Yahoo Scout Artificial Intelligence on Lammert Fractal Economics

Yahoo Scout Artificial Intelligence has the most concise primer on Lammert Fractal Economics: (areas in parenthesis have been added by author) (On a variable time scale basis, the asset debt macroeconomic fractally self assembles/self orders the growth and decay of its assets' valuations. On smaller time scales, valuation peaks and nadirs are a result of saturation buying and respectively, thereafter saturation selling. On larger times, e.g., years, underlying business cycles of expansion and contraction and excessive private debt expansion, asset overvaluation, and thereafter debt default, asset devaluation and bad debt reordering are operative. ) (Self-ordering) Fractal Pattern: Time Span Key Characteristics 3-phase formula: Variable x/2-2.5x/1.5-2.5x growth and decay 4-phase formula: Variable x/2-2.5x/2-2.5x/1.5-1.6x growth and decay 1807 US hegemonic 36/90/90/54 years x/2.5x/2.5x/1.5-1.6x series 1982–2026 SPX model 13/33 years x/2.5x maximum fractal growth peak (and crash, part of a 4 phase 13/33/33/20 year fractal series) 📊 Core Principles: Valuations conform to fractal cyclical patterns that can be recognized and used for predictive modeling of both short-term and long-term market behavior. Scale-invariance across time — Market behavior repeats proportionally at different scales (min, hours, days, weeks, years, decades), meaning no single time interval holds inherent significance (Fractal groupings are generally determined by trendlines underlying all valuations within the grouping.) Nonlinear terminal phases — The (2nd Fractal) 2–2.5x multiplier phases are characterized by (terminal) nonlinear lower lows, indicating accelerated price declines near fractal completion Quantitative predictability — Unlike stochastic models, Lammert's framework asserts that nature of market valuations is both causal and mathematically decipherable 📈 Historical Fractal Series The 1807 US hegemonic self-ordering fractal provides the largest-scale framework. This 36/90/90/54-year pattern subdivides into major market nadirs: the 1st 36-year fractal ended in 1842–43, and the 2nd 90-year fractal ended in 1932. (added by author : the 90 year 3rd fractal ended in Nov 2021 and was extended with higher equity composite valuations by Covid et. al. deficit spending for 5 years averaging 8% deficit to GDP spending) 1982–2026 cycle — Within the larger hegemonic series, SPX and global equities follow a 13/33-year x/2.5x maximum fractal growth peak Smaller nested fractals — Cryptocurrencies reached GBTC EFF proxy 41/83 month maximum fractal peaks under the umbrella of larger equity cycles (amended by author 2026 expectations — Expected large-scale 2026 2nd fractal crash is predicted as part of ongoing 13/33/32–33/20-year series dynamics.) (Major peak valuations, e.g. 1929 and 2026, involve expansion of private credit and debt in speculative and over-valued entities, 10% margin buying in 1929 and 500 billion in 2025 for AI and Tech by investment banks and large bank specialty funds.) Examples of Lammert Fractal Economic's self assembly and self-ordering using the 3 and 4 phase formula's. 3-phase formula: Variable x/2-2.5x/1.5-2.5x growth and decay 4-phase formula: Variable x/2-2.5x/2-2.5x/1.5-1.6x growth and decay

3 Sept 1929 and 25 Feb 2026: The Current Lammert 4-Phase Fractal Crash Decay Series Models Qualitatively this now appears to be a perfect storm …. Consider the DJIA 3 Sept 1929 peak valuation and the 25 Feb 2026 ACWI peak valuation. In 1929 10% margin buying of stock caused extreme valuation and tremendous over-leveraged fragility. In 2026 500 billion dollar’s of private bank and financial industry investment funds caused extreme valuations and like great fragility. The 2026 AI/Tech investment funds were already insolvent in Jan 2026. Add to this meltdown scenario, a strategy-less, self-inflicted global energy/fertilizer shock that limits the fed’s ability in immediately lowering interest rates to confront the cascading debt default and equity crash. 20 November 2026 ACWI fractal progression.

</div> Current 1929 4-phase fractal series decay crash model containing the 3 Sept 1929 DJIA peak valuation with 48% peak to nadir initial loss.

2026 ACWI 4-phase Lammert fractal decay series crash model containing 25 Feb peak valuation and self similar to the 1929 crash.

