The Cardinal Crisis
The Economy, Wall Street & Housing Markets
Floods, Accidents & Violence
Top American General Outed By Rolling Stone?
England Unveils Deep Budget Cuts
The opening series of the Cardinal T-Square World Transits has now begun, and, as we can see up to this point in time, global events continue to correlate to the powerful planetary configurations relative to the Earth.
We have seen and confirmed repeatedly, time and again, through the lens of Mundane Astrology as it applies to world history and current global events.
I also continue to forecast that senseless violence, inclined by the configurations of the cardinal positions of the planets, should be guarded against with great caution, prudence and patience or things could get out of hand.
New leaders emerge on the scene as Australia wakes up to the news that it has its first female prime minister.
The economic crisis continues to make major news as England's new coalition government unveils its austerity package leading to calls from the opposition that it will destroy the social fabric of the nation. American Astrologer Jude Cowell presents her insights into England's deep economic cuts.
Meanwhile, giving in to haste and impulse of the cardinal inclinations, a top commander over the war in Afghanistan, which in June 2010 eclipsed Vietnam as the longest running war in American history, was suddenly ousted by President Barack Obama after disturbing reports about a general's comments were revealed by a rock-and-roll magazine.
As the world nears the first series of the Cardinal Crisis transits, I continue to forecast serious problems and accidents on the high seas, increasing flood events, and climate change leading to the arrival of La Nina during the second half of 2010 and into the first half of 2011.
The transits of the outer planets can be sparked by transits of inner planets. In the case of the Cardinal Crisis transits, we see increasing signs of senseless acts of violence throughout the world.
My advanced climate and weather forecasts for 2010 called for increasing floods throughout the world. This is especially the case due to the conjunction of Jupiter and Uranus, and the position of Saturn in the late degrees of tropical Virgo.
I forecasted back in 2009 that expanding floods would increase in 2010:
Raging Global Floods:
Floods Flatten Entire Town
150,000 People Marooned By Floods
Flash Floods Strike in France
Floods Hit Western Canada
Storms & Floods In American Midwest
Missouri River Floods Towns South of Omaha Metro
Report on the May 2010 Tennessee Floods
Death Toll From Myanmar Floods Hits 63
30 People Die in Ghana Floods
Floods Strike in Romania
Downpours Triggered Floods in Oklahoma
Magnitude 5.0 Earthquake Felt In Canada
A car sits overturned on a sidewalk in central Paris, France, June 23, 2010 following Algeria’s devastating loss to the United States in the World Cup, as 200 to 250 youths who had been watching the game on a giant screen at an inner-city stadium took to the streets. Shop windows were smashed and about 20 cars were incinerated or flipped over, among other incidents which spread to nearby neighborhoods.
Two Teens Stabbed To Death In The Bronx
Gang Members Burn Bus In El Salvador, Killing 14
Mass Violence in South Kyrgyzstan
Jamaican Government Extends Curfew After Drug Lord Captured
Violence Spreads In Chicago, Leaving 10 dead, 60 Wounded
California Restaurant Gunman Bent on Domestic Violence
Family Man Arraigned In Brutal Slaying Of His Family
Seven Afghan Construction Workers Killed By Bomb Attack
Hooded Men Shoot & Hack Four Commuters To Death In Philippines
Gunman Fire On Mexican Town Hall, Kill 3 Police Officers
Australian Tycoon's Plane Crashes in Congo, 10 Bodies Found
Plane Crash Kills 7 Near Quebec City
Chaos At Connecticut Airport With Passengers Stranded on Plane
Afghan Chopper Crash Kills 3 Aussies, 1 American
Death Toll Continues To Climb In Congo Train Disaster
Speeding Train Kills 13 Summer Solstice Revelers Crossing Tracks
15 Indonesians Missing In Boat Accident
However, there has been a "flash crash analysis" done on the New York Stock Exchange event that shocked world markets amid the sovereign debt crisis in Greece which then led to the near crash of the Euro and fueled an ongoing American federal investigation into stock market manipulation.
