Helioeconomics: Solar Cycles & World Economic Rhythms | Aleksander Valkov

In his groundbreaking and provocative June 2025 working paper, Russian economist Aleksander Valkov, Head of the Department of National and World Economy at Moscow State University, introduces "helioeconomic theory"—a bold interdisciplinary framework asserting that long-term solar activity, specifically the approximately 11-year Schwabe sunspot cycle (measured via Wolf sunspot numbers), serves as a primary exogenous driver synchronizing global economic cycles across centuries and countries. 

HelioEconomic Leading Index (HELI) and Economic Cycles (1750–1900). 

 

HelioEconomic Leading Index (HELI) and Economic Cycles (1900-2050): 

Blue line: HELI Index (normalized, 0–1 scale); Black dashed line: Solar Cycle (Wolf number, 11-year harmonic); Red vertical dashed lines: Economic Peaks (1749, 1801, 1859, 1917, 1968, 2024); Green vertical dashed lines: Economic Bottoms (1775, 1833, 1889, 1944, 1996, 2045); X-axis: Years 1750-1900 and Years 1900-2050, in strict chronological order.

 

HelioEconomic Leading Index (HELI) for USA, Russia, China, and Great Britain (1900-2024).

Blue line: USA; Red line: Rusia; Green line: China; Brown line: Great Britain; Red vertical dashed line: Economic Peak; Green vertical dashed line: Economic Bottom. 

 

Rather than viewing economic expansions and contractions as purely the result of credit, technology, policy, or random shocks, Valkov argues that solar magnetic activity provides the underlying rhythm. He posits that every fifth solar maximum plants the seed for a major economic peak approximately five to ten years later, while solar minima trigger the deepest troughs. This pattern establishes a dominant approximately 55-year supercycle (roughly five Schwabe cycles) that has governed global economic turning points from pre-industrial 1750 through the industrial and modern eras, spanning diverse economies including the USA, UK, Russia, China on a panel of 12 major countries.

 

 

» These findings have important implications for economic theory, forecasting, and policy. «

 Next solar minimum (Cycle 25/26 transition) anticipated around 2030–2031.

 

Valkov posits that solar activity influences economies through several interconnected channels. The first channel involves biophysical and health effects: geomagnetic storms and solar radiation variations are argued to affect human health, melatonin levels, mood, and cognitive function, citing medical literature on increased depression, suicides, and risk aversion during periods of high solar activity. Second, technological disruptions are a growing concern in the modern era, as space weather impacts infrastructure, satellites, and power grids. Third, Valkov includes agricultural and climate channels through subtle influences on weather patterns and crop yields, though he acknowledges this is a weaker driver for the regular 11-year solar cycle. Finally, the psychological and behavioral channel is considered crucial, suggesting that collective mood shifts drive investor sentiment, risk-taking, and economic decisions, a concept that builds on research by Krivelyova and Cesare Robotti (2003) and similar studies. The key innovation of Valkov's work, however, is the proposed 55-year rhythm: every fifth solar maximum (a period of 54–60 years) marks a "super-peak" corresponding to major economic booms and the subsequent crises that occur when the underlying expansion ultimately overshoots.

Valkov's theory builds on earlier ideas from Jevons (1875), Garcia-Mata (1934), and the Foundation for the Study of Cycles, but he elevates them with rigorous modern statistical methods and an extraordinary historical dataset covering twelve major economies, including the United States, United Kingdom, Russia, and China—both before and after industrialization.

 » The HELI index outperforms traditional leading indicators in predicting major economic turning points, offering

policymakers and analysts a new interdisciplinary tool for risk assessment and macroeconomic planning. « 

At the heart of Valkov's paper is the HelioEconomic Leading Index (HELI), a composite indicator that combines smoothed Wolf sunspot numbers (inverted and appropriately lagged) with macroeconomic variables such as unemployment rates, GDP growth, and industrial production. Spectral analysis, Granger causality tests, and principal component methods show that the HELI index explains approximately 78% of the variance in global business-cycle turning points over nearly three centuries—a level of explanatory power rarely achieved by conventional leading indicators. The alignment is striking. Major economic peaks repeatedly occur near every fifth solar maximum (for example, the Roaring Twenties, the mid-1960s–early-1970s boom, and the 2014–2020 expansion), while the deepest depressions and recessions cluster around prolonged solar minima (the 1930s Great Depression, the early 1980s double-dip, and the 2008–2009 Global Financial Crisis all fit the pattern with remarkable precision).

