People continue to ask me if what they see, feel, and hear in the world will get worse, or better.
This quote was suggested by our Anonymous Monetarist who just happens to be in the city I feature in my forecast today ~ the great city by the lake, Chicago.
~ Ecclesiastes 1:18, 7:3-4, 12:14 ~
I have been forecasting this for some time, if anyone has cared to listen to one astrologer. I pray for the world as I read the transits of the skies day and night that tell me all I know about the future. This is my solitary life as a mundane astrologer while I continue to warn about the signs of the times.
There is hope. Just look in a mirror and you may see what I see. You are that hope. You are that change. You are the future.
Along with the rest of us ~ the little people.
The weekend has many people confused, angry, wanting to know the truth of what happened on Thursday. Many mock the "fat finger" farce pushing out by the networks and want to know what is truly happening.
It's been a weird week. People have commented to me that they have never quite seen a week of world news this important since September 11, 2001.
There were a lot of ticked off traders ~ tens of thousands in fact ~ who say they lost all their trades, and money invested during the mysterious 30 minute "crash" - then, rebounded enough to lose 350 points. The Dow lost nearly 140 points on Friday, May 7th, to close at 10,380.
The day of May 6th, saw Wall Street witness one of its most stressful days, according to reports. In 30 minutes, the Dow Jones dived nearly 1,000 points on fears that Greece's debt problems could slam on the brakes towards a much needed global economic recovery.
Sovereign Debt Woes, like those of Greece, has spread to the U.S. and Asia.
Here is a look at the extraordinary events on Wall Street on May 6th:
- The Dow hit an Intraday high of 10879.76 May 6, up 11.64 points, or 0.11%
- Then it hit an Intraday low of 9869.62 today, down 998.50 points, or 9.19%
- Its Biggest Intraday POINT drop in its history.
- A high-low swing of 1,010.14 points
This was the third day of sharp market declines. The Dow Jones had already dropped 284 points on Tuesday, May 4th and Wednesday, May 5th.
“I think three days makes a pattern, and we as investors grew complacent that every time we had a bad day we had a good day,” Jake Dollarhide, chief executive of Longbow Asset Management, said. “This is a terrible, terrible day.
Just what blow out from Chicago that started severe colds in New York?
Then, we hear this ~
May 6 (Bloomberg) -- Nasdaq OMX Group Inc. said it will cancel all trades of stocks at prices that were 60 percent above or below the last price at 2:40 p.m. or immediately prior.
The exchange operator said in a statement it will cancel all trades "greater than or less than 60 percent away from the consolidated last print in that security at 14:40:00 or immediately prior."
Pure gambling, the criminals are in charge, there is no rule of law. These actions will destroy confidence, not build it and the people running the markets will eventually get what’s coming to them.
The media is absolutely shell shocked looking for any excuse plausible why the selling was not for real. It was for real, the market was saved by intervention, but the media can’t admit the crash much less the intervention. Denial isn’t just a river in Egypt, that’s for sure…"
Another group of people who "get it" are those at Zerohedge.com ~
Check out what else they had to say about the so-called "fat finger blip" and what Zerohedge warned about High-Frequency Trading (HFT) back in 2009.
"The banks and others who have argued for innovation have just proved once again that their brand of "innovation" means that the average investor gets bent over the table. You cannot, as an investor, be in the market until these outrageous practices are permanently barred from the exchanges.
I was on the right side of the destruction today, but I could have very easily been on the wrong side and gotten badly hurt. As it stands I'm quite certain there were tens of thousands of individual traders who went so far into negative equity in the futures market and got immediately liquidated that we will be hearing of blown up accounts and bankrupted traders for weeks if not months."
There are going to be a lot of very pissed off traders about Friday, May 7th. See Denninger's advice & warnings here in: Mr. President: Unplug the F*ing Computers!
Oh, and let's not forget who we really need to hear from:
How About the Regular Joe American. What does He think about all this?
All major indexes lost three-percent May 6; which reminded many traders of the near chaos the American stock market experienced back in the gloomy autumn of 2008.
The German chancellor spoke earlier to U.S. President Barack Obama, who called for a "strong policy response," involving the wider international community.
The May 9th announcement followed agreement May 7-8th among EU leaders for a €110bn (£95bn) EU-International Monetary Fund rescue package for Greece to prevent its debt crisis from spreading.
Meanwhile, finance ministers from 27 Eurozone nations met in session May 10th, said ready to work on the details of their "anti-speculation plan" with the European Central Bank in attendance. This would be a one trillion monetary bailout of the Eurozone.
