{"id":4961,"date":"2020-02-09T18:44:19","date_gmt":"2020-02-09T18:44:19","guid":{"rendered":"http:\/\/www.economicfractalist.com\/blog\/?p=4961"},"modified":"2020-02-09T18:52:01","modified_gmt":"2020-02-09T18:52:01","slug":"asset-debt-deterministic-saturation-macroeconomics-the-1932-90-year-us-hegemonic-great-third-fractal-peak-valuation-and-crash","status":"publish","type":"post","link":"http:\/\/www.economicfractalist.com\/blog\/2020\/02\/09\/asset-debt-deterministic-saturation-macroeconomics-the-1932-90-year-us-hegemonic-great-third-fractal-peak-valuation-and-crash\/","title":{"rendered":"Asset Debt Deterministic Saturation  Macroeconomics: The 1932 90 year US Hegemonic Great Third Fractal Peak Valuation and Crash"},"content":{"rendered":"<p>The construct of a Global Macroeconomic System operating and self-assembling \u00a0in a time based \u00a0mathematical fractal progression of maximum asset valuation and debt growth and, thereafter at peak valuation, necessary and deterministic \u00a0asset devaluation and \u00a0debt default, which the elegantly simple Lammert quantitative fractal system provides, \u00a0represents \u00a0a useful tool for characterizing\u00a0and understanding \u00a0the complex integrative system.<\/p>\n<p>Topics:<\/p>\n<ul>\n<li>4 February 2020 : The average MSCI World Equity Index valuation \u00a0high, \u00a0MSCI in monthly, weekly, and daily fractals \u00a0from the beginning of the final1982 second subfractal series \u00a02009 third fractal<\/li>\n<li><b>The 1932 US Hegemonic Great Third Fractal<span class=\"Apple-converted-space\">\u00a0 <\/span>Final peak bubble<\/b><\/li>\n<li>A comparison of the<span class=\"Apple-converted-space\">\u00a0 <\/span>terminal 1921 and 2009 respective third fractal portions of the 90 Year Great US<span class=\"Apple-converted-space\">\u00a0 <\/span>Hegemonic 1843 Second Fractal and 1932 Third Fractal Fractal<\/li>\n<\/ul>\n<p>4\u00a0<a href=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/daily-MSCI.png\">February 2020 : The average world equity Index valuation high (MSCI)current MSCI Lammert daily fractal series from its 2 October 2019 average daily low was\u00a0\u00a016\/40\/32 days ::\u00a0 x\/2.5x\/2x. The 32nd day of third fractal 4 February 2020 represents the current average peak high valuation for the index.<img loading=\"lazy\" decoding=\"async\" class=\"  wp-image-4965 aligncenter\" src=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/daily-MSCI.png\" alt=\"daily MSCI\" width=\"294\" height=\"223\" \/><\/a><\/p>\n<p>For MSCI, the world equity index, 4 and 5 February 2020 were the all time average and absolute peak valuation days of this index.<\/p>\n<p><a href=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-peak-valuation-monthly.png\"><img loading=\"lazy\" decoding=\"async\" class=\"  wp-image-4963 aligncenter\" src=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-peak-valuation-monthly-300x102.png\" alt=\"MSCI peak valuation monthly\" width=\"418\" height=\"142\" srcset=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-peak-valuation-monthly-300x102.png 300w, http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-peak-valuation-monthly.png 501w\" sizes=\"auto, (max-width: 418px) 100vw, 418px\" \/><\/a><\/p>\n<p>The monthly terminal fractal series from the adjusted nonQE supported and \u00a0non troubled assets federal acquisition time frame in September 2009 is 26(orange)\/53(purple)\/49(green) months \u00a0:: x\/2x\/2x. \u00a0The third 49 month third \u00a0subfractal is composed of 11\/25\/15 months with the 15 month third subfractal of this final 2009 subfractal series composed of \u00a03\/7\/7 months :: x\/2-2.5x\/2-2.5x<\/p>\n<p><a href=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-December-low.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-4964 aligncenter\" src=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-December-low-300x109.png\" alt=\"MSCI December low\" width=\"300\" height=\"109\" srcset=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-December-low-300x109.png 300w, http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/MSCI-December-low.png 484w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>The 3\/7\/7 months terminal third fractal represent a weekly fractal pattern since the December 2018 low of \u00a011\/23\/(9)\/19 weeks where (9) is a shared interpolated fractal between the second and third subfractal \u00a0for a current third of a third of a third of 1932 \u00a0US hegemonic 90 year third \u00a0fractal series of 11\/28\/22 weeks : x\/2.5x\/2x. The terminal 22 weeks represents the third fractal subseries of this 11\/28\/22 weeks subfractal series.