 According to Alexander Chizhevsky (1924) the 11-year solar cycle is historically segmented into four distinct periods
based on psychological excitability: Minimum (3 years), Growth (2 years), Maximum (3 years), and Decline (3 years).

Valkov's long-term charts overlaying sunspot numbers with unemployment or industrial production in the US, UK, Russia, and China reveal an almost eerie synchronization that persists through wars, pandemics, gold standards, fiat currencies, and radically different political systems. Given that Solar Cycle 25 reached a stronger-than-expected maximum around 2024–2025, the HELI index indicates that the current global expansion has already peaked or is in its final stage.

  

» On average, the difference between the peaks and troughs of solar activity and economic cycles does not exceed six months. «

88% of recessions since the 1800s and 100% of major financial crises occurred during the downturn of sunspot cycles. 

Leonty Miroshnichenko, 2023.

The model forecasts an accelerating contraction phase leading into a major multicycle trough centered on the early 2030s—precisely the period when the next solar minimum is expected. Mainstream macroeconomics remains deeply skeptical of any strong exogenous pacemaker for business cycles, and critics will rightly point to risks of overfitting and the indirect nature of causal mechanisms. Yet, the sheer scope of the evidence—280 years, twelve diverse economies, consistent performance across radically different institutional regimes—makes the paper impossible to dismiss lightly. Whether helioeconomics ultimately gains broad acceptance or remains a heterodox curiosity, the HELI index has already demonstrated superior long-range forecasting ability compared with traditional indicators. 

Reference:
Aleksander Valkov (June 2025) - Helioeconomics: Solar Cycles as the Hidden Pacemaker of Global Economic Fluctuations.

See also:

Vladimir Belkin (2024)  - Economic Crises and Solar Activity Extrema: Calculation of the Fall in the World GDP Growth in 2025. 

Vladimir Belkin (2024) - Strong Inverse Correlation between Ap Index and Gold Price. 

Vladimir Belkin (2024) - 2025-2027 Oil Price Decline Linked to Solar Cycle Activity. 

Leonty Miroshnichenko (2023) - Kondratiev Waves Aligned with Solar Cycles. 

 Lifang Peng, Ning Li, Jingwen Pan (2019) - Effect of Ap Index of Geomagnetic Activity on S&P 500 Stock Market Return.

Bojan S. Dimitrijević et al. (2016) - Sunspots and Stock Markets: Evidence of their Interdependence in Transition Countries. 

Mikhail Gorbanev (2016) - Solar Activity and Economic Recessions.

Mikhail Gorbanev (2012) - Sunspots, Unemployment, and Recessions: Can the Solar Activity Cycle shape the Business Cycle?

Anna Krivelyova and Cesare Robotti (2003) - Playing the Field: Geomagnetic Storms and the Stock Market.

Carlos Garcia-Mata & Felix Ira Shaffner (1934) - Solar and Economic Relationships: A Preliminary Report. 

 Alexander Chizhevsky (1924) - The Physical Factors of the Historical Process.

Gold Production Mirrors the Long Wave, It Doesn’t Drive It | Nikolai Kondratieff

As regards the opening-up of new countries for the world economy, it seems to be quite obvious that this cannot be considered an outside factor which will satisfactorily explain the origin of long waves. The United States have been known for a relatively very long time; for some reason or other they begin to be entangled in the world economy on a major scale only from the middle of the nineteenth century. Likewise, the Argentine and Canada, Australia and New Zealand, were discovered long before the end of the nineteenth century, although they begin to be entwined in the world economy to a significant extent only with the coming of the 1890’s. 

 

» We know that commodity prices reach their lowest level toward the end of a long wave. This means

that at this time gold has its highest purchasing power, and gold production becomes most favorable. «
Second Transvaal Gold Rush: Miners of the Republic Gold Mining Company,

De Kaap Valley, Eastern Transvaal gold fields, South Africa, 1888.