The effects on world markets, while positive in the short-term, is still very dangerous says global economic analyst Reggie Middleton who outlines initial reaction to the Pan-European Bailout.
Jean-Claude Juncker, who heads the Euro Group of EU finance ministers, said: "We are talking about a global attack against the Euro, and the Eurozone must react as one."
However, the demise of Prime Minister Gordon Brown is certain. I expect Brown to step down as British prime minister anytime this week of May 9-15.
Despite the private conferences, and promises of power sharing between the Liberal Democrats and Conservatives, I expect that another British national election will have to be called. It is certain that the Liberal Democrats and Conservatives will not be able to share power due to their ideological differences.
The Cardinal T-Square transits indicate while some would prefer David Cameron to become the new British prime minister there are serious doubts within the Conservative Party as to the direction they should take the country.
This is also generational. The "old" versus the "new," as depicted by the Saturn/Uranus opposition, and, the coming Jupiter/Saturn opposition later this month of May 2010.
I like the British. I always have. Ever since I was kid. I took Ben Franklin's perspective, and remain with it these days as well. That Ben, oh, he was surely a very wise man.
Plus, some of the greatest astrologers in the world ~ with the exception of France's Nostradamus ~ other than him ~ have come from England.
The English are a very practical people. We Americans have learned from them despite our youth, our common differences, and shared language.
Still, the British people know BS when they see it. And the fact is that they are just as pissed off about the economy as the Americans.
So, the thing is this ~
If the British people do not show confidence in who is going to be at 10 Downing then the thing is to have the British people pick who will live there.
That's practical, isn't it?
So, get to work. Sorry to be so Capricorn about it all, but the talking and chatting and positioning with more positioning isn't going to get the dirty banks any cleaner now, is it? What are you waiting for?
Still, a challenge for the Liberal Democrats is to either get Clegg up to being able to perform on the global stage, or, to find another Liberal Democrat leader who is able to do so. Still the results of the election show that all the parties have the support of small percentages of the British public.
|Party||share of votes cast||share of total electorate|
Stories of closed polls, and frustrated voters are all signs of attempt to influence the outcome, but overall, this was a case of Mercury retrograde: poor planning, a lack of energy, and a pissed off British electorate who did not find the candidate they want to inhabit 10 Downing Street.
A coalition British government does not bode well with the cardinal transits. In fact, it is my forecast that another general election will have to be called to straighten out the mess and to find a clear winner to reside at 10 Downing Street. That will do it right there.
Cameron and Clegg. What is at hand now is the X-factor; which will play out in the weeks and months to come. That is another British leader emerging as a front runner, much in the same way that Margaret Thatcher came to power in the late 1970s, and early 1980s.
People can disagree with Ms. Thatcher all they want (and often did) but, there's one thing everyone agreed on when it came to her as prime minister ~ she was always clear, and straight-forward, right? She did not like, nor, approve of: bullshit. Ever.
So, whomever is the best cleaning lady in the room ~ wins.
This election, as has been the atmosphere, has been ideological, but that is what the problem has been all along; especially when it came to the economy. Biases, and gender differences aside: who has the best nativity to help to lead England out of this mess?
An ideological shift from Labor to Tory or to Liberal Democrat is not the answer. Not at this time in history. The old arguments and political posturing is a waste of valuable time, and continues the same "old" versus "new" inclinations of Saturn/Uranus.
Perhaps, with the world transits in light, and those of the near future. Perhaps, a "Thatcher" blast from the past? But this time from Labour? Did not Margaret Thatcher also alienate men, as they like to say in the British media?
What woman, I ask, does not?
What England needs is a leader. That's what the British people said in the last election, if anyone has bothered to understand the results of the May 6th election.
Whomever it will be, male or female, England will need a leader with bucket and scrubs in hand. Steely-eyes, keen on dirt, with ammonia ready to wipe down everything and bring order and cleanliness to the house, so to speak.
Clean enough so one could eat off the floor if one chooses.
Politics? Sure. Ideology? Okay. Yet, the facts are:
In these global times, the next prime minister is going to have to be real ~ have a good soft heart; be smart as a whip; wiser than she or he already is; tough, fair-minded, straight-forward ~ and must daily administer that truly British gift to the world ~ practicality.
The spread of seats throughout the UK among the Tories, Labour, and Liberal Democrats means that the next prime minister will have to contend with the most spread out, but divided Parliament seen for some time in England.
So, I expect another general election to be called for in England to straighten things out once and for all.