<\/p>\n<p>By the simple saturation fractal math of the asset debt macroeconomic system, 4 and 5 Februrary 2020 appear to be peak saturation days for the \u00a0global system.<\/p>\n<p><b>The 1932 US Hegemonic Great Third Fractal<span class=\"Apple-converted-space\">\u00a0 <\/span>Final Peak Bubble:<\/b><\/p>\n<p><a href=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2014\/11\/Slide03.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3707\" src=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2014\/11\/Slide03-300x225.png\" alt=\"Slide03\" width=\"300\" height=\"225\" srcset=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2014\/11\/Slide03-300x225.png 300w, http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2014\/11\/Slide03-399x300.png 399w, http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2014\/11\/Slide03.png 850w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>The final equity bubble of the 1932 US Hegemonic Great<span class=\"Apple-converted-space\">\u00a0 <\/span>Third Fractal was created during the time period of 2008-2020 with a combination of illiquid trouble assets federal acquisition, \u00a0Central Bank Quantitative Easing, Sovereign Money Printing, and Corporate Tax Slashing resulting in corporate buybacks of their own stocks. <span class=\"Apple-converted-space\">\u00a0 <\/span>Part of the debt explosion<span class=\"Apple-converted-space\">\u00a0 <\/span>has trickled down to the base population, who have then \u00a0leveraged mostly newly created<span class=\"Apple-converted-space\">\u00a0 <\/span>service<span class=\"Apple-converted-space\">\u00a0 <\/span>jobs to incur citizen debt for student loans, automobiles and credit card purchases.<\/p>\n<p>Very telling is that only 1.5 million US<span class=\"Apple-converted-space\">\u00a0 <\/span>jobs have been added since 2000 averaging 75,000 a year with about 30 million boomers retiring since 2010.<span class=\"Apple-converted-space\">\u00a0 The system is a Ponzi scheme with the poignant exception that developed countries have the power to print money and honor their 90 year old social contracts with their working and tax paying citizens.<\/span><\/p>\n<p>A visit to US Federal Debt clock provides perspective.<span class=\"Apple-converted-space\"><a href=\"https:\/\/www.usdebtclock.org\">\u00a0 <\/a><\/span><\/p>\n<p><span class=\"Apple-converted-space\">The\u00a0<a href=\"https:\/\/www.usdebtclock.org\">CBO<\/a> does not factor in its calculations \u00a0expected fractal nonlinearities, bad debt liquidation, \u00a0asset devaluation and expected recessions. \u00a0A review of the 2006 CBO budget outlook (below) shows the disparity between projected deficits and ones that occurred with the collapse of the housing bubble. \u00a0The 2008-2020 propelled bubble will be worse than this is the expected degree of nonlinear asset devaluation occurs.<\/span><\/p>\n<p><a href=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/CBO-budget-2006-2015.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-4966\" src=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/CBO-budget-2006-2015-300x202.png\" alt=\"CBO budget 2006-2015\" width=\"300\" height=\"202\" srcset=\"http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/CBO-budget-2006-2015-300x202.png 300w, http:\/\/www.economicfractalist.com\/blog\/wp-content\/uploads\/2020\/02\/CBO-budget-2006-2015.png 893w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>The Great 1932 US Hegemonic Third 89 year Fractal series: is elegantly simple.<\/p>\n<p>The US 90 year third fractal dating from the low in 1932 is composed of two<span class=\"Apple-converted-space\">\u00a0 <\/span>subfractal series<\/p>\n<ol>\n<li>From the 1932 low ending on 12 August 1982 :<span class=\"Apple-converted-space\">\u00a0 <\/span>51 years<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>And from the August 1982 low to present : 39 years<\/li>\n<\/ol>\n<p>From 1932 to 1982:<span class=\"Apple-converted-space\">\u00a0 <\/span>a x\/2x\/2x fractal series defined by valuation lows : 10-11\/21-22\/21-22 years is easily observable.