from 1982 to 2021.
The 2A fractal sub-series from 1877 to 1932 was characterized by peak valuation in the late 1920’s and was fueled by World War 1 and in late 1920’s by personal credit expansion by manufacturing companies for automobiles and appliances and by marginal buying of equities.
The 2BA fractal sub-series from 1932 to 1982 was composed of a 2BA1, 2BA2, 2BA3 : 11/21/22 year :: x/2x/2x fractal sub-series. The 2BB 1982 sub-series was composed of a 2BB1, 2BB2, 2BB3 :: 9/20/13 years :: x/2-2.5x/1.5-1.6x fractal subseries. (13 years =1.6x of the ideal base length for the observed 1990 20 year second fractal ending in 2009. 20 divided by 2.5 = 8 years; 1.6 times 8 = 13 years)
The 2BA fractal sub-series from 1932 to 1982 was fueled by credit expansion and work projects from the1930’s depression era, massive deficit spending during World War 2 and the Marshall plan and Cold War deficit spending.
The drivers for debt credit expansion for the 2BB 1982 to 2021 40 year fractal series has been provided by multiple vehicles.: 1. steadily cascading falling US long term interest rates with high rates in 1982 established by Chairman Volcker to combat inflation; 2. american CEO lobbied NAFTA and Asian trade agreements to use ultra cheap then third world labor to maximize American company CEO profits. Credit was provided by those countries and represented trillion of dollars of American trade deficits.; 3 debt financial engineering using collateralized debt tranches, and fradulent valuation and credit worthiness assessments 4 expansion of the federal deficit as a percentage of GDP with money creation ex nihilo; 5 exploding corporate debt with sustaining of zombie companies by relatively low interest rate borrowing and further CDO creation. Overvaluation bubbles occurred in a series of peak valuations for a series of asset classes; the internet and cable industry in 2000, the global real estate bubble in 2008, the global debt bubble in 2019 with negative Sovereign European long term interest rates, and the current tech and Tesla bubble, the latter with a PE ratio of greater than 1700.
The 1877 2BB2 fractal sub-series of the 1982 9/20/13 year sub -series ended in March 2009.
The final 2BB3 fractal subseries of 13 years starting in March 2009 of the 1982 second subfractal series is also composed of a three fractal sub-series: 2BB3a 2BB3b. and 2BB3c
The 2BB3c fractal of this March 2009 sub-fractal series beginning on 11 February 2016 is composed of a 10-11/26/ 27 month three fractal sub-series: 2BB3c1, 2BB3c2, and 2BB3c3.
Starting on 24 December 2018, final 27 month fractal series has self assembled into two sub fractals 2BB3c3a and 2BB3c3b. 2BB3c3a ended with a y/2.5y/2.5y :: 6/15/15 day decay fractal with a nadir in March 2020 and lasting 16 months. A 4 day lower low base fractal includes the 15th day of the third 15th day (6/15/15 day) decay fractal sub-sereis.
The 4 day lower low ended on 23 March 2020 and began the initiation of a 2BB3c3b1 38 day first fractal.
The 2BB3c3b fractal subseries is also composed of three fractal subseries: 2BB3c3b1, 2BB3c3b2, and 2BB3c3b3 ::
The current 12 month 2BB3c3b fractal sub-series starting on 23 March 2020 has progressed to maximum x/2.5x/2.5x growth with a length of 38-/93/93 days ending on 6 February 2021.
The operating collapse decay fractal is a 3/4 of7-8/7-8 days : y/2-2.5y/2-2.5y decay fractal series starting on 29 January 2021 or 21/21.5 of 45-48/45-48 trading hours. (For the SPX there are 7.5 trading hours to the equivalent trading day.)
If the higher low 41 day base (which includes the terminal day of the 2B3c3a terminal 6/16/15 day decay series)starting on 18 March 2020, is used as the operating first base) the projected end is 2.5x times 4 days or about 10 days more of final decay. Taken another way, the maximum peak valuation occurs 2.5x of the 38-(minus) day base (x) at day 93 of the third fractal (5 February 2021)and a final low at 2.5 times the 41 (the higher low) base or day 102.5 of the third fractal of the 41 day base.
This will end an 1877 145 year US hegemonic Great Second Fractal with an 80-90 percent expected collapse of global equity and commodity prices including gold in US dollars and Bitcoin in US dollars over the next 10 trading days.
During the next 10 trading day equivalents, equity and commodity valuations will collapse and the US dollar against other currencies will briefly greatly appreciate, serving as the temporary vehicle for the purchase of temporarily depressed global equity and commodity prices.
During the Third US Great Fractal beginning in February 2021, negative interest bearing 30 year US bonds will result in hyperinflation of all asset classes. Self assembly growth of asset valuation swill be highly ordered and occur to the simple ordered patterns and simple scientific fractal laws of the Asset-Debt Saturation Macroeconomic system.