As of October 1st, the MSCI’s All-Country World Index is down 11 percent since June 30, the sharpest slump since 2011, while its Emerging Markets stocks benchmark has fallen 20 percent in the past three months. Global equity markets have lost over $13 trillion and world market capitalization has fallen back below $60 trillion for the first time since February 2014.
It appears the world’s central planners’ print-or-die policy to create economic growth and wealth has failed – and failed dramatically – BIG TIME! And despite endless interest rate cuts and debt balance sheet expansion of the Central Banks around the world, the last 4 months have seen an 18% collapse – the largest since Lehman Crisis in 2008.
The velocity of money (M2) has fallen to an all-time record low. The velocity of money (M2) is a significant measure of economic activity for M2 measures the movement of the nation’s money supply that includes cash and checking deposits that include savings deposits, money market mutual funds and other time deposits.
The velocity of money (M2) normally slows down during a recession. During the Uranus-Pluto Waning Square Alignment from 1929 – 1938 we witnessed a massive downturn in the M2-Velocity of Money. The graph above shows that velocity of money (M2) has continued to slow down in the “post-recession era” and has now dropped lower than at the beginning of the Great Depression.
The current Uranus-Pluto Waxing Square Alignment that began in 2007 continues to constellate its archetypal power on the world stage and augurs that we have entered a deflationary era.
Keep in mind financial downturns since the Uranus-Pluto alignment (1962-1972), have happened every seven years. The following is a summary of how this cycle has played out over the past 50 years…
It started in 1966 with a 20 percent stock market crash.
Seven years later, the market lost another 45 percent (1973-74).
Seven years later was the beginning of the “hard recession” (1980).
Seven years later was the Black Monday crash of 1987.
Seven years later was the bond market crash of 1994.
Seven years later was 9/11 and the 2001 tech bubble collapse.
Seven years later was the 2008 global financial collapse.
Note: Keep in mind that on September 30, 2008, the Dow rallied 485 points, and then proceeded to plunge 27% in the next eight days!
Prediction: October 1st 2015 – Witnessing the Beginning of the Destruction Of Fiat Money And The Birth Of New Monetary System
As the Super Blood Moon Lunar Eclipse is about to begin, billions of people around the world seem to have a sense that something ominous is coming. And since the last Blood Moon in April, we have seen some extraordinary things happen over the past 60 days:
The stock markets of the 10 largest global economies are ALL crashing.
Major volcanic eruptions and major earthquakes are happening at a rate far higher than usual.
Jesus said to them, “…it has been given to you to know the mysteries of the kingdom of heaven, but to them it has not been given…. I speak to them in parables, because seeing they do not see, and hearing they do not hear, nor do they understand.”
We are in the midst of a very rare time frame where four successive lunar eclipses (blood moons) have been occurring within a year and a half period, and they’re falling on the dates of biblical holidays through this September. Therefore we can expect some major world changes coming soon after this final blood moon, such as black swan or X-Events, such as geopolitical crisis, or a disruption of the global markets resulting in financial panic, or an outbreak of social unrest across the globe.
The Super Blood Moon – Lunar Eclipse event horoscope makes a direct hit on the U.S. Venus-Jupiter conjunction in its national horoscope, as transiting Pluto is within 20′ of orb to the U.S. Sun. Therefore, we can expect America’s period of grace is coming to an end and a time of judgement is beginning.
Using the Robson U.S. Declaration of Independence horoscope and employing the A.I.R. Star Trax Millenium Black Finance Model to measure the performance of the general economy for the United States during the Uranus-Pluto Square Alignment (using a 10 degree orb) 2007 – 2022, we can see that the economy is about to enter into the next phase of crisis between now and November 1st 2015.
Prediction: A Black Swan event will emerge that embroils the U.S. into a major geopolitical crisis that could ignite a regional war in the Middle East, as nation’s bond markets begin to implode, setting off a dollar crisis.
The Saturn-Neptune aspect is a 36 year cycle of deflation.
Neptune rules credit, and credit is accepted as money, but it is NOT real money as a circulating medium of exchange. Neptune also rules the money supply know as liquidity. Loans, bonds, and shares have some of the characteristics of money and are included in the broad money supply. However, hard assets such as gold and silver and cash are considered HARD MONEY, and credit and liquidity is considered SOFT MONEY.
