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Esoteric Principles of Long Wave Theory

Esoteric is defined as special and private knowledge meant to be shared with a select few who have a special interest. However certain principles are so important they should be exoteric, meaning they reflect true the external reality that can be ascertained by anyone with an open mind.

Our objective here is to share in an exoteric format some of the more important esoteric principles relating to the effect that the universal laws of nature have upon the capital markets. This will enable our readers to better appreciate and understand the Kondratieff Wave.

The Kondratieff Wave principle is rooted in the natural laws of the universe. Sadly, many observers and market participants are only concerned with purely scientific applications in their analysis of capital markets or national and global economies. Most are unable to fathom the implications set forth in long wave theory because they reject the factors listed below as irrelevant because they are unseen and can’t be precisely measured. Yet the content in this section will establish these themes and provide our readers with a richer grasp of their profound nature. These notions include, among others that:

  • Economies and markets can be thought to be of as natural organisms and thus susceptible to the rhythms of nature just as humans;
  • Economies and markets move in natural cycles that are based upon harmonic ratios that can be reasonable measured and predicted;
  • Economies and markets are destined to repeat their history just as humans;
  • Economies and markets can be thought of as energetic beings susceptible to the laws of electromagnetism;
  • Economies and markets have biological properties much like human ecosystems;
  • Economies and markets behave in the classic chaos theory model.

Unfortunately, the Western world has embraced little or none of the esoteric material provided on this site. I believe much of this content, especially regarding sacred geometry, should be taught early in our schools so our children can understand how our world and universe really work. These cycle patterns have great meaning for all humans because they mark the progression of our evolution within the ebb and flow inherent in all of nature.

Everyone, including disbelievers, is invited to peruse the articles below and decide for themselves. They were selected because they offered a cogent response to many of the baffling paradoxes evident for many years.

1. MUST READ Sacred Geometry Explained – Historical and Mathematical Background of the Wave Principle

The following chapter is from Robert Prechter’s book Elliott Wave Principle and gives perhaps the finest account of the nature of sacred geometry I’ve ever seen. It is crucial to understand all about sacred geometry because it is the best tool for understanding the mathematical relationships connecting everything in the universe. Understanding sacred geometry allows one to better appreciate the patterns of nature all around us and better able to forecast the future of the capital markets. Sacred geometry is the very foundation of the Kondratieff Wave and the Elliott Wave theories.

In a mere eleven pages Prechter traces the roots of sacred geometry through the greatest mathematician and intellectual genius you have probably never heard of- Leonardo Fibonacci. He founded some of greatest mathematical discoveries of all time yet is hardly known today. Among his contributions are the decimal system, the golden ratio (phi) and the Fibonacci sequence. Until his discovery of the decimal system in the thirteenth century, merchants had great difficulty in calculating transactions within the Roman numeral system and his decimal system enabled greater commerce to be transacted. We take this for granted today but it was a great innovation in the Middle Ages.

His magnum opus Liber Abacci was first published in the early thirteenth century and it provided the methodology and significance inherent in sacred geometry. The Fibonacci sequence measures the naturally recurring patterns of expansion and contraction of growth throughout the universe. The golden ratio measures the ideal proportional relationships with everything in the universe from our human bodies to the buildings we construct. Wave structures of all kinds can be measured and interpreted using this knowledge, and Prechter goes on to articulate how this sacred geometry is the prevailing force underlying his approach to measuring wave formations over time. The stock market is the single greatest measure of sacred geometry to be found anywhere because the wave patterns are the result of literally trillions of human decisions that have been made over many years.

Aside from providing a mathematical tool to forecast the capital markets, sacred geometry also provides a wonderful glimpse into the symmetry, lawfulness, and oneness within the universe. This brief material is a must read for everyone!

2. MUST READ The Ultimate Secrets of the Mayan Calendar

This article by David Wilcock can be found at, one of my favorite sources for esoteric knowledge. It cites the groundbreaking research done by Dr. S.V. Smelyakov in the study of cosmic influences on the consciousness of humanity. These influences are of profound significance in the understanding of how the collective consciousness of market participants behave and impact the performance of economies and markets worldwide. After all, each market is the sum total of millions of decisions made by its participants. Since these decisions are in large part influenced by human emotions, it stands to reason that anything in the aggregate that affects these emotions would impact its direction. This is why it is so important to understand the cyclical nature of economies and markets.

The “ultimate secret” of the Mayan Calendar is the premise that every aspect of our entire earthly world is affected by the cosmic cycles of the universe, including and especially the ebb and flow of human emotion as seen in financial market activities. This is the real hidden message of the Kondratieff Wave- that these cycles are so pervasive in nature they are certain to repeat in specific patterns. Just like changing population levels, weather patterns, and other natural forces, they are sure to repeat their cycles over time. The hidden order of sacred geometry serves to balance the forces of expansion and contraction. Read on to discover an advanced discourse in quantum metaphysics and how the cycles of time are in fact contracting further each year through the exponentially imploding cycle of time based on the golden ratio-phi.

The appendix midway through the article traces the historical epoch clusters of the Auric Cycles of the Mayan calendar. In recent times it resembles the first chart of the Kondratieff Cycle displayed in our Kondratieff Wave section. Read on to find the fascinating revelations made by Dr. Smelyakov’s research. I believe comrade Kondratieff would be proud of his countryman.