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>From the<span class=\"Apple-converted-space\">\u00a0 <\/span>August 1982 low: 9\/20\/12 years<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>1982-1990<span class=\"Apple-converted-space\">\u00a0 <\/span>:<span class=\"Apple-converted-space\">\u00a0 <\/span>9 years<\/p>\n<p>1990-2009. : 20 years<\/p>\n<p>2009-2020<span class=\"Apple-converted-space\">\u00a0 <\/span>: 11+ years<\/p>\n<p><span class=\"Apple-converted-space\">\u00a0<\/span>The 4 and 5 February<span class=\"Apple-converted-space\">\u00a0 <\/span>peak valuation days<span class=\"Apple-converted-space\">\u00a0 <\/span>for the MSCI global index fell in the third 19 week fractal of a 24 December 2018 low 12\/30\/19 week :: x\/2.5x\/1.5-1.6x<span class=\"Apple-converted-space\">\u00a0 <\/span>fractal series.<span class=\"Apple-converted-space\">\u00a0 <\/span>A final 1.6x Fibonacci proportionality growth peak with a 12 week base lies in the<span class=\"Apple-converted-space\">\u00a0 <\/span>terminal portion of a 18\/36\/90\/89 year series and<span class=\"Apple-converted-space\">\u00a0 <\/span>is a reasonable maximal growth terminus. This 11\/20\/19 week fractal series represents<span class=\"Apple-converted-space\">\u00a0 <\/span>the<span class=\"Apple-converted-space\">\u00a0 <\/span>terminal third portion of<span class=\"Apple-converted-space\">\u00a0 <\/span>a 11 February 2016 low<span class=\"Apple-converted-space\">\u00a0 <\/span>three phase subfractal series<span class=\"Apple-converted-space\">\u00a0 <\/span>which is the third terminal portion<span class=\"Apple-converted-space\">\u00a0 <\/span>for the 6 March2009<span class=\"Apple-converted-space\">\u00a0 <\/span>low which began the terminal major third fractal subseries and<span class=\"Apple-converted-space\">\u00a0 <\/span>ended a \u00a020 year second subfractal dating from 1990 to 2009 with<span class=\"Apple-converted-space\">\u00a0 <\/span>a 9 year<span class=\"Apple-converted-space\">\u00a0 <\/span>fractal<span class=\"Apple-converted-space\">\u00a0 <\/span>base starting from<span class=\"Apple-converted-space\">\u00a0 <\/span>the August 12<span class=\"Apple-converted-space\">\u00a0 <\/span>1982 valuation low and ending 1990.<span class=\"Apple-converted-space\">\u00a0 <\/span>12 August 1982 again<span class=\"Apple-converted-space\">\u00a0 <\/span>concluded a 51 year 1932 to 1982 first \u00a0fractal subseries of 10-11\/21-22\/21-22 years. 12 August 1982 began the second yearly<span class=\"Apple-converted-space\">\u00a0 <\/span>subfractal series of 9\/20\/12 years of the 90 year third fractal of a 36\/90\/89 year series beginning in 1807 with a 18 year initiating fractal starting in about 1790.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>The third of the third of the third of the &#8230; Lammert growth fractal<\/p>\n<p>1932 : begins the US hegemonic \u00a0Great Third Fractal \u00a0(First US Great Fractal 1807 to 1842-43: 36 years; Second \u00a0US Great Fractal 1843-1932)<\/p>\n<p>1982: ends of first 51 year subfractal series starting in \u00a01932: 10-11\/21-22\/21-22 years)and begins the \u00a0second 39-40 year subfractal series.<\/p>\n<p>1982 -1990 &#8230; first fractal of the second and final \u00a0subseries : 9 years<\/p>\n<p>1990-2009 &#8230; second fractal:<span class=\"Apple-converted-space\">\u00a0 <\/span>20 years<\/p>\n<p>2009 to present &#8230; third fractal series:<span class=\"Apple-converted-space\">\u00a0 <\/span>11 years<\/p>\n<p><b>A comparison of the<span class=\"Apple-converted-space\">\u00a0 <\/span>terminal 1921 and 2009 respective third fractal portions of the 90 Year Great US<span class=\"Apple-converted-space\">\u00a0 <\/span>Hegemonic 1843 Second and 1932 Third Fractals<\/b><\/p>\n<p>The<span class=\"Apple-converted-space\">\u00a0 <\/span>11 + year terminal portion of the 1843 US Hegemonic Second Fractal as compared to the 11 + year terminal portion of the 1932<span class=\"Apple-converted-space\">\u00a0 <\/span>89 year US hegemonic Third Fractal.<\/p>\n<p>1919\u2013<b>1921<\/b>: Bear market. The Dow lost 46.6% of its value in just over 21 months, before reaching a <b>low<\/b> of 63.90 on August 24, <b>1921<\/b>.<\/p>\n<p>What was the stock market increase from 1921 to peak 1929?