Saturn-Neptune combinations such as the 270 degree backward square, has historically correlated to removing credit from the system by the Central Banks and a change (often a rise) in interest rates that effect the broad money supply, often after a massive monetary expansion period. Thus Saturn-Neptune is connected with inflation followed by deflation, and is also connected with the rise and decline of interest rates.
Historical crises that have occurred during 270 Degree Saturn-Neptune Backward Square are as follows:
1622: 30 Years War Crisis
1799: German Commodity Panic
1837: Land Panic
1873: Panic of 1873, Jay Cook Failure, German Panic
1945: Post WWII – Reconversion Recession
1963: The Great Salad Oil Swindle
1982-83: Recession, Mexican Debt Crisis .
“Don’t Fight the FED” Saturn-Neptune Backward Square Alignment – August 24th, 2015
The Saturn-Neptune backward square alignment began on August 24th, 2015.
The “Don’t fight the FED” meme is a key commandment for every trader on Wall Street, with the underlying assumption being that the Central Bankers rule financial markets and can move prices, wiping out anything in their way. However, the recent Chinese stock market rout in late August, and the global sell-off that followed, has called this dogma into question.
Several signs suggest that the loose monetary policy by the Central Bankers is increasingly proving ineffective and now the Central Banks are failing to generate enough upswing to win against the structural forces of constraining growth and inflation.
Monetary stimulus (e.g. QE4) can not fix low productivity in the economy, persistent unemployment, growing underemployment, stagnant demographics, debt overhangs and a lack of real reforms and fiscal stimulus.
A vast majority of “wealth” in the financial system is digital in nature – SOFT MONEY. Because of this, when the next Crisis hits, there will be a scramble for actual “ HARD MONEY” because derivatives (futures, options etc) and other digital forms of currency are in fact essentially worthless.
The Jupiter-Saturn cycle can be aptly described by the following quote,
“Capital increases when the community produces more than it consumes. Capital decreases when the community consumes more than it produces.”
In mundane astrology, the fundamental Jupiter-Saturn archetypal dynamic in regards to national economies is capital formation and growth. There is a tendency for corporate revenue growth and stock market operating earnings to peak between a conjunction through the opposition phase of the cycle.
However, the fundamentals of capital and sound policies that spurred the economic growth during the conjunction are often ignored leading to the mismanagement of capital and policies that discourage necessary reforms, or hard work during the waning 270 backward square (e.g. Too Big To Fail…).
This often leads to overcapacity and excess inventories, thus lowering production that leads to crisis
Historical Crises That Occurred During the 270 Backward Square:
1637: Tulip Mania High
1797: Recession – French Hostilities
1816: British Export Panic
1817: Post War Recession
1837: Land Panic
1857: Financial Panic of 1857
1896: Silver Depression
1995: Barings Collapse
The Partial Solar Eclipse today – September 13th, 2015, at 20 degrees Virgo – is occurring during the climax of the Biblical Cycle of the Shemitah that began in September 2014 during the unfolding Uranus-Pluto square alignments which gives it potent “archetypal” significance.
The dominant outer planet aspect in the Eclipse horoscope is the Jupiter-Neptune opposition. The Jupiter-Neptune cycle correlates with low industrial production and is also inflationary by nature. Mundane astrologer Charles Jayne wrote that Jupiter-Neptune aspects are deceptively most often involved with the distortion and dissolution of large-scale economies, and the failure of nations. Due to the erosion of justice and the moral breakdown of the “rule of law” with government and financial institutions, that led to fraud, corruption, inflation, and loss of the public trust.
Therefore, I believe this Partial Eclipse will augur the beginning of a global debt crisis, with the fall of the Financial Institution across the globe due in part to the unsustainable policies of the Central Banks. This debt crisis is likely to play out through a Black Swan financial event with powerful geopolitical implications that will spike market interest rates that will set-off a meltdown in the Bond Markets, as a daisy-chain of sovereign debt implosions begin to unwind invoking margin calls that invoke Credit Default Swaps in the OTC derivatives market.
The devaluation of the yuan by China this week triggered the largest one day drop for that currency in the modern era, causing global currencies to crash relative to the U.S. dollar as stock markets all over the world were rattled with the Dow falling 212 points on Tuesday, and Apple stock plummeting another 5 percent.