Mike Shedlock, a registered investment adviser representative for SitkaPacific Capital Management updates us this weekend on the political intrigue in Europe over Greece, the Euro, and the ongoing drama out of recent national elections in England.
Bruce Krasting says this coming week of May 9-15 should be interesting in Europe ~
"It appears that the markets are in for some action next week. The EU leaders have pledged to put a package of measures on the table for the market to absorb by Sunday evening.
There are no details of what may be coming as of yet. This is happening so fast that I doubt they actually have a plan. What plans they will come up with are all going to be short term fixes for the excessive volatility we have seen.
Peter Cardillo, chief market economist at Avalon Partners, said there were a number of negative comments Thursday about the Greek crisis expanding beyond Europe, including a remark, he said, by James B. Bullard, president of the Federal Reserve Bank of St. Louis.
Mr. Bullard said debt problems in Greece and other European countries posed a risk to the United States economic outlook.
“What really happened here," Cardillo said, was that "gold was going through the roof, and the Euro went down to $1.25. There was a lot of panic selling that came in and the market fell apart.”
I keep forecasting that under these building cardinal crisis inclinations it is best to avoid impulse and haste. Still, there were reports out of Wall Street that a "technical glitch hastened the selling" which sent shock waves through the market.
This would have been the reaction to events in Greece, and fears of the emerging European sovereign debt contagion.
One trader emailed me with such emotion that I had to decipher his words because it looked as if he rushed so much and could not wait to send it to me.
Yes, emotions are running a bit high, but, these are world transits, and I continue to maintain, as I have for over a year now, for people to slow down.
Apparently, traders in all world markets are very concerned Greece's economic problems will hurt other European countries and ultimately, the American recovery.
Today, Greek lawmakers voted 172-121 to approve the highly unpopular austerity measures worth about €30 billion Euros through 2012. The cutbacks will slash pensions and civil servants' pay and further hike consumer taxes.
Other European governments are now rushing to get parliamentary approval for Greece's loans with leaders meeting Friday, May 7th in Brussels.
Back in Greece, things could not be worse. Right after the parliament approved the austerity conditions the opposition party torn into the government for imposing measures they say are much too harsh for the population to endure.
"The dose of the medicine you are administering is in danger of killing the patient," said conservative opposition leader Antonis Samaras.
Angry, Samaras then expelled a dissenting lawmaker, former Foreign Minister Dora Bakovannis, which then left his conservative party share of parliamentary seats at 90.
Right after the vote in Athens, another round of fresh clashes broke out with tens of thousands of people battling police outside parliament. Though the violence was briefly contained by riot police firing tear gas at the protesters, protesters continued to pelt police with stones, oranges, and Molotov cocktails.
Demonstrators banging drums and shouting anti-government slogans through bullhorns, unfurled a giant black banner outside parliament earlier Thursday.
"We have done what was necessary, not what was easy," Finance Minister George Papaconstantinou said after the vote. "Without these measures, we'd be thrown into the deepest recession this country has ever known."
Protester Thodoris Mougiakos said he was angry the IMF would control Greek finances. "It's blackmail," he said. "There is money, but they spend it on things like armaments and businesses. The church has money too. If we had been drawing money from all these sources, we wouldn't be in this situation now."
Under the coming global transits, I am forecasting Greece will experience a revolution and that the European sovereign crisis will worsen. Though the media would like to think that the worst is past, I am forecasting that the worst is yet to come. It makes me very sad.
I wish I had better news for everyone, but it is my policy as a mundane astrologer to tell it like it is. We are all grown-ups here.
On Friday, May 7th, the transiting Moon will be in the early degrees of Pisces, and stocks should rebound slightly, but with continued high tensions due to the European debt crisis.
A quirky & tense Friday is in store for the stock market with lots of jitterbugging all around. All eyes will be not only on Greece, but on Germany, and, Europe as a whole, so the Plunge Protection Team should remain on duty in case emotions get out of hand again.
After a weekend of devouring the research analyst blogs, and going over the European bond yield numbers, especially in Germany, expect Monday, May 10th to continue the fever pitch with a last quarter Moon in Aries in square aspect to Pluto in Capricorn. Unfavorable.
Aries is another money sign, and with the Moon in this cardinal position, the aspects are still quite tense. A lot of money is moving into German assets for protection, and with the Euro currency falling against the Dollar, anyone watching this weekend will want to keep count of how much is flowing into Germany.
