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The Great November 2019 Crash: The Simple Fractal Valuation/Devaluation Saturation Math of the Global Asset-Debt Macroeconomic System

 

The Great November 2019 Global Equity Nonlinear Crash:

As Deutsche Bank goes from its December lows: 7.5/18/15/10 of 12 weeks :: x/2.5x/2x/1.6x so goes the Global Macroeconomic Asset Debt Valuation System:

DB

In the face of global stagnation: default on bad global debt is at its qualitative  nonlinear break point.

The global system  now has the dual burdens  of enormous debt load and a non-expanding global economy.  In the setting of a  non-expanding economy to partially service and sustain the quality of  that debt, recognition will be made that the debt cannot be repaid and it will under default initiating a cascade of asset devaluation and larger secondary derivative bet devaluations.

From its December 2018 lows, the Deutsche Bank weekly fractal series conveys the true state of both the European and Global Macroeconomic system. Quantitatively Deutsche Bank’s weekly fractal series and current week of that fractal series exactly matches the Global Macroeconomy’s position of sudden nonlinear collapse.

The inability and failure to further expand and inflate to sustain debt quality represents the exact conditions of a terminal illness for global asset-debt system’s  peak cycle asset valuations. 

Like death, asset devaluation is a sudden nonlinear event.

Was the US Federal Reserve right in lowering interest rates and encouraging citizens to preferentially place their money in a stock market deterministically destined to collapse within a fixed time fractal frame?

The Reserve can make the claim that it was attempting to  do everything it  could to prevent the inevitable. 

For Deutsche Bank, its weekly fractal series is telltale of a nonlinear collapse occurring over the next 7 to 8 trading days. Deutsche Bank’s first and second fractals are in a classical Lammert Fractal pattern of x/2.5x :: 7.5/18 weeks.

Deutsche Bank’s third and fourth weekly fractals of the four phase series are interpolated into two subfractal series of 2/5/4/3 weeks and  3/7/6 of 8 week series with a peak valuation on week 15 of the interpolated series or week 2x of the x/2.5x/2x :: 7.5/18/15 week fractal growth series. The 4th week fractal is composed of 12 weeks starting from the 15 week high of the third fractal for a completed fractal series from the December low of 7.5/18/15/12 weeks :: x/2.5x/2x/1.5-1.6x.  Nonlinearity and DB devaluation is expected in the next  8 trading days representing weeks 11 and 12 of the 4th descent fractal.

For the SPX from its December 2018 low,  the final series is x/2.5x/2.5x/1.5-1.6x :: 32/79/77/42 of 50 days with the 1.5-1.6x 4th fractal in  a yx’y’  pattern with x’ representing a 32 day blow-off fractal.

The SPX December 2018  low’s first and second fractals of 32/79days :: x/2.5x  exactly matches Deutsch Bank’s December 2018 low’s first and second weekly fractals.  

The SPX’s third fractal has a secondary peak of  2.5x or 77 days. The first y descent of its 4th fractal  from the 77 day peak third fractal is part of a larger 16 day base descent fractal  for an expected 40 day second fractal. 

The blow off  x’ fractal is now at the 32nd day with a gap higher on Friday 15 November 2018 ending near the high of the day. The x’  32 day blow off fractal pattern (with a 16 day base descent fractal ) is composed of two subfractals: 4/9/6 days and 5/10/3 days with an expected  y’ descent of 8 days for a 16/40 day :: x/2.5x fractal series.

Expect the inevitable deterministic  and mathematical expected. Expect system nonlinear devaluation.

Google’s 45 Quarter Second Fractal Terminal Expected Nonlinear Devaluation

Google’s base fractal sequence (x) starting in 2004 self assembled itself into a classic Lammert Fractal 4 phase growth and decay series lasting 18 quarters. (see graph below: 3/7/6/5 quarters =18 quarters) The maximum length of a second fractal series is 2.5 times the base sequence (x).  For Google with  a first fractal base sequence of 18 quarters, the maximum length of the second fractal is 45 quarters x/2.5x ::18/45 quarters.

In October 2019, Google entered the time period of its second fractal’s 45th quarter.  Google’s 45 quarter second fractal is composed of two sub fractals, the first of 13 quarters and the second of 33 quarters. This also is a x/2.5x sequence of 13/33 quarters.

In October 2019 Google entered the 33rd quarter of its 45 quarter second fractal  x/2.5 ::13/33 quarter sub fractal series.

Screen Shot 2019-10-27 at 10.58.20 AM

From the face page of the 2005 Economic Fractalist:

The ideal growth fractal time sequence is X, 2.5X, 2X and 1.5-1.6X. The first two cycles include a saturation transitional point and decay process in the terminal portion of the cycles. sudden nonlinear drop in the last 0.5x time period of the 2.5X is the hallmark of a second cycle and characterizes this most recognizable cycle.

Expect the expected which the elegantly simple patterned science of saturation macroeconomics allows prediction.

The global asset debt macroeconomic system is elegantly quantifiable and deterministic in its intrinsic nature. Its assets grow in sequential fractal and sub fractal units  to their necessary maximum valuation saturation areas which underlying  debt expansion can produce with thereafter necessary devaluation in a Gompertz fractal manner.

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