1929 and 2026 Self-Organizing Fractal Self-Similarities: The US Midterm Election Crash Nadir

If 1929 and 2026 weekly and daily fractal growth and decay self-similarities hold true, the 2026 initial crash nadir will occur on 30 Oct to 3 November 2026, the latter, the date of the midterm elections. In 2026 the US economic GDP growth is being propelled by an anticipated 2.6 trillion dollars of global credit expansion and debt accumulation on AI software,hardware, and data centers. This credit expansion has been responsible for 90% of 2026 GDP growth. The real consumer US economy propelled by governmental deficit spending is in dire straights and pushing on a long thready string. Compare the ratio of average annual US %GDP growth to average annual governmental GDP% deficit spending during the following periods: 1940-45: WW2, 1945-1980: post war boom, 1980 to 2000: deregulation and tech boom, 2000-2009: housing boom and crash, 2009-2025: post great recession and covid QE, and 2025-2026 private credit AI and data center bubble. Average Annual %GDP Growth (%) to annual Deficit Spending Ratio 1940–1945 12.1% to 14.5% 0.83 : 1 1945–1980 3.2% to 1.1% 2.91 : 1 1980–2000 3.2% to 2.7% 1.19 : 1 2000–2009 1.8% to 3.2% 0.56 : 1 2009–2025 2.1% to 6.5% 0.32 : 1 2025-2026 excluding private AI bubble growth .03-0.5% to 6% 0.05 to 0.08:1 With US deficit at historical high peace time levels, GDP growth in 2025 and 2026 excluding bubble AI credit expansion is likely less than a .08% ratio, 1/35 to 1/55 of the post WW2 war boom growth. Had the Iran war and trade wars not intervened, blow-off valuations for equities and in particular AI-related stocks would have been much higher, but timing of the fractal nadir would have likely been the same. With inflation driven by tariffs and high energy costs, the 10 year Note and 30 year Bond increasing interest rates have put a damper on the equity blow-off and further private investment. Trailing yields on US ten year notes have been negative for the last 24 months for the first time in 223 years (with the exception of one month in 1959.