Mercury does not station direct until Wednesday, May 12, and the Moon will still be in a last quarter phase until it reaches new moon phase on Friday, May 14 when money can be made again.
On Friday, May 14, there's more so-called "good news," but with the Taurus Moon square to Neptune in Aquarius next Friday, stay away from the tech stocks, and stick with biotechnology stocks, pharmaceutical, and good ole bricks and mortar companies.
Other than that, May 14 is basically the best day from now to then. So, there's another week to go. All in all, expect next week to continue the wild up and down roller coaster market ride on fears of the contagion spread of European sovereign debt through Friday, May 14th.
So, this is just the start of a new, deeper, and deadlier phase of the ongoing global economic crisis in my astrological estimation.
Right now, here in early May 2010, we are less than a month away from the start of a powerful series of Cardinal inclinations involving the outer planets which will take place during the months of June, July, and August 2010, and continue through into the mid-2010s before easing off.
However, between 2010 and say, 2014, the cardinal transits inclining the Earth will feature rebellions, revolts and revolutions directly associated with the massive levels of financial fraud and corruption over the last decade.
Until the root problems are dealt with ~ straight up ~ with justice and common sense being applied and practiced in the real world, say, with the return of Glass-Steagall, and hunting down our bad guys, i.e., Goldman Sachs, John Paulson & Co., ~ things will only get worse.
You run from a fight rather than face it like men. You Armani suit-wearing liars, cheats, and sickos. In the city of Brotherly Love, in Philadelphia, we fight with everything we've got ~ with our bare hands, with heart and true intent. During the Revolutionary war, they invaded New York and stayed for six years. They invaded Philadelphia and evacuated after one month.
Thus, our great country called the United States of America was born.
All the money in the world will not save you from what you've got coming. Believe it. I cannot wait. The global transits that will take you down ~ and out for the count ~ are nearly here.
See the power of Mundane Astrology. There are many very good people in American government. They are with the people because We Are The People.
Do not count America out just yet; you hedge fund traitors. Have your aspirin & ice buckets handy ~ you guys are going to need lots.
Welcome to Rocky town, pals.
And, we don't drink "tea" you corrupt jerks ~ we drink coffee ~ we're always awake, ready and willing. I hate you Armani-loving cheats right down to your very guts. Cowards.
As Europe shudders in the wake of the Greek Crisis, global markets continue to see the Euro currency sink against the dollar as the world awaits more bad market news about the exploding Sovereign Debts of European nations.
All this comes in the prelude to the coming conjunction of Jupiter & Uranus into Aries playing significant roles in the Cardinal T-Square between Saturn, Uranus, and Pluto.
This T-square was last seen by mundane astrologers in the early 1930s, and features global crisis bordering on a worldwide economic depression.
It has been my forecast for years that the beginning of the decade of the 2010s will result in major economic collapse of nations from the direct causes of widespread financial corruption that has now thrown whole European nations into severe recessions.
This comes a day before the Greek Parliament is expected to vote and pass a strict International Monetary Fund/European Union bailout that is highly unpopular with Greek citizens.
The problems of Greece continue to show that a much wider crisis of Sovereign debt in Europe has many investors spooked about the true stability of the Euro Monetary Union.
In Europe, there exists the strong potential that Spain, a country with a very weak economy that dwarfs Greece, will come under pressure as well.
Andrew Garthwaite, a strategist at Credit Suisse, said in recent report that European banks held up to $1.3 trillion of Greek, Spanish and Portuguese debt at high risk of default.
Should this happen, and I am forecasting it will because of global transits, then Europe will face a severe banking crisis similar to events that occurred immediately after the collapse of Lehman Brothers in the fall of 2008.
On May 6, it has been reported by European officials that, "The gap between the yield on longer-term debt of Greece, Portugal, and other weakened countries, and that of comparable German debt also widened.
The yield on the benchmark Greek government bond reached 10 percent, while yields on comparable Portuguese debt increased to 5.8 percent.
Spanish & Irish bond yields also rose. Spain remains the biggest concern. Despite the political factors, the IMF, and the European Union were able to raise funds to support Greece's bailout.
With the violent clashes in Greece, and grave announcements from German politicians, the Euro slumped below $1.29 May 6th against the U.S. dollar for the first time since April 2009.
Stocks were sold across European bourses as nervous investors sent prices, for what they see as the safest assets, like German government bonds, to a record high. The Greek government needs $11.6 billion by Wednesday, May 19 to cover its debt payments.
Experts say a resolution of Greece's problems is considered only a temporary fix and that similar issues are looming for Spain and Portugal, both countries who've had their debt ratings downgraded earlier this week.