 

It is perfectly clear historically that, in the capitalistic economic system, new regions are opened for commerce during those periods in which the desire of old countries for new markets and new sources of raw materials becomes more urgent than theretofore. It is equally apparent that the limits of this expansion of the world economy are determined by the degree of this urgency. If this be true, then the opening of new countries does not provoke the upswing of a long wave. On the contrary, a new upswing makes the exploitation of new countries, new markets, and new sources of raw materials necessary and possible, in that it accelerates the pace of capitalistic economic development.

There remains the question whether the discovery of new gold mines, the increase in gold production, and a consequent increase in the gold stock can be regarded as a casual, outside factor causing the long waves. An increase in gold production leads ultimately to a rise in prices and to a quickening in the tempo of economic life. But this does not mean that the changes in gold production are of a casual, outside character and that the waves in prices and in economic life are likewise caused by chance. We consider this to be not only unproved but positively wrong. 

 

 » An increase in gold production leads ultimately to a rise in prices. «

California Gold Rush (1848–1855): Over 300,000 settlers flooded newly conquered Mexican

territory, seizing lands of 70 indigenous peoples and carrying out the California Genocide.

 

This contention originates from the belief, first, that the discovery of gold mines and the perfection of the technique of gold production are accidental and, secondly, that every discovery of new gold mines and of technical inventions in the sphere of gold production brings about an increase in the latter. However great may be the creative element in these technical inventions and the significance of chance in these discoveries, yet they are not entirely accidental. Still less accidental—and this is the main point—are the fluctuations in gold production itself. 

 

These fluctuations are by no means simply a function of the activity of inventors and of the discoveries of new gold mines. On the contrary, the intensity of inventors’ and explorers’ activity and the application of technical improvement in the sphere of gold production, as well as the resulting increase of the latter, depend upon other, more general causes. The dependence of gold production upon technical inventions and discoveries of new gold mines is only secondary and derived.

» Although gold is a generally recognized embodiment of value, it is only a commodity. «
Grasberg Mine, operated by PT Freeport Indonesia, is one of the largest global gold

and copper reserves, producing 1.7M oz gold, 6M oz silver, and 1.5B lbs copper in 2023.

 

Although gold is a generally recognized embodiment of value and, therefore, is generally desired, it is only a commodity. And like every commodity it has a cost of production. But if this be true, then gold production—even in newly discovered mines—can increase significantly only if it becomes more profitable, i.e., if the relation of the value of the gold itself to its cost of production (and this is ultimately the prices of other commodities) becomes more favorable. If this relation is unfavorable, even gold mines the richness of which is by no means yet exhausted may be shut down; if it is favorable, on the other hand, even relatively poor mines will be exploited.

When is the relation of the value of gold to that of other commodities most favorable for gold production? We know that commodity prices reach their lowest level toward the end of a long wave. This means that at this time gold has its highest purchasing power, and gold production becomes most favorable. This can be illustrated by the figures in Table 2.

Table 2.— Selected Statistics of Gold Mining in the Transvaal, 1890–1913.

Gold production, as can be seen from these figures, becomes more profitable as we approach a low point in the price level and a high point in the purchasing power of gold (1895 and the following years). It is clear, furthermore, that the stimulus to increased gold production necessarily becomes stronger the further a long wave declines. We, therefore, can suppose theoretically that gold production must in general increase most markedly when the wave falls most sharply, and vice versa.

» Gold production must in general increase most markedly when the wave falls most sharply, and vice versa. «

Wangu Gold Deposit, 2024: China discovered one of the world’s largest gold deposit

in Hunan, with over 1,000 tons valued at $83B, located 19 kilometers underground.

 

In reality, however, the connection is not as simple as this but becomes more complicated, mainly just because of the effect of the changes in the technique of gold production and the discovery of new mines. It seems to us, indeed, that even improvements in technique and new gold discoveries obey the same fundamental law as does gold production itself, with more or less regularity in timing. Improvements in the technique of gold production and the discovery of new gold mines actually do bring about a lowering in the cost of production of gold; they influence the relation of these costs to the value of gold, and consequently the extent of gold production. 

 

» Improvements in the technique of gold production actually do bring about a lowering in the cost of production of gold. «

Kumtor Gold Mine, Kyrgyzstan, 2025: Nationalized in 2021, one of Central Asia’s largest gold reserves, 

began underground mining, projected to add 147 metric tons of gold to state reserves over 17 years.

