Over the next 3 weeks and 15 trading days, basic use and precious metal commodity prices, cryptocurrencies, and global equities will undergo a severe crash devaluation reflecting both the historical money supply increase in the covid QE period and the subsequent consumer inflation central bank QT response with historical draconian money supply contraction. Only in the 1930s has money contraction occurred to this degree.
An average total asset growth and decay series from the March 2020 low of 28/70/67 of 70/42 weeks :: x/2.5x/2.5x/1.5x is undergoing self-assembly.
This will complete the first and second fractal of an interpolated 1982 13/31/31-32/20-19 years series, which is part of the US hegemonic 1807 36/90/90/54 year series with a low in 1842/43, a low in 1932, and a third fractal high valuation in November 2021.
Expect rapid lowering of Fed Funds interest rates after the crash.
Monthly Archives: April 2023
The March 2022 QT Reckoning 14 April 2023 4th Fractal Crash Devaluation: the Asset-Debt System’s March 2020 33/72(ideal base 29 week)/58/43-45 week Self-assembly 4 Phase Fractal Series
Every individual asset class including commodes and cryptocurrencies can be thought of as being denominated in the total valuation of all (global)assets. When stock valuations decline, bonds lose book value, or debt is defaulted, the total global valuation is diminished. Two to ten year US Treasury yield inversion is the hallmark of Federal Reserve credit tightening and has preceded recessions in 1972-4, 1980-2, 1990-91, 2001, 2007-2009, and 2019-20. This time is different, a much greater % to total debt to GDP exist and a colossal quantitative amount of bad debt needs to be liquidated. The Zombie corporations like many ditsy start-up tech companies, the ARKk ETF, and airline companies have led and will lead the equity valuation decline.
The peak for the CAC and secondary peak for all other equity markets occurred near 14 April 2023, a 33/72 (ideal base 29 x’)/58 week :: x/2.5x’/2x’ fractal growth series. The 58 week third fractal is composed of two weekly series: a four phase growth and decay series of 5/11/10/7 weeks and a 6/13/12 week three phase growth series. A 9 week decay series is coming next.
The final daily series for the French CAC’s second 6/13/12 week fractal series series is 26/62/52 days starting at the low on 29 Sept 2022. and ending at the 52 day high on 14 April 2023. The 52 day series is composed of a 9/22/22 day fractal. Interpolated within this is a 13 March 2023 10/14 of 21/21/13 which completes a 26/62/52/39 day series. The 39 day 9 week decay series would serve as a base for a 9/18-19/18-19 week series completing a four phase March 2020 33/72(ideal base 29)/58/43-44 week series.
The Global Asset-Debt Macroeconomic System’s March 2020 33/72(ideal 29 week base)/58 week : Peak and Lower High Valuations
The French CAC represents the leading edge of the March 2020 Global Asset-Debt Macroeconomy. Unlike other countries, France adopted nuclear energy policy which provides 70 % of its national energy. unlike other western countries France’s consumer inflation problem peaked earlier this year at less than 6 percent because of its energy choices.
The French equity curve is following a March 2020 33/72/58 peak valuation with a gapped blow-off on 14 April 2023, representing the 58 week 3rd fractal.
This pattern is the identical to the Nikkei’s, whose 58 week lower high lower valuation is secondary to Japan’s requirement to import energy. Japan is following a 2009 45-/89/54 month :: x/2x (2.5x’)/1.5x’ three phase fractal series.