Both the stock market and oil prices have been plunging. Is this “just another cycle,” or is it something much worse?
Since the Chinese have devalued their currency, other nations that rely on exports are indicating that they plan do the same thing creating the prospect for a global “currency war.” The surging U.S. dollar is now putting an extraordinary level of stress on emerging markets nations as Emerging Market stocks just hit a brand new four-year low on Tuesday. The last three times Asian currencies collapsed against the U.S. dollar at this rate, the global financial system was shaken to the core.
Also, this is the very first time that the 50-day moving average for the Dow has moved below the 200-day moving average in the last four years. This is known as a “death cross,” and it is a very troubling sign. The only other times in history we’ve seen more than 50 split days during the past year were March 1968, August 1972, October 2000 and July 2006.
After all four of those, stocks lost more than a third of their value at some point during the next two years.
In regards to the credit markets, High-Yield Bonds have been “Extremely Overvalued” for the longest period ever. For U.S. stock investors have lost touch with reality, as Bloomberg reports, the collapse in high-yield bonds “is something that sooner or later is going to impact the stock market.”
Against this backdrop, Bill Holter included a long list of ominous financial warnings that were issued over the year by either the International Monetary Fund (IMF) or the Bank for International Settlements (BIS) that has recently warned the world is unable to fight the next global financial crash because central banks have spent everything in their reserves to overcome the last meltdown in 2008.
July 2014 – BIS –BIS Issues Strong Warning on “Asset Bubbles”
July 2014 – IMF –Bloomberg: IMF Warns of Potential Risks to Global Growth
October 2014 – BIS –”No One Could Foresee this Coming”
October 2014 IMF Direct Blog — What Could Make $3.8 Trillion in global bonds go up in smoke?
October 2014 IMF Report –”Heat Wave”-Rising financial risk in the U.S.
December 2014 – BIS –BIS Issues a new warning on markets
December 2014 – BIS —BIS Warnings on the U.S. Dollar
February 2015 – IMF – Shadow Banking — Another Warning from the IMF – This Time on “Shadow Banking”
March 2015 – Former IMF Peter Doyle – Don’t expect any warning on new crisis
April 2015 IMF – Liquidity Shock –IMF Tells Regulators to Brace for Liquidity Shock
May 2015 BIS – Time to Think about New Global Rules of the Game?
June 2015 BIS Credit Risk Report
June 2015 IMF (Jose Vinals) –IMF’s Vinals Says Central Banks May Have to be Market Makers
June 2015 (UK Telegraph) –The world is defenseless against the next financial crisis, warns BIS
July 2015 – IMF – Warns US the System is Still Vulnerable
July 2015 – IMF – Warns Pension Funds Could Pose Systemic Risk to the US
Jonathan Cahn, author of The Harbinger and The Mystery of the Shemitah, says “We are now approaching the month of the Shemitah.” Cahn stunned millions across America and the world with the mysteries revealed in his New York Times best-seller The Harbinger. His books uncovers and reveals a new realm of astonishing biblical mysteries which foretold the destruction and fall of great civilizations, economic recession and financial collapses. In the “Shemitah,” Cahn reveals that judgment comes to a backslidden nation in accordance with a seven-year cycle that correlates with the Hebrew calendar.
In Leviticus 25, God commanded the Israelites to observe a Sabbath year once every seven years in which they would let their land lie fallow:
25 Then the Lord spoke to Moses on Mount Sinai, saying: 2 Speak to the children of Israel, and say to them: When you come into the land that I give you, the land shall keep a sabbath to the Lord. 3 For six years you shall sow your field, and six years you shall prune your vineyard and gather in its fruit,4 but in the seventh year there shall be a sabbath of complete rest for the land, a sabbath for the Lord. You shall neither sow your field nor prune your vineyard. 5 That which grows by itself from your harvest you shall not reap, nor gather the grapes of your unpruned vines, for it is a year of complete rest for the land. 6 The sabbath produce of the land shall be food for you: for you, and for your male and female servants, and for your hired servant, and for your stranger who sojourns with you, 7 and for your livestock, and for the wild animals in your land, shall all its increase be food.
While in Deuteronomy 15, God instructed the Israelites to cancel debts in line with this same seven-year timetable:
15 At the end of every seven years you shall grant a relinquishing of debts.2 This is the manner of the relinquishing: Every creditor that has loaned anything to his neighbor shall relinquish it. He shall not exact it of his neighbor, or of his brother, because it is called the Lord’s relinquishment.
The Shemitah year was also called the year of “release” in biblical times because the land was allowed to rest and the financial accounts were wiped clean once every seven years. Chan states that the seven-year cycles can manifest as blessings as long as a nation follows the will of God. But for those nation’s that stray from God’s law, the Shemitah can bring severe judgment, often striking in the financial realm of a nation with severe political implications.
Fourteen years ago, on September 17th, 2001, which was Elul 29 on the Jewish calendar, the Dow Jones fell an astounding 684 points. At the end of the next Shemitah year, seven years later, on September 29th, 2008, which was Elul 29 on the Jewish calendar, the Dow Jones again plummeted 777 points, which still today remains the greatest one day stock market crash of all time!
The period from September 2014 through September 2015, is a most crucial time on the biblical calendar, for according to Cahn a new Shemitah cycle starts this September 13th and it’s actually the culmination of a 50 year cycle — a kind of super-Shemitah, and it will run through September 2016. According to Cahn,
“On September 13th 2015, the Shemitah reaches it peak on Elul 29, the Day of Nullification, when all debt and credit are wiped away.”
What is interesting to note for astrologers is that there will also be a Partial Solar Eclipse on September 13th, 2015. Over the past century, there have only been two other times when a Solar Eclipse has corresponded with the end of a Shemitah year. Those two times were in 1931 and 1987, and both foreshadowed market and bank panics, and major financial corrections.
As we head toward the Shemitah’s climax the Barbault Planetary Cyclic Index continues its precipitous downward plunge, descending 494 points from its peak in May 2014 at 994 to 500 in March 2022. Also during the this time the archetypal complex of the Uranus-Pluto square will still be in full-effect on the world stage. The convergence of these biblical cycle and mundane portents during the Fall of 2015 augur that we are heading into a perilous period where much of the damage control put in place by the Central Banks and Governments during the 2007-2009 financial crisis will begin to fail, lining up perfectly for a global financial crisis of greater magnitude and intensity then 2008, that could plunge the wold into deflationary depression over the next 7 years.
The emergence of the Uranus-Pluto Complex is yet another reminder to the astrological community that the relative economic and geopolitical stability of the globe from the end of World War II right up until 2008 is over. Since 2008 we have been in uncharted waters for circumstances have changed dramatically. The geopolitical stability and the steady economic growth that has been the backdrop to the pervasive buy-and-hold investment mentality of the masses has essentially disappeared. For relentless zigzag rise in financial markets for the past 150 years has been sustained by cheap fossil fuels, abundant fresh water resources, and a benign climate. And these we can no longer count on from here on out.
Even Gerald Celente, arguably the world’s foremost secular trends forecaster, whohas had a long track record of making some of the most controversial, yet correct calls in terms of global trends and events, just a few days ago told Eric King the following:
“I’m now predicting that we are going to see a global stock market crash before the end of the year.”
Celente says that it won’t just be U.S. stocks either. He believes that crashes are also coming to “the DAX, the FTSE, the CAC, Shanghai, and the Nikkei.” In other words, it is going to be a truly global financial crisis and he says that there is “going to be panic on the streets from Wall Street to Shanghai and from the UK down to Brazil”.
Conclusion: The biblical cycle of the Shemitah, along with the secular indicators,and the mundane astrological portents are all screaming that we are heading toward a Deflationary Implosion event that will initiate the process of a Full-Blown Global Collapse by the end of the decade. Therefore we can expect powerful shocks to occur in the system resulting in drastic changes in financial positions, along will titanic geopolitical power plays, accelerating market volatility, major market corrections, bank panics, and often sudden and large-scale economic failure. Also during the weeks ahead we can expect excessive rationalization by the talking heads of the mainstream financial news media, and unprecedented proclamations by governments and their respective leaders, to prevent the loss of credibility with the general populace, as unexpected “volcanic shocks” to the global system continue to accelerate and intensify.
Soon the wait will be over. Greece submitted a final compromise plan to the EU on Thursday, and the European finance ministers will meet now to discuss the proposal. This will be followed by an emergency summit for all 28 EU nations on Sunday to make a final decision on Greece’s future. The summit on Sunday is being billed as “the last chance” meeting by EU officials. Basically, Greece is being given just one more chance to embrace severe austerity measures that are being demanded of them by Germany and other creditor nations.
