MMA Comments for the Week Beginning July 18, 2011
Written by Raymond Merriman
This week's headlines (www.cnbc.com) sent chills to stock markets throughout the world: "Ratings agencies Moody's and Standard & Poor's have signaled they may cut the gold-plated U.S. credit rating if the borrowing limit is not raised and bills are not paid." It is a classic manifestation of Pluto in Capricorn still being besieged by Uranus and Saturn. It is classic example of the type of economic and political woes that leading nations of the world encounter during the waning phase of the Saturn-Pluto cycle (2001-2020). It is the type of economic climate that leads investors to run away from stocks and into commodities like Gold and Silver.
As you might expect from those headlines, stocks fell across the globe last week, while Gold, Silver, and Crude Oil rallied. In fact, Gold made another new all-time high last week. Which makes you wonder why Fed Chairman Ben Bernanke, in his testimony before Congress this week, said "No," when asked by Congressman Ron Paul, "Is Gold money?" If you think Gold is not money check out what places like Amsterdam Gold and Credit Suisse are now doing. Gold IS becoming real money again.
I am worried. Of course, being a Capricorn, I amsupposed to be worried about something all the time. But here we are on the precipice of another Financial Armageddon, and the picture in the heavens look, well… worrisome.
As the due date for the USA debt ceiling limit looms ahead in just two weeks, we are marching right into a geocosmic time band that suggests the possibility of chaos and hysteria. I say "possibility" because I am a great believer that the outcome of almost anything has as much to do with choices to be made as it does with the position of planets relative to one another and the Earth, which I consider to be "God's handwriting on the walls of the universe." So what does the letter say to a Financial Astrologer? What is the message from the cosmos?
The first message has to do with heliocentric Mercury entering Sagittarius, July 19-31. Mercury has to do with communications. Sagittarius has to do with expansion, exaggeration, excess, and over-reaching. Does this describe the words we hear on the news every day now? Sure, Sagittarius can also be hopeful, and one needs hope to in order to experience a state of happiness and joy. That's why Sagittarius is usually such a "fun" sign to experience. We go out, socialize, spend a lot of money, drink … and then comes the next day's hangover. It's the movement of Sagittarius (indulgence) to Capricorn (sobriety and withdrawal). Traders like Sagittarius because it also correlates with large price moves, especially in commodities like Gold and Silver. But what causes the big price moves in commodities? Usually an exaggeration of something that is not quite right in the world, like an impending default on your credit. Thus everyday in which an agreement on the debt ceiling limit is not forthcoming, the hysteria will likely increase, reflected proportionately in the size of the moves up in commodities and down in equities. Of course, there is the possibility that an agreement could be made, in which case the opposite happens in large price swings: stocks go sharply up and commodities come sharply down. There is a lot of money to be made now, but only if your timing is stellar.
But let's assume an agreement is not forthcoming by July 31. The next aspect is the Sun in the proud (and sometimes arrogant) sign of Leo, square Jupiter (exaggeration again) in Taurus, the money sign. Whatever concerns were present on July 31 are doubled on August 1: joy or hysteria? But then on August 2, the "due date," Mercury starts its retrograde motion, which lasts through August 26. That is a time to pause, reflect, research, and discuss options so that you fully understand what you are doing. If decisions are made under Mercury retrograde, it is not long before they have to be modified under the excuse that ""We didn't understand – we weren't properly informed of - what was involved!"
And from there it doesn't easier. On August 9, Mars will first square Uranus, and then the next day it will be in opposition to Pluto. That is, the god of war mates with the gods of chaos and destruction. Hopefully they will produce a child of renewal and not a pile of ashes... as in the potential form taken on by paper currencies and treasuries if a solution to the debt ceiling is not achieved. But ever the optimist (yes, I am a different kind of Capricorn), there will likely be a resolution, albeit temporary, within two weeks of this time.
Longer Term Thoughts and Personal Astrology Transit Tales
It is like people from two different planets talking at each other in different languages. I am of course referring to the impasse between Republicans and Democrats, Congress and the White House, over raising the debt ceiling limit, thus flirting with the prospect of a USA default.
From the viewpoint of Financial Astrology, this is a classic illustration of how the Uranus-in Aries, square Pluto-in-Capricorn can manifest. The Pluto in Capricorn (2008-2023) passage brings to the table the urge to transform-reform government structures. It can easily spill over into banking and big business too, especially as all three are so closely intertwined with one another in the United States (and of course, other nations as well). Specifically, Pluto pertains to debt, deficits, and taxes. The urge for government reform is centered on these issues and policies.
Uranus in Aries (2010-2018) refers to the divisive rhetoric being hurled by leaders of both parties at one another, and the inability or unwillingness to listen empathically. This can be a ruthless and warlike combination, where one side abruptly gets up and leaves the table of discussion. Republican Eric Cantor did that a couple of weeks ago, and Democratic President Obama did it this week. Each side is frustrated with the other, which is a characteristic of the square aspect between these two planetary powerhouses.
