The March 2020 through December 2022 Cycle of Historical Central Bank Quantitative Easing and Resulting Consumer-Based-Inflation Central Bank Quantitative Tightening

Most of the US central bank excessive debt and money creation since the 2007-2010 global real estate collapse has flowed into the US financial sector and to a much lessor extent to foreign sovereign manufacturers which has also benefited US corporation sellers of those manufactured goods and again the financial sector. US corporations have used those easy profits from the QE easy money programs for stock buy-banks, elevating the wealth of corporate leadership.

This has resulted in a extremely overvalued financial sector whose financial engineering of collateralize derivates of asset products represents at best a landscape of Evergrande-built decaying Chinese high rises constructed without plumbing, elevators, and electricity. It is a quadrillion dollar house of cards which leaves the global asset-debt system exposure to instantaneous liquidity problems and nonlinear valuation collapse. An observable large black swan paddles in the pond awaiting flight …

November 2021 represented a March 2009 31/62/62 month :: x/2x/2x three phase fractal valuation maximum growth high for the Wilshire and Bitcoin in US dollars.

November 2021 represented an 1807 three phase fractal 36/90/90 year ::x/2.5x/2.5x maximum valuation high for the US equity market and its progenitor earlier tradable exchange systems.

November 2021 represented a March 2020 three phase fractal 15/37/37-38 week :: x/2.5x/2.5x maximum asset valuation growth for the Wilshire composite. Because money was both given directly to the real economy wage earners during this new phase of pandemic QE and because there were supply shortages and political constraints on domestically produced energy, real consumer inflation occurred this cycle prompting central bank unprecedented rapidly accelerating QT.

The elegance of the asset-debt system is in its efficient self-assembly mathematical asset valuation time-based fractal growth and decay process, Valuation decay begins and is integrated in he time period of terminal valuation growth.

The quadrillion dollar asset derivative house of cards created by unregulated financial engineering is ripe for a nonlinear liquidity crises causing nonlinear devaluation of the entire asset-debt system ….

A possible three phase y/2.5y/2.5y fractal decay pathway is shown below in BLUE. :: 11-12/27/27-28 weeks (while maximal weekly growth in shown in RED)