**28 February 06**

**
The Devolution Fractal Alignments of The Wilshire and Comex Gold
**Today was a minor economic historical day: the 3 month and thirty

year debt instruments inverted; money poured into the thirty year note

driving the yield on the currently longest US debt instrument below

the yield of 90 day treasuries. Imagine smart money making a thirty

commitment to 4.5 yield interest rates. Teleologically, the only way

it will be a good investment is if asset valuations are diminished

above their carelessly and artificially inflated levels.

Rest assured that the 2006 primary decay fractal will,

retrospectively, make perfect sense in terms of the governing laws of

fractal macroeconomics. There will be a ordered mathematical and

fractally logical connection to the terminal day 62 and terminal week

75 of the 31/77/62: x/2.5x/2x, and the 30/75/75 week: x/2.5x/2.5x

perfect Right Shoulder growth fractals. There are several decay

possibilities - including the previously cited scenario - all of which

are non complex.

Indeed, that asset fractal evolution is non complex is perhaps the

additional fifth rule and perhaps the most important rule of

macroeconomic fractal hypothesis (see EF Update 6 Feb 2006 on 'the

laws of fractal progression'). Taken another way..the most efficient

and elegantly simple pathways for growth or destruction of asset

valuation will occur in mathematically optimal fractally-ordered

sets.

The key rule now operative is the third listed simple rule of the

asset fractal evolution hypothesis stating that the beginning of decay

cycles rest in the apogee peak of the preceding third growth cycle.

The terminal third growth cycle for the Wilshire was a 31/77/77 day

with day 77 being a lower low than day 62 which rested within the 75

week of a 30/75/75 week. Day 62 was included in the projected first

decay base of 11-12 days in a fractally reasonable 11-12/27-30/27-30

decay sequence.

An alternative decay base would include day 77 within the initiating

decay sequence. Was day 77 a natural fractal extension of the third

fractal 2.5 x weekly growth period of the March 2000 Right Shoulder's

30/75/75 week progression. As well, a higher high was made

last week akin to the timing of the second daily fractal high in 1929.

The timing for this sequence would be 10/currently day13 of 25/25.

Interestingly this pattern has an exact fractal match with Gold on the

Comex. Just as in at the end of all major generational macroeconomic

cycles, borrowing contracts, money supply and GDP contracts, leaving

overproduced and overvalued assets with less money per asset.

Deflation of all asset classes is inevitable in the primary descent.

Yet another alluring fractal devolution order set is defined by a

7/17/11 of 17 decay progression. This set has the the very beginning

of the base as day 62. This primary decay fractal sequence would

produce a catastrophic crash over the next six trading days. While an

ultimate equity low might occur in 2015-2016, an intriguing nodal low

in the late summer, early fall of 2006 would be consistent with this

fractal possibility.

Three fractal decay possibilities - all reasonable and each with their

own special merit have began their dance. How will act 1 of 3 end?

Time.... time will tell.....

Gary Lammert