"Even as the idiots at the SEC mope about cluelessly; confirming they deserve not one cent of taxpayer money to fund their massively over bloated budget, and should all be summarily fired to collect tarballs in the Gulf of Mexico (and soon Maine.)
Our friends at Nanex have conducted an exhaustive analysis (must read for everybody concerned about market structure), in which they identify the various parties responsible for the market crash, and, drumroll please, High Frequency Trading stands at the pinnacle of culprits for the 1,000 point Dow drop.
What we discovered was a manipulative device with destabilizing effect."
Beginning at 14:42:46, bids from the NYSE started crossing above the National Best Ask prices in about 100 NYSE listed stocks, expanding to over 250 stocks within 2 minutes (See Part 1, Chart 1-b).
With NYSE's bid above the offer price at other exchanges, HFT systems would attempt to profit from this difference by sending buy orders to other exchanges and sell orders to the NYSE. Hence the NYSE would bear the brunt of the selling pressure for those stocks that were crossed.
Seconds later, trade executions from the NYSE started coming through in many stocks at prices slightly below the National Best Bid, setting new lows for the day. (See Part 1, Chart
If the quotes sent from the NYSE were stuck in a queue for transmission and time stamped ONLY when exiting the queue, then all data inconsistencies disappear and things make sense.
Charting the bid/ask cross counts for those two days reveals the same pattern as 5/6! Looking at the details of the trade and quote data on those days shows the same time stamp/price inconsistencies. The NYSE stated that during the same intervals, they were experiencing delays in disseminating their quotes!
In summary, quotes from NYSE began to queue, but because they were time stamped after exiting the queue, the delay was undetectable to systems processing those quotes.
This situation led to orders executing against whatever buy orders existed in the NYSE designated market maker (DMM) order book.
Because many of the stocks involved were high capitalization bellwether stocks and represented a wide range of industries, and because quotes and trades from the NYSE are given higher credibility in many HFT systems, when the results of these trades were published a few milliseconds later, the HFT systems detected the sudden price drop and automatically went short, betting on capturing the developing downward momentum.
Some trading firms have stated that they detected a problem with the accuracy of the data feed and decided to shut down which further reduced liquidity. We think the delay in NYSE quotes was at the root of this detection.
On the subject of HFT systems, we were shocked to find cases where one exchange was sending an extremely high number of quotes for one stock in a single second -- as high as 5,000 quotes in 1 second!
- Quote and trade data must be time stamped by the exchanges at the time it is generated. This will ensure delays can be detected by everyone.
Reasoning: Changing the procedure to time stamp at the time a quote or trade is generated is a near trivial exercise. It probably comes as a surprise to many that time stamping isn't done that way now.
- Quote-stuffing should be banned.
Reasoning: It is a manipulative device designed to overload the quotation system. Quote and trade dissemination (data feed) is a finite resource, and should be treated as such.
- Add a simple 50 millisecond quote expiration rule: a quote must remain active until it is executed or 50ms elapses. If the quote is part of the NBBO, it may be improved (higher bid or lower offer price) at any time without waiting for the expiration period.
Reasoning: The exchanges must protect the integrity of the National Best Bid/Offer system. What is the point of having a National Best Bid/Offer, if not everyone in your nation (apologies to Alaska/Hawaii) can reasonably execute a trade against it?
The Cardinal Crisis
Click On Graphic To Enlarge
~ The New York Times reports ~
"When the housing boom began to cool in 2006, an increasing number of homeowners began to fall into foreclosure; that is, lost ownership of their home or were threatened with it because of a failure to keep up with their mortgage payments.
That rise in foreclosure blew up the house of cards Wall Street had built around mortgages, leading eventually to the near-collapse of the financial system, the global recession and a drop in property values not seen since the Great Depression.