The President accuses the Republicans of not being serious. "Show me a plan in terms of what you're doing in terms of debt and deficit reduction. If they show me a serious plan I'm ready to move even if it requires me to make some tough decisions," he says, according to www.cnbc.com. House Speaker John Boehner says Obama and Democrats had still not put a serious deficit plan on the table… "They've been unwilling to put a real plan on the table. Without serious spending cuts...this problem is not going to be solved." Did I say they were from different planets? This is what happens when Uranus is strong in the heavens. Uranus is not a dynamic of "connection." It has more to do with "disconnection."
Everyone thinks lawmakers and the White House will come to an agreement in time. I am sure they will come to an agreement, but I am not so sure it will happen before the August 2 deadline. I am more inclined to think it will happen after Mars enters the emotional sign of Cancer (August 3), and quite possibly while it translates in a grand square to the forceful set up involving Uranus, Pluto, and Saturn (August 9-25). Since the USA is a Cancer country (born July 2 or 4, 1776), and since all of its benefics (Venus, Jupiter and the Sun) are in the degrees of Cancer, they will be hit by Mars during this period. This crisis may then peak. However, with Mars, it is nearly inevitable that the agreement will not make anyone happy for long. During this same time, Mercury will be retrograde (August 2-26). Whatever decision is made is probably not a long-term solution, and the issue will come up again.
Well, the diagnosis of the problem is not hard to make based on principles of Financial Astrology. In fact, the diagnosis (forecast) of debt and financial crisis had been outlined for 2008-2015 in every annual Forecast Book written since 1994, far before anyone in other fields had made such a forecast. The solution had also been proposed – based on the history and themes of planetary cycles that are repeating in 2008-2015. Namely, the cause would be related to overspending and increased deficits on the part of world governments, combined with increased borrowing needs and increased taxes (we already know that over $1 trillion in new taxes will take effect in January 2013). The solution, based on prior periods similar to this, would be two-fold: to institute policies that would increase employment (and hence tax receipts) and decrease spending.
The difficulty between the two sides from different planets can be narrowed down to one basic issue: taxes. Does an increase in tax rates result in the creation of more revenues for the government and hence reduction of debt, as many Democrats and Obama believe? Or do they result in less money available for spending by consumers, which results in less demand for goods and services, which results in less new hiring, a sluggish economy and eventually less overall revenues (taxes) for the government, as Republicans believe? Apparently, on Venus it is one way, on Mars it is the other. And neither side really understands the belief of the other. It's become emotional, not reasonable. Reason and history have no standing on this planet of Uranus. Progress into the future, at any cost, does.
In the process of their inability to resolve the issue, the world heads closer and closer to the consequences of this huge debt bomb explosion. The fuse has been lit for some time, at least since the spending spree that started under the presidency of George W. Bush. But the lit fuse is not being put out by today's leadership. In fact new fuses have been lit, and so an even bigger explosion comes closer every day, as the 2012-2015 square of Uranus and Pluto creeps forward to form a grand square to the Sun-Saturn square in the USA's own horoscope.
As a Financial Astrologer living in America, it is rather surreal watching the USA enter into this state of self-destruction that is clearly suggested by these evolving planetary patterns, especially when you believe that the outcome still depends greatly on choices that can yet be made. But then again, I too am going through this powerful Uranus-Pluto square to planets in my own chart, as are all people born in the first half of cardinal signs. What's the difference? I am making conscious choices to reduce my spending and debt, and/or increase my revenues. Of course, some of this process is outside of my control, for the government's own actions can very well affect how much money I will have available to spend, as well as my clients. Less money to spend means less demand for products and services (especially services such as astrological consultations), and eventually greater unemployment in the private sector. As President Obama himself stated this past week in the CNBC article, interest rates would also be affected in a default, increasing costs to Americans for home and car loans and beyond. It would be, he said,"effectively a tax increase on everybody." He is absolutely right. He is so good at articulating the problem. Now if he and his colleagues could just figure out the sensible solution for those of us on this planet.
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Disclaimer and statement of purpose:
The purpose of this column is not to predict the future movement of various financial markets. However, that is the purpose of the MMA (Merriman Market Analyst) subscription services. This column is not a subscription service. It is a free service, except in those cases where a fee may be assessed to cover the cost of translating this column from English into a non-English language.
This weekly report is written with the intent to educate the reader on the relationship between astrological factors and collective human activities as they are happening. In this regard, this report will oftentimes report what happened in various stock and financial markets throughout the world in the past week, and discuss that movement in light of the geocosmic signatures that were in effect. It will then identify the geocosmic factors that will be in effect in the next week, or even month, or even years, and the author's understanding of how these signatures will likely affect human activity in the times to come. The author (Merriman) will do this from a perspective of a cycle's analyst looking at the military, political, economic, and even financial markets of the world.
It is possible that some forecasts will be made based on these factors. However, the primary goal is to both educate and alert the reader as to the psychological climate we are in, from an astrological perspective. The hope is that it will help the reader understand these psychological dynamics that underlie (or coincide with) the news events and hence financial markets of the day.
No guarantee as to the accuracy of this report is being made here. Any decisions in financial markets are solely the responsibility of the reader, and neither the author nor the publishers assume any responsibility at all for those individual decisions. Reader should understand that futures and options trading are considered high risk.
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