Equity, Gold, Bitcoin, Commodity Crash Alert: The Big Picture: Volcker’s 1981 Great Second Fractal  13/31-33 Year Asset Valuation Crash.

The US Asset-Debt system is undergoing an 1807 36/90/90/54 year  :: x/2.5x/2.5×1.5-6x Self-Assembly Great Fractal Cycle with asset valuation lows in 1842/43 and 1932, and a high in 2021.

The 90 year Third Fractal and the 54 year Fourth Fractal are composed of two interpolated equity fractal series  starting in 1932. The first series was a 10-11/21/21 year fractal ending with a yearly low in 1981/82. The second equity series, the Volcker US bond low series, began in 1981/82: and consists of 13/33/33/18-20 years, ending in 2074-76

The Volcker Second Fractal series started with a 3/7/5 year 13 year base  equity fractal from 1981/82 to 1993/94.   The second fractal to this first base was compose of two sub-series:  3/7/7 year series ending in 2009 and a 4/10/4 of 6-7 year series ending in 2025-2026.

Volcker’s 30 year bond prices decreased from their 15.1% high  in 1981 to 0.8 percent in 2020.  The lowering of bond rates correlated to both one: rapid money supply expansion with the accumulation of 93 trillion dollars of total US debt rising to an unprecedented 350% of GDP,  and two: with an asset  super bubble. Composite US equity valuations rose to the November 2021 90 year  Third Fractal high and housing valuation prices rose beyond the 2007 peak price to wage earning ratio. Financial  corporations, enabled by low mortgage  interest rates and advantaged availability to capital, drove valuations up, crowding out wage earners.

The Fed’s recent mini Volcker attack on consumer price inflation has taken  the fed funds rate in less than a year from 0.25  to 4.25-4.50, an unprecedented 1800% increase above the nadir rate. This percentage increase has never happened before. With the massive  US debt to GDP ratio and extreme housing valuations, this accelerated interest rate increase will result in a nonlinear 13/30-33 year 1981-82 second fractal  asset valuation price collapse.

At 93 trillion dollars of debt supported by only 26 trillion GDP,  mostly service job related, the US asset-debt system cannot tolerate 3.5-4.7 interest rates. During the US Fourth Fractal’s next 52-54 years, interest rates will not only return to zero levels, they will (must), like Germany, become negative for  to the asset debt system to survive. The disparity between the working class and those individuals and entities with disproportional access to capital and having financial assets grown disproportionally by negative rates, will become greater. The rich will enable a sympathetic populist to gain control of the political system.

The final 6-7 years of the 2009 4/10/6-7 year second subfractal series is likely composed of two subfractals : a March 2020 8/17/13 of 13 of 17 month subfractal series with a possible repeat of a similar monthly fractal sequence.

Over the next 11-12 trading days expect nonlinear declines in the Wilshire, Gold, and Bitcoin to conclude the Equity March 2020 8/17/13 of 17 month subfractal series.

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