According to an analysis by Barclays Capital, for Greece to meet the proposed target of a budget deficit of 4 to 6 percent of economic output by 2014, the government has to find savings of about 13.5 percent of its total output.
- The Euro tumbled below $1.29 for the first time since April 2009
- Stock markets in Germany, France, the UK, Italy, Spain & Portugal all fell
- The yield on Germany's 10-year bond reached a record low
Axel Weber, the powerful German central banker said, "there is a grave threat of contagion effects for other member states in the monetary union and increasing negative feedback loop effects."
Talking about contagion: Spain is next.
It's bailout may cost as much as $600 billion, according to U.S. Representative Mark Steven Kirk, a republican from Illinois, who serves on the committee overseeing American financing to the IMF. "That is far more than the monetary fund has available to lend," he said.
According to sources, the monetary fund only has $268 billion on hand ~ a shortfall of $332 billion. Quite a number indeed.
Still, some economists are calling for a kind of American-type bailout that took place in October 2008 in suggesting that the European Central Bank (ECB) buy billions of Euros of the Greek, Portuguese and Spanish debt investors have shunned with the IMF potentially offering to bailout Spain next.
This would be well over the $700 billion the U.S. Congress approved in their TARP bailout of the big banks in 2008, that saved the American economy from collapse.
The problem is that for the most part, the pairing of the ECB and the IMF is a strange partnership to witness for many economists, who say they do not expect the Europeans to show the courage and flexibility needed for such large bailouts of entire nations in the euro zone.
The Greek bailout agreement of May 1, 2010 took place under a Mercury retrograde in Taurus. A bad time to formulate such heady agreements like huge financial bailouts of whole countries.
The expected passage of the bailout by EU member nations is by Friday, May 7th. The Greek Parliament has already passed the measure May 6th.
All this, with Mercury retrograde. It's amazing. It really is just, well, amazing...
Now, European officials continue to make serious errors saying the bailout plan for Greece is sufficient and there that is simply no need for a broader aid proposal , or, for a formal debt restructuring in any of the other afflicted countries.
For one, it is obvious that investors continue to push down the Euro, which fell to $1.28 on May 5. Then, today, on May 6th, a global decline in stock values. These are sure signs investor confidence is eroding ~ especially in Europe.
Second, and most important ~ the world transits on this situation are clear, and so is my advice on this matter:
It is my forecast that the Greek EU-IMF bailout agreement will have to be revised, with major alterations, and changed after Mercury stations direct at 2-Taurus on May 11th.
My astrological advice would be to immediately slow down, stop, and then review, revise, and redo the bailout agreement with a focus to cut back the severe austerity measures on the Greek people, and then ~ come up with a better plan to relieve the Greek economy before all hell breaks loose.
And believe, me, it is closer than you may think.
There still is time to bring some calmer heads to this situation should the players and their staffs pull back and look seriously at revising the conditions being forced on Greece. Slow down. Do not rush under these cardinal inclinations or you all will make things worse.
The Germans would be an immense help here, and would improve their status by stepping in to give Greece help without pulling itself into the fray politically.
Germany is only protecting itself, and rightly so.
Caution is well advised here, and the Germans have been practicing it despite pressures from the EU, and others, those who continue to make serious errors by rushing things through haste, and impulse.
Another Big no no under the cardinal inclinations.
Those Germans reading this already know what I know about the coming new Deutsche Mark. If this decision has already been made, then there is simply no reason to pretend as if it is not going to happen, yes?
There is no need to pretend that Germany is not the sovereign nation that it truly is anyhow. Moreover, it is well-known that Germany was forced into accepting EU conditions despite its own concerns about the Euro, and integration of weaker European nations into the monetary union.
So, why pretend when much is at stake at this point? The Germans cannot be faulted for being very skeptical of the bailout plans given the history of Germany's concern about the monetary union over several decades.
Germany is being asked, again, to do something it does not want to do, and for very good reasons. What is happening is Germany is going to go its own way - fiscally, and through its own currency - since Brussels cannot seem to balance its own checkbooks.
A positive move for Greece would be to extend the provisions beyond three years, which is very shortsighted and over-optimistic in my view; considering the extent to which the world economy will need to recover for Europe to absorb the cutbacks in spending that is surely coming.
All this will do is to spread violent social rebellions in the years to come with possible overthrows of several governments in the process. This is very expensive as it is, and surely there are better and positive ways to handle this situation, yes?
I say there is.
