With an initiating fractal series of 18 years, The the  US Hegemonic Great Fractal series started in I 1807 and is composed of three decades-long  sub fractals: 36/90-91/88 years :: x/2.5x/2.5x. The  maximal debt dependent peak equity  growth saturation valuation of the third 88 year year sub fractal  occurred on 26 July 2019.

Coming is a breathtaking US hegemonic 88-89 year 3rd  fractal collapse. The 2019 third fractal collapse with its  more acute and shorter dv/dt negative valuation nonlinearity will pale the slower descent of the 32 month peak-to-nadir 1929-1932  :: 88-91 year US hegemonic 2nd fractal collapse.

Retrospectively, global  Central Bank and Sovereign  interventions have made measurable and observable differences in the natural fractal progression of composite equity valuation decay, bending negative devaluations to the positive side within the subunit series final fractal decline –  but still self organized  in  the deterministic self organized fractal valuation quantum subunit units that characterize the Asset Debt Macroeconomic System.

For the SPX, representing the plurality global equity proxy, this subunit bending occurred in 2002-3 and again in 2008-2009 where the last two subunits of a y/2-2.5y/2-2.5y/1.5y  naturally occurring 4 phase fractal decay progression, instead of occurring at a negative dv/dt rate,  (v = valuation, t =time) occurred at a positive dv/dt trend or y/2-2.5y/2.5x/1.5 x while the (monthly) fractal  quantum subunits remained intact.

The base fractal sequence from the SPX 2002 low was 3/6/6/4 or 16 months. Central banks lowered interest rates and facilitated debt growth through lower interest rates,  derivative manipulations, overinflated credit scores,  and manipulated engineered financial instruments to allow initiation of positive SPX valuation growth in late 2002. Politicians urged the base population of the macroeconomic pyramid to shop and spend(acquire more debt).

The resultant growth fractal in 2002 for the SPX was 16/33/39 months.  The last 39 month fractal was 9/20/12 which  mirrors the final 1982  9/20/12  projected yearly fractal low although central banks will attempt to intervene again,  likely bending  the  monthly nadir low in 2020 from its ideal low .  On the other hand, with European banks currently at negative interest rates and the potential fragmentation of the European Union, the ideal nadir point may be reached.

The final 12 year fractal starting on Sept 2  2009 ( vice in March 2009) is composed of an expected  26(21 ideal)/53/53 month :: y/2.5y/2.5y decay fractal with a peak at x/2.5x/2x ::  21/53/42 months in July 2019. The 21 month base fractal ideal (vice 26 month actual) is based on a 53 month second fractal.  Note that the 26 month base fractal starting in September 2009 is composed of a 2/5/4/3 month 4 phase  growth and decay fractal series followed by a  3/7/8 month 3 phase decay fractal series

The third sub fractal 42 month peak valuation occurred on 26 July 2019 and was composed of a  9/19/16 month fractal series with a final lower secondary high on 19 September 2019 at 9/19/18 months.

There is an elegance in the simplicity of this macroeconomic asset debt system akin to the elegant simple math of non black hole macro and quantum-mechanic physics. The earthly asset debt macroeconomic saturation fractal mathematical  termination of a x/2.5x/2x :: 21 ideal/53/42 month fractal growth sequence contained in the y/2.5y/2.5y :: 21/53/53 month decay sequence is …  simply … the most efficiently elegant mathematical pathway to capture terminal growth in a slightly longer decay sequence.

Again, if central banks and politicians are creative  and effective enough  in doing their jobs, the 2020 low valuation for global composite equity’s will be short of a 26(21 month ideal)/53/53 month fractal progression. With global central bank stimulus , the low, like 2003 and 2009, could be in March 2020 at the second sub fractal  termination, rather than in June 2020 at the end of the third sub fractal for a 26/53/53 month :: y/2-2.5y/2-2.5y

of a 2/5/4-5/3 month sub fractal series.

Saturation Macroeconomics: The US Hegemonic 1807 212 year Third Fractal collapse: 36/90/88 years :: Dec 2018 32/79/77 days … Bitcoin leads the way: a  Deterministic Global Asset Valuation Collapse

The secondary SPX composite equity peak valuation for the global system was on 19 September 2019.  26 July 2019 represented the nominal peak for the SPX US equities composite. 

The coming 8 week  nonlinear devaluation is deterministic, unrelated to political events, and is an inherent expected part of the natural decay process of  the macroeconomic system.

This deterministic asset debt macroeconomic system is self organizing in its  growth, peak asset and debt valuations, and in its fractal time dependent  asset and debt  Gompertz’s like valuation fractal  decays.  

Qualitatively growth phases are self reinforcing and additive and  promote employment which generate more debt based asset growth related to its nature in generating more base borrowing 

… until a saturation peak of debt load, employment, asset valuation and asset ownership is reached for the population constituting the base of the macroeconomic system pyramid.Thereafter,

natural devolution of asset over valuation, over ownership, and bad debt liquidation occur … associated with rapid increases in unemployment and further deleveraging.

This blog observes the macroeconomic system as having  elegantly simple self assembly and deterministic underlying growth and decay fractal mathematical patterns. 

The general growth (x) and decay pattern (y) occurs in a x/2-2.5x/2-2.5x/1.5y four phase fractal pattern and the subset decay pattern occurs in  a y’/2-2.5y’/2-2.5y ‘ time pattern.

For the United States with an initiating base of 18 years starting in 1790, the 1807  x/2.5x/2.5x saturation growth pattern is 36/90/88-90 years (212 years) with 1932 

observed as the end of the second US equity equivalent fractal period. The global macroeconomic system is in its 88th year of a 88-90 year third fractal cycle, defined by its  current hegemonic 

leading country. The 4th phase 1.5y time period decay fractal for the US to complete this cycle is 54 years.

Commodities, Metals, Bitcoin, and Global Composite Equities are at a time dependent edge of an intermediate and significant  nonlinear devaluation. With current debt load of both sovereigns and base populations,

all entities (except US sovereign debt futures)have reached their peak valuations for the third 88-90 year fractal cycle.  All asset and debt valuations are based  on the summation denominator of the total worth of those assets and debts. 

Bitcoin as the most useful of commodities is leading the current intermediate valuation collapse.

US Hegemonic and Global Historical Macroeconomic  Asset Valuation nonlinear fractal decay.

The 32/79/64 day growth pattern for the SPX since the 2018 December low represents confirmation  of the Lammert  self assembly fractal pattern characterizing the system’s maximum growth.  This is the final growth valuation saturation area of a 36/90/88 year US fractal series starting in 1807 with an initiating fractal of 18 years starting in 1790.   Asset valuations have exceeded those

reasonably expected on the base citizens’ wages and are related to the enormous bad debt created by the financial system. A  deterministic devaluation period has begun. Negative interest rates represent the leading edge of that devaluation with outright debt default coming.

The devolution will occur in a deterministic elegantly simple fractal manner which characterizes the asset valuation growth and decay of the global asset debt macroeconomic system.

The 2018 third of the Feb 11 2016 third of the 2009 third of the 1982 third of the 1932 third of the US hegemony  1807  36/90/88 year macroeconomic  asset debt valuation fractal  series began on 2 April 2018.