<\/p>\n<p>Between <b>1921<\/b> and <b>1929<\/b> the <b>stock market grew\u00a0<\/b>by <b>600% <\/b>with the <b>Dow<\/b> Jones Industrial Average rising from 63 points to 381 points. \u00a0This rapid growth was based on cosumer credit to purchase newly\u00a0manufactured items and the practice of ten percent margin purchase of equities.<\/p>\n<p><b>Great Depression\u2019s \u00a0DJIA<span class=\"Apple-converted-space\">\u00a0 <\/span>maximum devaluation<span class=\"Apple-converted-space\">\u00a0 occurred\u00a0<\/span>on July 8, 1932; 32 months after its 1929 peak. \u00a0\u00a0<\/b>On this day in 1932, the Dow Jones Industrial Average fell to its lowest point during the Great Depression, closing at 41.22. From its highest level in 1929, the Dow had a devaluation of nearly 90 percent.<\/p>\n<p>The sharp stock market decline in the wake of the 1929 crash not only affected Wall Street. It also undermined consumer consumption as foreign trade, industrial production and employment fell precipitously for the ensuing decade. In political terms, it led to the 1932 victory of Franklin D. Roosevelt, the first Democrat to be elected president since 1916.<\/p>\n<p>Aug 24 1921 to 8 July 1932 <span class=\"Apple-converted-space\">\u00a0 \u00a0 \u00a0 \u00a0 <\/span>11 years<span class=\"Apple-converted-space\">\u00a0 <\/span>&#8211; 2\/12 months<\/p>\n<p>6 Mar 2009 to<span class=\"Apple-converted-space\">\u00a0 <\/span>current 7 Feb 2020<span class=\"Apple-converted-space\">\u00a0 \u00a0 <\/span>11 years &#8211; 1 month<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>6 March 2009: \u00a0On this day, the Dow Jones Industrial Average hit its lowest point of the financial crisis of 2008 and 2009. \u00a0The S&amp;P 500 was trading at 683.38 and the Dow dipped as low as 6,469.95.<\/p>\n<p>&nbsp;<\/p>\n<p>In March 2009, it seemed as if nothing could stop the plummeting stock market as U.S. investors feared the entire banking industry was on the brink of collapse. The largest U.S. banks had been bailed out by the government via the Troubled Assets Relief Program, and investors struggled to understand just how bad the situation was.<\/p>\n<p>The current SPX high:<span class=\"Apple-converted-space\">\u00a0<\/span><b>29,286.92.<span class=\"Apple-converted-space\">\u00a0 \u00a0F<\/span>rom \u00a0its 2009 \u00a0683 low, this represents a 450% rise.\u00a0<\/b><\/p>\n<p>The construct of the Macroeconomic System operating and self assembling \u00a0in a time based \u00a0mathematical fractal progression of maximum asset valuation and debt growth and, thereafter at peak valuation, necessary and deterministic \u00a0asset devaluation and \u00a0debt default which the Lammert quantitative system provides \u00a0represents \u00a0a useful tool for characterizing\u00a0and understanding \u00a0the system.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The construct of a Global Macroeconomic System operating and self-assembling \u00a0in a time based \u00a0mathematical fractal progression of maximum asset valuation and debt growth and, thereafter at peak valuation, necessary and deterministic \u00a0asset devaluation and \u00a0debt default, which the elegantly simple Lammert quantitative fractal system provides, \u00a0represents \u00a0a useful tool for characterizing\u00a0and understanding \u00a0the complex &hellip; <a href=\"http:\/\/www.economicfractalist.com\/blog\/2020\/02\/09\/asset-debt-deterministic-saturation-macroeconomics-the-1932-90-year-us-hegemonic-great-third-fractal-peak-valuation-and-crash\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Asset Debt Deterministic Saturation  Macroeconomics: The 1932 90 year US Hegemonic Great Third Fractal Peak Valuation and Crash<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4961","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/posts\/4961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/comments?post=4961"}],"version-history":[{"count":1,"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/posts\/4961\/revisions"}],"predecessor-version":[{"id":4967,"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/posts\/4961\/revisions\/4967"}],"wp:attachment":[{"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/media?parent=4961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/categories?post=4961"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.economicfractalist.com\/blog\/wp-json\/wp\/v2\/tags?post=4961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}