 

But then it is obvious that exactly at the time when the relation of the value of gold to its cost becomes more unfavorable than theretofore, the need for technical improvements in gold mining and for the discovery of new mines necessarily becomes more urgent and thus stimulates research in this field. 

 

» Gold production is subordinate to the rhythm of the long waves. «

Muruntau Gold Mine, Uzbekistan, 2025: Holds the world’s largest gold reserves, one of the largest open-pit

gold mines, ranks second in global production, producing 2M+ oz annually, expected to operate for decades.

 

There is, of course, a time-lag, until this urgent necessity, though already recognized, leads to positive success. In reality, therefore, gold discoveries and technical improvements in gold mining will reach their peak only when the long wave has already passed its peak, i.e., perhaps in the middle of the downswing. The available facts confirm this supposition. In the period after the 1870’s, the following gold discoveries were made: 1881 in Alaska, 1884 in the Transvaal, 1887 in West Australia, 1890 in Colorado, 1894 in Mexico, 1896 in the Klondike. The inventions in the field of gold-mining technique, and especially the most important ones of this period (the inventions for the treatment of ore), were also made during the 1880’s, as is well known.

» The increase in gold production takes place somewhat earlier than at the end of the downswing of the long wave. «

Lafigue Gold Mine, Ivory Coast, began production in August 2024, targeting 200,000 oz gold annually over 13+ years.

  

Gold discoveries and technical improvements, if they occur, will naturally influence gold production. They can have the effect that the increase in gold production takes place somewhat earlier than at the end of the downswing of the long wave. They also can assist the expansion of gold production, once that limit is reached. This is precisely what happens in reality. Especially after the decline in the 1870’s, a persistent, though admittedly slender, increase in gold production begins about the year 1883, whereas, in spite of the disturbing influences of discoveries and inventions, the upswing really begins only after gold has reached its greatest purchasing power; and the increased production is due not only to the newly discovered gold fields but in a considerable degree also to the old ones. This is illustrated by the figures in Table 3.

Table 3.— Gold Production, 1890–1900 (Unit: thousand ounces).

From the foregoing one may conclude, it seems to us, that gold production, even though its increase can be a condition for an advance in commodity prices and for a general upswing in economic activity, is yet subordinate to the rhythm of the long waves and consequently cannot be regarded as a causal and random factor that brings about these movements from the outside.

 

Quoted from:
Nikolai Kondratieff (1926)  - The Long Waves in Economic Life.

 

 

See also: 

Ahmed Farghaly (October 6, 2025) - High Inflation: We are in Kondratieff's "Summer of Summer". 

 

 » Since the Kondratieff wave was not a transverse wave, meaning the wavelength varied, this tends to imply we may see the “real” high in commodity prices (adjusted for inflation) form in line with the ECM in 2032. This is by no means a straight, linear progression. There will be booms and busts along the way. Therefore, that is when we will see the final REAL high in gold, agriculturals, metals, etc. «   Martin Armstrong, March 16, 2013.

  There is NO STORE OF VALUE because everything rises and falls.

High Inflation: We are in Kondratieff's "Summer of Summer" | Ahmed Farghaly

Many people are wondering what has been happening to the prices of gold and silver recently. We were expecting developments similar to those that occurred after the 2020 bottom of the Kuznets wave [aka the 18-Year Cycle] in global markets. The first chart below presents our cyclical analysis of the Commodity Price Index.

 

 » We are in the “summer of summer.” «

 Commodity Price Index (quarterly bars, log scale) from 1750 to 2025: 162-Year, 54-Year, 18-Year, and 9-Year cycles. 

[Note, there is ongoing debate regarding the precise starting points of the 162-year and 54-year cycles.
It can be argued that both should be anchored to the Great Depression low of 1932, rather than to 1949-50.]

It is evident that the 54-Year Kondratieff wave, first identified by Nikolai Kondratieff, is clearly reflected in this historical chart. Even more intriguing is the apparent presence of a 162-Year larger-degree Kondratieff wave that maintains the same 3:1 harmonic relationship to the Kondratieff wave as the Kondratieff wave does to its smaller counterpart, the 18-Year Kuznets wave. In our cyclical model, the cycle spanning three Kondratieff Waves is called the Hegemony wave.
 