In the short-term again: Review, Revise & Redo.
A proper time to review the changes to the Greek bailout agreement would be after the May 14 New Moon in Taurus, then, to enact the revised changes between May 28 through June 12th.
This would ease pressure on the Euro, and give investors more time to build up some market confidence. It would also give the Germans more time to think, and allow things to calm down on the streets of Athens with people knowing that the severe cutbacks are being re-thought.
It also allows the Greek government more time to ease into the conditions beyond the ridiculously short three months given to Prime Minister George Papandreou to begin the terms of the austerity package.
This will not only calm things down in Europe, but will save many lives in the process. This is most important.
I would give Greece the rest of 2010 to make adjustments in these draconian austerity measures, and allow the changes to take place gradually, not beginning until late August 2011. This will calm things down substantially.
World transits clearly show that forcing all this to take place, under these powerful cardinal transits, at this time, and through the summer and autumn months simply adds up to economic suicide ~ on a European-wide scale.
It does not allow for more favorable transits to arrive in time before such severe measures are forced on a country, with impacts outside of Greece, and affecting the entire global economy ~ especially in Europe.
But, then again, that's just me. I'm only a mundane astrolog, yes? So what do I know?
Meanwhile, Europe is holding its collective breath.
“It is not really about money,” says Timothy Congdon, an economist and Euro skeptic who said he foresees a wide exodus of savings in banks sitting on Europe’s periphery to flow into Germany because of serious doubts about some of the nations in the monetary union.
This is another matter that is very serious.
People tend to forget what the "weather" was like back in June 1997, when the move towards the Euro was cemented at the European Council Meeting in Amsterdam. More on that below.
German public opinion was always wary of giving up their beloved Deutsche mark, so the German government insisted on tough conditions for countries like Greece that wanted to join the monetary union back in 1981, when it entered the then-European Community.
The European monetary union rule was that the budget deficits of all member nations were supposed to be below three-percent of gross domestic product and that debt was not to exceed 60 percent of G.D.P. while inflation could not top three-percent.
Greece is not alone, and is not the only Eurozone nation under stress that has to withstand severe spending cuts while at the same time holding to the monetary unions' fixed regimen.
Central European countries like Latvia, which is now taking part in an IMF bailout program; and Lithuania, surviving on its own ~ have shrunk by more than 10 percent as a result of deep cutbacks in government spending.
No one expected the economic crisis of 2007-08, and now, ten years into the birth of the Euro, we find just that.
See ~ TREATY OF AMSTERDAM AMENDING THE TREATY ON EUROPEAN UNION, THE TREATIES ESTABLISHING THE EUROPEAN COMMUNITIES AND RELATED ACTS.
I clearly remember the scene in Amsterdam when in June 1997 when the designs for the Euro were agreed upon. What I saw from the skies was a series of swirling dark clouds that descended over the very building leaders gathered to meet. It was an strange sight for sure, and, an ominous warning to an astrologer.
It was the first time that newly-elected British Prime Minister Tony Blair was introduced to the other European leaders. Heady days. Everyone was all smiles, but the day began with those swirling dark clouds, as if sent by God Himself to make a point about the future of the European Union, and the Euro.
Those dark clouds, I knew, were a warning. What also took place in Amsterdam on June 16-18, 1997 was a resolution on something called ERM2 ~ an an exchange rate mechanism between the Euro and the currencies of the other EU countries was been designed.
Basic Information on the Amsterdam Treaty.
On the basis of this document, the European Council adopted a Resolution on the ERM2 at its meeting in Amsterdam in June 1997.
"The main operational features of ERM 2 may be summarised under four (4) points:
First, for each participating non-euro area currency, a central rate vis-à-vis the euro will be defined. Unlike the present ERM, there will no longer be a "parity grid."
The new so-called "hub-and-spokes" approach puts the euro at the centre of the system. Around the euro central rates, a standard fluctuation band of +/- 15% will be established.
This rather wide band reflects the good experience with the operation of the current ERM. It avoids offering "one-way bets" in periods of speculative pressure.
It also allows temporary deviations from the central rates to accommodate minor asymmetric economic disturbances.
The recent experience in the ERM has shown that central rates exert a strong magnetic force for exchange rates, thus contributing to avoiding misalignments.
In practice, exchange rate fluctuations have, for most currencies, proved to be even more limited than in the former 2.25% narrow band of the ERM.
This effect has been reinforced after the decision taken at the Mondorf Informal ECOFIN in mid-September to announce bilateral conversion rates in May 1998.