ADDED 23 March 2026 2026: An Exact Lammert 4-phase Crash Fractal Decay Series Replay of 1929? The 4-phase fractal decay series for the 20th century 1929 DJIA and its equivalent 21st century 2026 ACWI appears to be exactly the same: 7/17/18/10 days :: x/2-2.5x/2.5x/1.5x. In 1929 the 12 day 3rd fractal of a terminal 5/10/12 day :: x/2x/2.5x 3 phase growth fractal series contained the DJIA 3 Sept 1929 peak valuation; the final 7 days of the 12 day 3rd fractal formed the 7 day initial 1st fractal base of the 4-phase crash decay series: 7/17/18/10 days. A terminal 5 Feb 2026 ACWI 3/6/7/5 day :: x/2x/2-2.5x/1.6x 4-phase growth and decay fractal series contained the ACWI 25 Feb 2026 peak valuation, day 7 of the 3rd fractal. A 7 day first decay fractal was initiated on 23 Feb, formed by the last 3 days of the 7 day 3rd fractal and the 5 days of the 4th fractal: 7/17/18/10 days. Today is day 15 of the 2nd fractal with significant down days on day 16 and day 17.

The Coincidental Iranian War will exacerbate the 1982 to 2026 44 year Deterministic Global Equity Crash: ACWI Peak Valuation Saturation Day: 25 Feb 2026

The effective closure of the Strait of Hormuz affecting 20% of global oil and 20% of global LNG occurred 4 trading days after the 25 February 2026 peak valuation of ACWI, the global equity composite ETF. It is the opinion of this website that asset valuations grow and decay in a time based fractal manner which occur in a deterministic fashion based on 1. for smaller times scales, (minutes, hours, days, weeks, months) saturation buying and selling and on 2. large time scales (quarters, years and decades) the limitations of private debt accumulation, private debt servicing, asset quantities and (overvaluation) prices, and business cycles involving the consumers at pyramid base of the asset debt macroeconomic system. The integrated/summation valuations of all asset classes (including debt) are both interdependent and provide the collective denominator for a particular asset class numerator.

The 3 and 4 phase Lammert fractal growth and decay laws for the asset/debt system are elegantly simple: 1. x/2-2.5x/1.5-2.5x and 2. x/2-2.5x/2-2.5x/1.5-1.6x. The 2-2.5x 2nd fractals of the above two series are characterized by nonlinear lower lows in the 2x-2.5x terminal growth time periods. (see 2005 main page of the Economic Fractalist. A historical nonlinear 2nd fractal crash of the above 1982 13/33 year :: x/2.5x 1st and 2nd fractal series is expected to occur in a fractal manner over the next 8-10 months Fractal decay begins at peak saturation growth. The 27 Oct 2023 to 7 April 2025 fractal valuation growth and decay occurred in a x/2.5x/2.5x 3 phase growth fashion of 55/139/135 days to the 19 Feb 2025 peak valuation and decayed thereafter from that peak in a 5/13/12/8 day :: x/2.5x/2.5x/1.6x 4-phase fractal pattern to a 7 April 2025 nadir.

The above fractal growth and fractal decay is an interpolated fractal series of a larger 27 October 2023 120/243 day :: x/2x 1st and 2nd fractal series with characteristic gapped 2nd fractal lower low non linearity in the terminal 2x-2.5x area (days 240 to 243) with observable non linearity between days 240 and 241 and days 241 and 242).

From the 7 April 2025 nadir, a 3-phase 53/107/65 day :: x/2-2.5x/x + growth series is observable with a 25 Feb 2026 peak valuation. This completes a 3 Phase 27 Oct 2023 120/243/223 day :: X/2-2.5X/2-2.5X' growth series where X' represents the ideal 1st fractal time period of 243 divided by 2.5 or 97 days. A 4 phase fractal decay series of 33-34 days from the ACWI 25 Feb 2026 peak valuation similar to its 19 Feb 2025 peak valuation decay series of 5/13/12/8 days :: x/2.5x/2-2.5x/1.6X ends in its 1st fractal crash nadir. The 25 Feb 2026 peak growth is efficiently contained in a larger 27 Oct 2023 120/243/257 day :: y/2-2.5y/2-2.5y decay fractal series as shown below.

In the above 3rd 223 day 7 April 2025 to 25 Feb 2026 fractal (of the 27 Oct 2023 120/143/223 day 3 phase fractal growth series), a 4 phase decay series occurs from peak 2nd subfractal growth in the 62 day and 47 day respective 107 and 65 day 2nd and 3rd fractal series. See below:

The above Not to (time) Scale 33-34 day 4 phase Decay Fractal series represents the initial 1st fractal crash series of the 1982 to 2026 13/33 year :: 1st and 2nd fractal series which is an interpolated series within a larger US hegemonic 4 phase 1807 36/90/90/ 54-57 year :: x/2.5x/2.5x/1.5-1.6x fractal series with commodity/equity valuation 1st 2nd and 4th fractal nadirs in 1842-43, 1932, and 2074-77 and a 90 year 3rd fractal peak valuation peak in Nov 2021. US 15%,11%, and 5-8% peacetime deficit to GDP annual spending in 2020- 2026 and recent AI private debt investment have propelled global composite equity valuations to a 25 Feb 2026 peak valuation. The Iran war and its ramifications will exacerbate the asset debt system's natural deterministic collapse.