3. MUST READ The Final Mayan Calendar Steps to 2012: Nov 8, 2009 the Beginning of the Sixth Night

In an article just released days ago, Dr. Carl Calleman expands upon his previous article outlining the implications for the financial markets as we enter the Sixth Night of the Galactic Wave Movement. (This was posted in our KW Survival Guide Section several months ago.) This piece is a remarkable look at the correlation between the performance of the stock market and the evolution of human consciousness. Dr. Calleman provides more background on the progression of the Sixth Night and its characteristics and likens this particular night cycle period to the one preceding the Renaissance and expects a more profound transformation will emerge following this difficult night period.

He also suggested that a key turning point in the acceleration of human consciousness could even occur during the night phase shortly after the Cosmic Convergence on July 17th of 2010. According to the Mayan prophecy as interpreted by Calleman, this period will mark the single greatest leap in human evolution in world history. He goes on to reflect deep regret that the soon to be released movie 2012 is based on the singular event of December 21, 2012 that lends itself to sensationalized speculation about doomsday prophecies. This approach only serves to promote fear and is far from the “higher truth” underlying the Mayan calendar.

4. MUST READ Extropy: An increase in Complexity

Given the maddening, white knuckle ride in the markets of late I decided to include this piece on extropy so our readers can get more acquainted with the level of change that we are witnessing on a daily basis. The Dow saw a range of 2000 points in one week (September 15-19th) that was the highest ever on record. As we enter the Kondratieff Winter we can expect more of the same, and the attached material on extropy accounts for part of that volatility. Simply put, the pace of change is increasing at a geometric rate and has been increasing for years. This increase is universal in nature and not limited to capital markets as the evidence will show. The bottom line is that we all need to accept and understand this trend so we can adapt to the changing times. This means not being married to any stock or sector for the long term so that we aren’t to set in our beliefs because we must all strive for optimal flexibility. (Posted September 20, 2008)

5. MUST READ Sunspot Cycles and Human History

This excerpt is from a book written in 2002 by Michael Mandeville called The Coming Economic Collapse of 2006. It recounts the observations made by a Russian astronomer A.L. Tchijevsky during World War I suggesting that severe battles followed intense solar activity. He created an “Index of Mass Human Excitablility” by compling data from 72 countries from 500BC to 1922 AD and found that 80% of the most significant human events, mostly related to war and violence, came within a few years of maximun sunspot activity.

The data and observations make a solid case that the solar cycle does indeed have an impact on human behavior as reflected in areas such as the weather, wars, economic activity, and other non-human phenomenon. Chart 103 is especially helpful in understanding their impact on major recessions and depressions. It shows that during a sunspot peak, a speculative Bull Run bubble breaks down and is followed by a major recession or Depression. His mention in 2002 of a jobless economic recovery of recent times amidst massive subsidy stimulation was spot on.

6. Creative Destruction

Posted on this blog considers the virtues of “creative destruction” exhibited by the ancient Aztecs every 52 years in their ritualistic Tying up the Years ceremony. Much like the Mayans, they were able to use their supreme knowledge of mathematics and astrology to track the super-cycles evident in nature to mitigate their effects and thus emerge from climate cycle bottoms in better condition than otherwise. They knew that the cycle of destruction and renewal was inevitable and calculated the 52 year period, remarkably similar to the Kondratieff cycle, based on an integration of the solar, celestial and human gestation cycles.

It suggests that given we are in the late stages of the Kondratieff cycle that we could also benefit through managing our own “creative destruction” to cope with the new realities of a Kondratieff Winter. I proposed this very notion in he November 6th commentary in the Blog section by proposing that the Fed should have instead held rates steady to use the ensuing destruction to carve away the excesses most needing to be removed from the system.

7. The Black Swan columnist John Mauldin provides a splendid insight into the concept of the “black swan” that we cannot or refuse to see. Its thesis offers that our world is really governed by the unknown and the extreme yet we are steadfast in our desire to analyze and consider only that which falls within the curve of our expectations of what is known and has happened. Furthermore, it reminds us, the paradigm shift rate is doubling each twenty-five years making it ever more difficult to forecast or rationalize within the current spectrum since more and more change is packed in a smaller time frame. Under this scenario, it seems more likely for unprecedented events to occur. Call it the curse of Moore ’s Law if you wish. Pretty powerful stuff here, and instinctively it sure seems right on.

8. Edward Dewey

Below we are featuring three articles relating to Edward Dewey, a pioneer in cycle theory. Dewey’s findings came about as the result of his appointment by President Hoover as the chief economist with the US Department of Commerce as he was charged with finding out what had caused the market
crash that began in 1929. His findings were published in several books, most
notably Cycles: The Science of Prediction, and the Mysterious Forces that
Trigger Events.

The first article here is a brief summation from the Cycles Research Institute and
highlights some of the empirical laws of cycles proposed by Dewey.
The second article below is a book review of Cycles: The Science of Prediction
done by Time Magazine in 1947. I found it surprising that they gave credence
over sixty years ago to the notion that economic cycles and industrial
production were governed by natural cycles controlled by mysterious agencies,
as they claimed that long ago. It introduces Dewey’s claim that there are four
basic cycles that govern economic activity with the 54 year Kondratieff cycle
being the longest. The third one is also from the Cycles Research Institute and
is written by Dewey himself in 1951. Although simplistic in its approach, it
provides an introduction to cycles and more support for the four basic cycles
promulgated in his books.

I believe it is essential for us to understand about all cycles of economic activity
to better grasp the how the long wave Kondratieff cycle fits in to the model, and
Dewey’s material adds to the picture. Since the material offered here is only an
Overview, please read either of the books mentioned above to get the full picture.