In summary, ERM2 is an asymmetric system, centered around the Euro.
There have been in the past many discussions concerning the asymmetric nature of the current exchange rate mechanism, and the desirability of this asymmetry.
I think that there can be no doubt that ERM2 will have to be asymmetric, given the Euro area's size and the stability-oriented policies that will be pursued in the euro area, in particular by the European System of Central Banks.
A second feature is that central rates and the standard wide band will be set by mutual agreement between all parties.
These parties are the Euro-area Finance Ministers, the ECB, and the Finance Ministers and central bank Governors of the non-euro area Member States participating in ERM2.
The European Commission will, as today, be involved in the procedure. All parties to the agreement, including the ECB, will have the right to initiate a procedure for reconsidering central rates.
This will ensure that any adjustment of central rates will be conducted in a timely fashion.
A third feature is that, as today, there will be automatic and unlimited foreign exchange intervention and financing when exchange rates reach the fluctuation margins.
The central banks participating in the agreement will retain the possibility of coordinated intra-marginal intervention, to be decided by mutual agreement in parallel with other appropriate policy responses.
Finally, there is the possibility to have closer links between non-Euro area NCBs and the ECB.
A non-Euro area Member State that has reached an advanced degree of convergence with the Euro area may request closer exchange rate co-operation. This may take various forms.
Okay, now we are getting somewhere.
It appears that my suspicions, by reviewing the world transits of the late 1990s, were correct. I remember that morning of June 16, with the Moon in Libra square to Neptune at 29-Capricorn, watching those dark clouds gathering ~ literally ~ over the very spot where the European Council was meeting.
At the time, the transiting Lunar Nodes were on the Pisces/Virgo axis, with the South Lunar Node at 23-Pisces in June 1997. This is exactly where transiting Jupiter is at now, with Uranus within orb, and at this time we see the Euro under stress.
In addition, looking at the June 16, 1997 transits for Amsterdam, we can see that Mars in Virgo then, is now being conjoined by transiting Saturn in Virgo, and, in opposition to transiting Jupiter in Pisces.
The progressed transits for this time to May show a Progressed Moon in Aries opposed to Chiron in Libra ~ this feature monetary stress, which is what the Euro zone is now encountering. By January 2013, the Progressed Moon of this time opposes Pluto, with more stresses on the Euro.
By April of 2014, during the month of the worldwide Cardinal Grand Cross, the Progressed Mercury of the June 1997 European Council Chart is square to its Progressed Saturn in Aries. At this time in 2014, the Euro will be 15-years old.
Should the sovereign debt crisis continue to get out of hand, it is my forecast that the Euro will be greatly weakened, thus increasing chances Germany may indeed return to their own currency, and issue a new Deutsche Mark ~ staying within the European Union, but effectively leaving the monetary union.
The Greek crisis has sparked an age-old clash between the EU's two biggest nations: France, and Germany. France, a republican countries that has a tradition of interventions, and a casual attitude towards public debt contrasts that of Germany, with it strict attachment to rules and frugality that comes from its own currency traumas.
This is understandable, since Germany, a nation that lost their savings twice in the 20th century ~ once to hyperinflation in 1923 with Uranus in Pisces, and again, to currency reform after the Second World War ~ holds tight to its principles of central bank independence and budgetary discipline. The very core of the German financial psyche.
“Germans fear going bankrupt themselves,” said John C. Kornblum, a former United States ambassador to Germany. "Paris and Berlin have had many disagreements in the postwar world, but few are as deep-rooted as those on economic governance."
In fact, my mundane view show that quiet talks have been already underway in Germany to do just that - return to the Deutsche Mark. If this occurs, then the Euro, as we know it today, is doomed.
Meanwhile, Congdon said economic figures prove even after deflationary stresses on Spain and Ireland, for instance, and the much wider effect of the Greek crisis on credit-starved banks in Europe, that there actually has been no growth in the European Central Bank’s money supply.
On May 23, Jupiter will oppose Saturn for the first time in 20 years on the Pisces/Virgo axis. This comes less than a month since the fourth Saturn/Uranus opposition of April 26th.
Then, by June 8, 2010, transiting Jupiter & Uranus will meet in conjunction at tropical 00-Aries ~ the seasonal point which is very sensitive to transits of the outer planets. Saturn is forming an opposition to both planets and Pluto in tropical Capricorn squares them all.
This is a "preview" conjunction which forms over the months of June, July, and August 2010, before both Jupiter and Uranus return back into the late degrees of tropical Pisces for their conjunction over the fall months, and into winter 2011.