Four years later foreclosures were not only still wracking homeowners and communities, but actually continued to rise, despite several rounds of efforts by the federal government to break the cycle.
The waves of foreclosures have fed on themselves, since foreclosure sales can drive down the value of homes in the surrounding area, thereby making further foreclosures more likely.
And falling property values have sharply eroded the tax base of some areas, forcing spending cutbacks by state and local governments already hurting from the general economic slowdown.
In the first quarter of 2010, there were 930,000 foreclosure filings — an increase of 7 percent from the previous quarter and 16 percent from the first three months of 2009, according to recent data from RealtyTrac, an online marketer of foreclosed properties.
The surge seems to indicate that homes that were in the foreclosure pipeline are now being lost for good.
In March, the Treasury reported nearly 228,000 troubled loans qualified under President Obama's plan for long-term payment reductions; another 108,000 long-term modifications were pending.
Currently, some six million borrowers are more than 60 days delinquent.
Observers of the housing scene see three distinct waves in foreclosures:
The initial spike involved speculators who gave up property because of plunging real estate prices, and the secondary shock centered on borrowers whose introductory interest rates expired and were reset higher.
The third wave represents standard mortgages, known as prime, written to people who had decent credit ratings, but who have lost their jobs in the economic downturn and are facing the loss of homes they had considered safe.
Those sliding into foreclosure today are more likely to be modest borrowers whose loans fit their income than the consumers of exotically lenient mortgages that formerly typified the crisis.
It was said in 2009 that 60 percent of the mortgage defaults that year would be set off primarily by unemployment, up from 29 percent in 2008."
See Interactive Feature:
The Faces of Foreclosure
~ The GoldenTruth.com reports June 23, 2010 ~
'The Housing Market Appears To Be In Trouble'
Property manager Paul Martinez kicks in a tenant's door after no one answered the knock during an eviction in Colorado Springs, Colorado. The tenant said he was laid off from his job in a retail store and had fallen behind on his payments.
Credit: John Moore/Getty Images
This just in from Bloomberg: -- Sales of new homes collapsed last month, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer get government incentives."
The housing market is in full collapse.
Of course, The Golden Truth has been explaining why the housing market is in trouble since the absurd taxpayer subsidy of the housing market ended April 30th.
The Mortgage Bankers Association weekly mortgage applications index showed another steep decline last week, falling seasonally adjusted 5.9% from the previous week.
On a nominally calculated unadjusted basis, the purchase index dropped 2.3% (vs. 1.2% as adjusted) and has plunged 36.8% from the same week a year ago.
Here's the MBAA press release: OOPS.
And yesterday it was reported that existing home sales dropped 2.2% from April to May.
What is stunning about the nominal magnitude of the serial declines being reported for all aspects of the housing market is that this time of year is supposed to be the seasonally strong period for housing.
It can be argued with a high degree of credibility that Obama's taxpayer subsidy of the last year has served no purpose other than to "pull forward" home sales and prop up prices - both are unsustainable given the deteriorating underlying fundamentals.
The other big problem facing the housing market, and a problem which has had an incredible amount beauty salon treatment to the real numbers, is that the total inventory of homes building up in the system is massive.
American middle-class anger over banking corruption, foreclosures and double-digit unemployment continues to build into the Cardinal Crisis of summer 2010
When I say "total," I am including not only MLA listings, but also bank REO (foreclosed homes owned by banks) and homes currently in the foreclosure process.
Foreclosures hit a new record high last month, climbing an astonishing 44% from May 2009. Foreclosures increased in every State.
Not only that, but Zillow reported that a full 25% of all homes with mortgages are now worth less than the amount of the outstanding mortgage on the home.
I would bet good money that the real number is higher, as it is likely that - on average - owner-perceived and appraised home values are higher than actual market values. I would bet the number is more like 30%.
I have seen estimates that use this "total" inventory calculation that show the true inventory of homes out there to be 8 years, based on trailing twelve month sales rates.
