Sunday, January 10, 2010

THE AMERICAN FRACTAL ECONOMY, 2010-2020

The American Fractal Economy will become the "new normal" for the United States.  This new model of the American Economy is extremely inportant for investors.  We have entered into a
a post-derivatives chaotic economy created by the shadow banking system.  The new normal is  nothing more than the recognition of the emerging fractal creating a new pattern of economic activity.  The new boundaries of the American fractal economy is: (1) the recognition that the Japanese fractal is the prime mover of the American economic spending; (2) there will be two groups invovled in the American economy: (a) 20% of Large Cap. companies who will be accelerating out of the Great Recession and; (b) 80% of the other companies that will be deaccelerating and integrating into the Great Recession; (c) Identification of the companies that will be accelerating out the Great Recession will be the big winners; (3) K waves are the basis for commodity growth will be interrupted for 5 years and great a new downwave in commodities; (4) the American Banking system is deleveraging from the derivates debacle which means contraction of lending for 8 years; (4) Consumers have just started deleveraging for the next 10 years and this is truly a lost decade for the consumer; (5) State Government will be deleveraging for about 10 years and create a massive lost of revenues; (6) Private Industry will be doing like GE looking for cash and cleaning up the balance sheets for 5 years; (7) The Republicans will discover that

Say's law does not work and the supply does not create demand; (8) the Millennial generation will respond to the fractal by creating large democratic party majorities and create new public policies; and finally (9) the American GDP will hoover around 1.7% to 2.3% for the next decade.  This is the time to re-discover Chinese, Indian and Brazilian stock market.

No comments: