Is there hope in our understanding of the cosmos?

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Markets expected the Fed to raise its interest rate target by 0.75%, but officials also did not expect rates to hit 4.6% in a year, up sharply from the peak rate of 3.8% expected in June. Mr. Powell did not sugarcoat things. Inflation must come down, he said, and that requires a looser labor market. “I wish there was a painless way to do it. There isn’t,” he told reporters. Greg Ip, “Markets Now Bracing for a Hard Landing,” Wall Street Journal, September 23, 2022.

Stocks fell on Friday to cap a brutal week for financial markets, as soaring interest rates and foreign currency turbulence heightened fears of a global recession. “The market has moved clearly and quickly from worries about inflation to worries about the Federal Reserve’s aggressive campaign,” said Quincy Krosby of LPL Financial. “You see bond yields rising to levels we haven’t seen in years – it changes the mindset on how the Fed achieves price stability without something breaking. It this is a global macro mess that the market is trying to fix,” – Samantha Subin, “Dow Drops Nearly 500 Points to Close at New Low for 2022 on Rising Recession Fears,” www.cnbc.com, September 23, 2022.

And with that surprising and unexpected comment from the Fed quoted above, the panic of a powerfully aspected Uranus during retrograde Mercury is well underway. It just happens to be right in the middle of the time frame when Jupiter (hysteria, hysteria) makes its double semi-square from the middle of the fourth and last waning square between Saturn and Uranus, as shown over the past few weeks in this column. The cosmic tsunami/hurricane predicted for financial markets during this period lived up to its hype as several global stock indices fell below their June lows.

In Asia and the Pacific Rim, the Hang Seng fell to its lowest level in more than 10 years. None of the other markets hit new yearly lows, which is encouraging, but they did hit new multi-week lows.

In Europe, the German DAX and Zurich SMI indices hit their lowest levels since November 2020. However, the Dutch AEX held above its June 23 low and the FTSE above its lows. Of March.

In the Americas, it was a strange week. Brazil’s Bovespa hit its highest level since April 20 and the DJIA fell to its lowest level since November 2020. But the S&P and NASDAQ remain slightly above their June lows. Thus, we look to next week to see if these divergences hold, which would fit Mercury retrograde’s persona, the Trickster, who likes to break support or resistance and then quickly reverse into a false exit. Or will they all fall lower and from the top of the cliff, which would fit Uranus’ breakout theme when highlighted in such a powerful aspect formation as exists today?

Spectacular market activity was also present in other financial markets. Ten-year US Treasuries hit a new 13-year low. The euro fell to a 20-year low as the US dollar hit its highest level since May 2002. Gold fell to 1636 (October contract), its lowest level since April 2020. And crude oil fell below $80, its lowest level since January 10. These are not minor market movements. These are major Uranus-like disturbances, compounded by the presence of Jupiter’s exaggerated nature.

Short-term geocosmics and longer-term reflections

There are indignities that even the badly battered Japanese yen cannot bear and falling below 145 to the dollar is proving to be one of them. Tokyo intervened in the foreign exchange market on Thursday for the first time in 24 years to try to manage the fallout from Western central banks’ autonomous tightening strategies. – “The Fed, the dollar, the yen and you”, Opinion Page, Wall Street Journal, September 23, 2022.

While the pace of rate hikes has been rapid in recent months, the story of the past year is how long it took the Fed to act. The Fed’s median projection for its target rate for 2022 has risen from 0.9% last December to 1.9% in March, 3.4% in June and now 4.4%. This upward march reflects the Fed’s historic misjudgment of how inflation would rise and how persistent it would prove. One of the costs of delay will be slower economic growth. – “The Fed’s March to the Top”, Opinion Page, Wall Street Journal, September 22, 2022.

The average burden per U.S. taxpayer for the new federal student debt forgiveness will be $2,503.22, according to new estimates from the National Taxpayers Union, a fiscally conservative advocacy group. – Lorie Konish “Student Loan Forgiveness Could Burden $2,500 Per Taxpayer,” www.cnbc.com, September 2, 2022.

The idea of ​​a soft landing seems to have ended with a deafening thud. With Uranus, major support zones have broken out. With Jupiter, the magnitude of the sell-off has exceeded ordinary corrections and now we are faced with global hysteria and panic, the downside of Jupiter, which normally relishes hope and optimism. With Saturn, fear now dominates greed. With all three planets combined, we have panic, hysteria and the collective feeling that a crash is unfolding before our eyes.

There will be a lot of blame thrown around. In this author’s view, it started with the supply chain disruptions initiated by former President Trump’s tariff wars in 2019-20. As noted in this column at the time, the last major tariff war was the Smoot-Hawley Tariff Act of June 1930, which contributed to the Great Depression by signaling American isolationism. It happens again. Granted, there was no inflation when Trump started these tariff wars until he reluctantly left office, but that’s when the supply chains started to collapse, which has become a major contributor to today’s inflation problems. It is a lagging indicator.

But currently, there is President Biden’s spending spree and energy (supply) pipeline shutdowns that began soon after he took office and continues today. His economic policies to increase (consumer) demand by enacting some of the largest spending programs in US history were the exact opposite of the economic policy needed to drive down prices. It is not an act of reducing inflation. It was an era that called for increasing supplies to drive down prices, not increasing debt and spending, and shutting down sources of supply that could contain inflation (energy prices).

And then there’s the Fed’s curious and historic inflation misjudgment that quickly spun out of control as its ZIRP (zero interest rate) and QE (quantitative easing) policies were kept in effect. far too long, as the quote from the WSJ indicates. above. The overly stimulative fiscal and monetary policies of 2021 were powerful contributors to the end of the bull market and economic growth we struggle with today. It could cause another major economic depression, and I’m quite sure that’s not the legacy President Powell wants to leave for his term. I’m still curious to see if he will soon pivot, despite his hawkish proclamations. He is, after all, a lawyer, not an economist. Its economic projections are not correct. But his arguments have sounded convincing – so far.

Is there hope in our understanding of the cosmos? In fact, there are. This is the middle of the cosmic storm. Saturn will slowly begin to move out of its 45-year waning square to Uranus next week. Jupiter will continue to make another transit of its semi-squares to Saturn and Uranus until December 24, 2022 and March 21, 2023, respectively, after which Jupiter will move to its sextile to Saturn on June 19, 2023. This is during this period in which the cosmos suggests (to me) that inflation will begin to come down and that the “blame game” and extremist activities and beliefs will begin to give way to moderate efforts to rebuild and work together to mend the broken social and economic structures. It could also indicate another stock market rally as we head into years 5-7 of the Jupiter/Saturn growth cycle that began with their conjunction on December 20, 2020. Stock markets typically peak then. But this is followed by another collapse, which we will cover in this year’s 2023 forecast book.

For next week we find the powerful geocosmic aspects still in play. The Sun is between its oppositions to both Neptune and Jupiter (September 16-26). Venus is also in opposition to Neptune (September 24) and Jupiter (October 1). And Jupiter completes its second semi-square with Uranus on September 28. With such activity involving Jupiter and Neptune, we could see a crude oil reversal. We may also see an escalation in the collective sense of hysteria and panic, as whenever Jupiter and Neptune are highlighted there is usually an irrational exuberance or sense of panic as things seem to spiral out of control. . But as the new Moon also begins this week (September 25) and these harsh aspects begin to separate, the height of this hysteria may also decline from its peak.

As noted in our recent Twitter threads, “If you can’t stand the wind, come in and close the door until the storm passes.” It will soon be time to return to the world of financial markets as they calm down and begin to behave in a more normal way. Of course, the more “normal” pattern may be of a bear rather than a bull, but one can also do well if the bear is understood, respected, and not agitated by the Trickster and Uranus entering without being there. invited into his lair.

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