But as we go forward and the rate of sales decline, obviously the number of years worth of inventory climbs even higher.
There's not much I can opine about this beyond what I've suggested in previous blogs.
So I'll will summarize this situation with a quote from the great Austrian economist, Ludwig Von Mises:
"There is no means of avoiding the final collapse of a boom brought about by credit expansion.
The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."Obama and Larry Summers can throw as much taxpayer money as they want at the housing market in order to buy votes.
But ultimately all this does is create a massive transfer of wealth from the middle class to the banks, real estate brokers and sellers of the homes.
Just like water eventually finds its own level, the housing market will eventually settle at a sales rate and price level which is substantially lower than where it is today.
Rest assured that the Govt/Fed will attempt to fight this process by printing massive amounts of money and creating even larger fiscal deficits.
But the process is doomed. The ONLY way to protect yourself from this is with gold/silver/mining stocks. I can only lead a horse to water..."
We can see in this next feature on Global Astrology how Afghanistan's top commander did not take this mundane advice, which then led to his disgrace and ultimate dismissal by President Barack Obama in a surprising, and sudden series of developments.
A General Dismissed With the Help of Rolling Stone?
Rolling Stone Magazine Story Causes Changes In Top Command: U.S. President Barack Obama, with Vice President Joseph Biden Jr., Gen. David Petraeus & Secretary of Defense Robert Gates, announced the removal of General Stanley A. McChrystal as top commander in Afghanistan on June 23, 2010, and the appointment of General Petraeus as his replacement to lead the war effort there.
Credit: Doug Mills/New York Times
~ The New York Times reports June 23, 2010 ~
By Helene Cooper & Jack Healy
Mr. Obama, standing with General Petraeus and Vice President Joseph R. Biden Jr. in the White House Rose Garden to underline the continuity and solidity of his Afghan policy, said that he had accepted General McChrystal’s resignation “with considerable regret.”
Mr. Obama said he had done so not out of personal insult over a magazine article featuring contemptuous quotes from the general and his staff about senior administration officials, but because it showed the general had not met standards of behavior for a commander, which threatened to erode trust among administration and military officials, as well as undermine civilian control of the military.
“War is bigger than any one man or woman, whether a private, a general or president,” Mr. Obama said. “As difficult as it is to lose General McChrystal, I believe it is the right decision for our national security.”
“I welcome debate among my team,” he said, “but I won’t tolerate division.”
General Petraeus, who holds overarching responsibility for the wars in Iraq and Afghanistan as the head of the United States Central Command, would be required to leave his current post to take on his new appointment, which must now be confirmed by the United States Senate.
Mr. Obama stressed that the change in leadership did not signal a shift in his overall war strategy in Afghanistan, where thousands of new American troops have been arriving in recent months among increasing casualties and growing questions about the progress of the war.
“This is a change in personnel, but it is not a change in policy,” Mr. Obama said.
The reshuffle injected new uncertainties into relations between the United States and the Afghan president, Hamid Karzai, who had urged American leaders to let General McChrystal remain in place.
“We are not opposing his successor, but we would prefer that General McChrystal come back,” Ahmed Wali Karzai, the influential half brother of Mr. Karzai, said earlier Wednesday, suggesting that the Afghan government was realistic about the possibility that General McChrystal would be replaced.
General McChrystal had proved to be one of the few Western leaders who could work well with President Karzai, building trust and traveling to tribal meetings with him, and personally apologizing when Western military actions resulted in major civilian casualties, which have been a source of deep anger for Afghans.
In a brief statement, General McChrystal said he supported the strategy in Afghanistan and had resigned out of a “desire to see the mission succeed.” His dismissal did not alter his rank, but it was unknown what role he would next play in the Pentagon, if any.
General McChrystal and Mr. Obama met for about 20 minutes earlier in the day, after the general flew from Afghanistan to Washington on Tuesday amid a growing furor over the article, which Rolling Stone magazine posted on its Web site on Tuesday after it had leaked to other news outlets.