972-Year Methuselah Wave = three 324-Year Enoch Waves

Enoch Wave = two 162-Year Hegemony Waves 

Hegemony Wave (156.88 y) = three 54-Year Kondratieff Waves

Kondratieff Wave (52.72 y) = three 18-Year Kuznets Waves

Kuznets Wave 17.52 y) = two 9-Year Juglar Waves 

Juglar Wave (8.76 y) = two 54-Month Kitchin Cycles 

Kitchin Cycle = three 18-Month cycles = six 40-Week cycles

Many economists have described the “seasons” of the Kondratieff wave—spring (stable growth), summer (high inflation), autumn (low inflation and asset bubbles), and winter (deflationary recession). Typically, spring coincides with the first Kuznets cycle, summer with the second, and autumn and winter with the third. The highest inflation rates within a Kondratieff wave occur during the summer phase, corresponding to the second Kuznets cycle, which began in 2020.

 

» To every thing there is a season, and a time to every purpose under the heaven. «
Ecclesiastes 3:1.

We are currently in the second Kuznets cycle (2020 to late 2030ies) of the second Kondratieff cycle (2000 to 2050) within the ongoing Hegemony wave (1950 to 2100)—a phase that can be described as the “summer of summer.” This phase suggests that we are likely to experience the highest inflation levels since the American Civil War (1861–1865).

» We are likely to experience the highest inflation levels since the American Civil War. «

US Inflation: Annual Percentage Change from 1774 to 2007, with Outlook Extending to 2106.

  

Our next chart above illustrates annual inflation in the United States since 1777. A distinct 162-Year Hegemony wave pattern emerges, with an inflation peak in 1813 marking the summer of the first Kondratieff cycle, a higher peak in 1865 corresponding to the summer of the second Kondratieff cycle, and a lower peak during World War I representing the summer of the third Kondratieff cycle. A comparable peak reappeared in 1980. According to our cyclical outlook, inflation in the current Kondratieff cycle is expected to surpass the levels of the 1970s, as this phase represents the second Kondratieff cycle within the broader Hegemony wave—the “summer season.”

The most advantageous assets to hold at this stage of the cycle—both from the standpoint of the Hegemony wave and the Kondratieff summer—are precious metals, real estate, and equities that tend to benefit from periods of high inflation.

Quoted from:
Ahmed Farghaly (October 6, 2025) - High Inflation: We are in Kondratieff's "Summer of Summer". 

 

 The Ultimate Summer:

972-Year, 324-Year, and 162-Year cycles.

» We are in the Sixth Wave that peaks
on Sunday, December 12, 2032. «

 

» Yet, what experience and history teach us is this: that nations and governments have never
learned anything from history, nor acted in accordance with the lessons to be derived from it. «
Georg Wilhelm Friedrich Hegel, Introduction to Lectures on the Philosophy of History, Berlin, 1822.

 

See also:

Ahmed Farghaly (2016) - The 162-Year Cycle in Stocks and Commodities Since 1509.

On the Political Influence of the Sun | Boris Groys

During the period of modernity we got accustomed to the understanding of the human beings as determined by the social milieu in which they live, as knots in the informational networks, as organisms depending on their environment. In the times of globalization we learned that we are dependent on everything that happens around the globe – politically, economically, ecologically. But the Earth is not isolated in Cosmos. It depends on the processes that take place in the cosmic space – on black matter, waves and particles, star explosions and galactic collapses. And the fate of mankind also depends on these cosmic processes because all these cosmic waves and particles go through the human bodies. The positioning of the Earth in the cosmic whole determines the conditions under which the living organisms can survive on its surface.