As we await the verdict on whether Greece will be in or out, here is a mundane horary on the speculative outcome:
“Will Greece Remain In The Eurozone After Sunday?”
Question asked by astrologer: 7/11/2015 at 3:13 pm PDT, San Francisco, California
Greece: 1st House – Ruled by Mars
EU Creditors: 7th House – Ruled by Venus
Eurozone: 10th House – Ruled by the Sun
Moon: Co-significator of the Question and the Greek Nation
1st House Testimonies:
Ruler of the 1st House Mars in its Fall –
Ruler of the 1st House in the Malefic 8th House –
Ruler of the 1st House Mars is Combust –
Saturn Occupies the First House –
7th House Testimonies:
Ruler of the 7th House Venus in the 10th Square Saturn –
The Moon is in the sign of her Exaltation +
The Moon is in the 7th House +
The Moon Conjunct the malefic star Algol –
The Moon’s First and Last Aspect is to malefic Saturn –
The Moon’s First and Last Aspect is to Saturn in the 1st House –
Based on the overwhelming set of negative horary testimonies, Germany will reject the final Greek proposal making it likely no agreement will be made during the Eurogroup EU Summit. Therefore it is highly probably that the ECB will suspend Greece’s ELA agreement, making the prospects for a Grexit is almost certain. The failure to come to an agreement will escalate and intensify the ongoing deterioration of the Greek economy that set into motion an utter collapse of the Greek banking system. Since the Moon will go “Void-of-Course” after it makes its last aspect to malefic Saturn, it is not clear from the horary figure how the Grexit from the Euzozone will transpire, other than it will be a protracted and difficult process due to the high number of fixed signs in the horoscope. Also, in the horary figure the Moon will traverse about 3 degrees before ingressing into a new sign; therefore, I predict that after Sunday’s announcement, Greece will be conditionally quarantined by the Eurozone (and treated as a third-world country until 2018) and allowed to restructure its debt as plans to roll out the drachma are set in motion.
Greece, Germany, and Debt Forgiveness
Here is the bigger problem that Europe now faces: Ultimately, Greek debt has to be forgiven by Germany, else Greece will not survive. That is a fact. The IMF wants to forgive debt but Germany is not prepared to forgive debt. Why? Because if they forgive Greece’s debt, that means that other indebted nations such as Spain, Italy, Portugal, Cyprus, Malta, etc., will have to write off large loans to Greece and they can’t afford to do that.
Regardless, Greece needs debt forgiveness, otherwise they can’t survive. Period. And if there is debt forgiveness, then you have a massive problem in the European banking system because European banks won’t survive. Why? Because the European banks and the European Central Bank have major outstanding lines out to Greece. The European Central Bank is now bankrupt, just as Greece is bankrupt, and Greek debt is worth zero and the same is true for Italy, Spain and Portugal.
Also, if there was debt forgiveness, the European countries that have lent to Greece may not survive. Plus, Spain, Portugal, and Italy will want the same debt forgiveness for themselves else they will default.
Keep in mind what keeps the EU oligarchical elite and Angela Merkel awake at night is not the cries of despair from Greek pensioners, nor the penniless Cypriots, nor the hunger of starving and Portuguese, nor the politically explosive number of unemployed Spanish workers and impoverished Italian households — it’s the rise of the “Euroskeptic.”
If that wasn’t enough, there are numerous secular indicators that significant economic trouble is ahead for Europe that will have a direct impact on the entire global economy. For instance, global commodity prices have be plunging as economists debate if a Grexit could trigger turmoil in financial markets. Also there is a massive problem brewing with the $100 trillion worldwide bond market. Why? Because according to the Bank for International Settlements – the Central Banks of Central Banks Worldwide, there is 26.45 trillion dollars in currency derivatives that are directly tied to the value of the Euro, and there is no longer any real liquidity in this market. So there is major concern that a Grexit could likely set off a “Ka-BOOM” event (aka a “Minsky Moment”), in the European bond market in the next few months ahead.
A “no deal” vote by the EU will surely plunge Greece, and the rest of the EU, into financial and political turmoil. For it is clear at this point no matter what happens with Greece, the truth is that we are rapidly moving toward another major worldwide financial crisis.