In my February 2010 and subsequent forecasts, I warned about the inclinations and influences of the Cardinal Crisis transits.
These planetary configurations began to build right after the arrival of the new astrological year that occurred March 20, 2010, when the Sun entered Aries, and the Earth reached the vernal equinox.
What will be most notable about the build-up towards the Cardinal inclinations in 2010 are the frustrations, temper tantrums, hotheads, and impulsive behaviors amongst supposed adults that stem from within those who are immature to their very core.
The Cardinal Climax transits feature energies that will incline reactionaries to react badly.
One will observe that pettiness, impulsive acts and ignorance flowing from people who have what I call toxic personalities. Avoid them like the plague if you want to be happy, wealthy and wise.
- April 6-7 - Pluto stations retrograde at 5-Capricorn
- April 7, 2010 - Saturn re-enters tropical Virgo
- April 26, 2010 - Saturn opposes Uranus (4th opposition)
- May 23, 2010 - Jupiter opposes Saturn (first time since 1990-91)
- May 27-28, 2010 - Uranus enters tropical Aries
- May 30th, 2010 - Saturn stations direct motion
- June 5-6, 2010 - Jupiter enters tropical Aries
- June 6-7, 2010 - Mars enters tropical Virgo
- June 8, 2010 - Jupiter conjoins Uranus
- July 5, 2010 - Uranus stations retrograde at 0-Aries
- July 8, 2010 - Jupiter turns North in declination
- July 11, 2010 - New Moon total eclipse at 19-Cancer (not seen in N. America)
- July 21, 2010 - Saturn re-enters tropical Libra for good
- July 23, 2010 - Jupiter stations retrograde
- July 25, 2010 - Jupiter Squares Pluto
- July 26, 2010 - Fifth Saturn/Uranus opposition
- July 31, 2010 - Mars & Jupiter turn S in Declination
- August 3, 2010 - Jupiter, retrograde, Squares Pluto again
- August 6, 2010 - Venus turns South in Declination
- August 13-14, 2010 - Uranus re-enters tropical Pisces
- August 16, 2010 - Jupiter Opposes Saturn
- August 20, 2010 - Mercury retrogrades in Virgo
- August 21, 2010 - Saturn Squares Pluto
- September 8, 2010 - Saturn turns South in declination
- September 8, 2010 - New Moon at 15-Virgo
- September 8, 2010 - Venus enters Scorpio
- September 8-9, 2010 - Jupiter re-enters tropical Pisces
- September 12, 2010 - Mercury stations direct
- September 14, 2010 - Pluto stations direct
- September 14, 2010 - Mars enters Scorpio
- September 19, 2010 - Jupiter conjoins Uranus in Pisces
- October 8, 2010 - Venus stations retrograde in Scorpio
- October 18, 2010 - Jupiter conjoins Uranus in Pisces
I continue to state, as I have for years, that the decade of the 2010s will be akin to the Great Depression years of the 1930s, and will, in the long-run, lead to geopolitical tensions that will change the tone and character of the early 21st century.
Most of this will come about because people were not prepared, and did not make adjustments to meet the coming inclinations.
It also has occurred because policymakers, international bankers, speculators and those in industries like residential and commercial real estate allowed themselves to believe their own fantasies - with devastating consequences for tens of millions of people worldwide.
As I've written before, the strongest months of those of July, August, and September 2010 with August being the most powerful month under these powerful cardinal inclinations.
Travel is unfavorable. There are dangerous transits during the summer vacation season in the northern hemisphere. Accidents in and around bodies of water are highlighted, from the air, and on the high seas ~ perilous conditions exist that will lead to violent interactions, and in some cases, deaths involving large groups of people.
Stay close to home, and use the rest of 2010 to relax, and observe the cardinal transits in action through the world news.
Meanwhile, I would ask that everyone pray for the countries of the world now suffering under the crushing weight of the economic crisis, and that those responsible be brought to justice for causing what will amount to the Second Great Depression ~ the first one of the 21st century.
Some people may think that all of this is, rather, well, "melodramatic;" however, I continue to remind people that my outlook is that of a mundane astrologer, and that I maintain that these times, when looked back on years from now ~ will be seen as nothing less than historic.
So, I warn those taking events of the present times a bit too lightly that they are making a serious mistake in doing so. Again, foretold is forewarned.
It is not wise to shut one's eyes to what is taking place in the hope that it will go away. It will not go away. In fact, things are going to change evermore so in the weeks, months, and years ahead.