Georges Batailles (1897-1962): "Solar radiation results in a superabundance of energy on the surface of the globe. But, first, living matter receives this energy and accumulates it within the limits given by the space that is available to it. It then radiates or squanders it, but before devoting an appreciable share to this radiation it makes maximum use of it for growth.Only the impossibility of continuing growth makes way for squander. Hence the real excess does not  begin until the growth of the individual or group has reached its limits."(HERE)

This dependence of the mankind on the cosmic events that are uncontrollable and even unknown is the source of the specifically modern anxiety. One can say: Cosmic anxiety. The anxiety of being a part of Cosmos – and not able to control it. Not accidentally our contemporary mass culture is so much obsessed with the visions of asteroids coming form the black cosmic space and destroying the Earth. But this anxiety has also more subtle forms. As an example one can cite the theory of the ‘accursed share” that was developed by Georges Bataille. According to this theory, the Sun always sends more energy to the Earth than the Earth, including the organisms living on its surface, can absorb. After all the efforts to use this energy for production of goods and raising the living standard of the population there also remains a non-absorbed, non-used rest of the solar energy. This rest of energy is necessarily destructive – it can be spent only through violence and war. Or, at least, through ecstatic festivals and sexual orgies that channel and absorb this rest of energy through the less dangerous activities. Thus, human culture and politics become also determined by the cosmic energies – forever shifting between order and disorder.

 

Now, Bataille’s solar myth reminds one strongly of the interpretation of the world history as defined by the activity of the Sun – interpretation that was formulated by Russian historian and biologist Alexander Chizhevsky in the 1920s and 1930s. During this period of time Chizhevsky’s ideas spread also to the West, especially to France and the USA, and some of his texts were published in French and English – so that his ideas could reach Bataille (for example A. L. Chizhevsky (1938): Les Épidémies et les perturbations electromagnetiques; Paris, Hippocrate). However, the main text written by Chizhevsky in which his theory is extensively formulated and proved by empirical data was published only relatively recently in Russian. Chizhevsky collected a huge empirical data – from the Roman and early Chinese sources up to the 1930s – to show the close correlation between the periods of the higher activity of the Sun and mass revolutionary movements. It is, of course, the Russian revolution in 1917 that gave the decisive impulse to his research. Chizhevsky asks: why under similar social, economic and political constellations in some cases masses become mobilized and revolutionized but in other cases they remain passive and indifferent. The answer that Chizhevsky offers is this: to be able to start a revolutionary movement the human beings should be mobilized not only on the level of the spirit but also on the level of the body. The human spirit can be mobilized through an ideology but, according to Chizhevsky the degree of mobilization of the human body, like of all the organisms living on the Earth, is dependent on the cycles of solar activity. 

 

Chizhevsky collected an incredible amount of astronomical and historical data to show the correlation between activity of the Sun and activity of revolutionary movements. As he shows the greatest revolutions coincided with the greatest activity of the Sun – and the historical process is characterized by a succession of active and passive periods corresponding to the 11 years cycles of solar activity (the highest degree of activity follows the 22 years cycle). But it seems to me that for our time the most interesting part of his results concerns the relationship between activity of the Sun and English parliamentary election. These results show that the influence of the Sun dictates not only the choice between revolution and status quo but also between leftwing and rightwing politics in the framework of regular parliamentary processes. Thus, Chizhevsky shows that for the period between 1830 and 1924 the summary activity of Sun during the rule of liberal governments was 155,6% higher than during the rule of conservative governments. The conservative governments never had power when the number of sunspots was over 93. The moments of change in the solar activity are almost precisely correlated to the changes of the English governments.

At the end of his text Chizhevsky suggests that the knowledge of the correlation between activity of the Sun and political activity of the masses can prepare the political classes to the seemingly unexpected changes of the public mood. During the financial crisis in the year 2009 some specialist remembered the so-called Kondratiev waves – Nikolai Kondratiev, a student of Chizhevsky, applied his theory on the economic cycles and predicted all of them including the 2009 crisis. On the political level one is reminded of the years 1968, 1989 and, again, 2010-11. Here it is interesting to mention that the present time is the time of the weakest solar activity since the 20th century – the period of political indifference and passivity of the masses. However, the political effects of the bigger numbers of sunspots are often ambiguous. Chizhevsky specifically warns that the growth of solar activity can lead not only to the adoption of progressive agenda by the masses but also to the rise of irrational and reactionary populist movements.

 

Quoted from:

Boris Groys (2017) - On the Political Influence of the Sun. 

 

Reference:

Georges Bataille (1949) - The Accursed Share: An Essay on General Economy. 

Alexander Chizhevsky (1924) - Physical Factors of the Historical Process.

Alexander Chizhevsky (1938) - Les Epidemies et les perturbations electro-magnetiques du milieu exterieur.

Nikolai Kondratieff (1925) - The Major Economic Cycles.