The article quoted General McChrystal and his aides speaking critically of nearly every member of the president’s national security team, dismissing Vice President Biden as “Bite Me”; calling the national security adviser, Gen. James L. Jones, a “clown”; and disparaging other top officials.
Former Afghanistan Top American Commander Gen. Stanley A. McChrystal
Credit: Luke Sharrett/New York Times
The firestorm over the article was fueled by increasing doubts — even in the military — that Afghanistan can be won and by crumbling public support for the nine-year war as American casualties rise.
The remarks also laid bare the disarray and enmity in a foreign policy team that is struggling with the war.
In replacing General McChrystal, Mr. Obama decisively showed that he remained the ultimate decision-maker on military matters and would not tolerate insubordinate behavior or internal rifts among his top officers.
But the decision also invited criticism that Mr. Obama was shaking up his military command at a crucial moment in the conflict, when coalition forces are preparing to try to take control of the country’s second-largest city, Kandahar, the spiritual home of the Taliban.
Beyond that, Mr. Obama’s war strategy is in many ways a McChrystal strategy. The general devised the plan, which called for thousands of extra troops to fight the insurgency and, perhaps more important, create a sense of security for the Afghan people.
But Mr. Obama said the mission in Afghanistan, where the United States now has more than 90,000 troops, remained unchanged by General McChrystal’s removal. “We have a clear goal,” Mr. Obama said.
“We are going to break the Taliban’s momentum. We are going to build Afghan capacity. We are going to relentlessly apply pressure on Al Qaeda and its leadership, strengthening the ability of both Afghanistan and Pakistan to do the same.”
The Afghanistan team has suffered many internal conflicts, including complaints from the American ambassador, Karl W. Eikenberry, about Richard C. Holbrooke, the special representative for Afghanistan and Pakistan.
In one episode that dramatized the building animosities, General Jones, the national security adviser, wrote to Ambassador Eikenberry in February, sympathizing with his complaints about a visit Mr. Holbrooke had recently made to Afghanistan.
In the note, which went out over channels that were not secure, officials said, General Jones soothed the ambassador by suggesting that Mr. Holbrooke would soon be removed from his job.
The Jones note prompted Secretary of State Hillary Rodham Clinton to complain to Mr. Obama, and her support for Mr. Holbrooke has kept him in his job.
The infighting has been made more severe by the increasingly perilous situation on the ground. Violence in Afghanistan is on the rise.
The mission to pacify Marja and Kandahar is far off track. And the effort to create a viable Afghan government is increasingly in doubt because of widespread corruption.
Criticism is mounting on Capitol Hill, even among the president’s backers, and many allies have announced that they are looking for the exit, with others expected to do the same in the coming months.
There has been vigorous debate within the administration about how to proceed in Afghanistan, but in the article General McChrystal and his aides did not overtly criticize administration policy.
Rather, the differences revealed were personal. One administration official described Mr. Obama as being particularly furious at a characterization of him in the article as not seeming “very engaged” during that first White House meeting.
A General's Nunchucks: General McChrystal carries a custom-made set of nunchucks in his convoy engraved with his name and four stars. His itinerary often bears a quote from the late Bruce Lee: "There are no limits. There are only plateaus, and you must not stay there, you must go beyond them."
Credit: Mikhail Galustov/Rolling Stone/Redux
Over all, the article depicted General McChrystal at the head of a small circle of aides engaged in what came close to locker-room trash talk as they discussed foreign policy, the French, their allegiance to one another and their own concerns about course of the war.
The civilian communications adviser who set up the interview, Duncan Boothby, has resigned."
The Cardinal Crisis
A Volcano, Rolling Stone Magazine & A Blunt General?
General McChrystal walks towards a helicopter at Bagram Airfield, Afghanistan in May 2010.
Credit: Mikhail Galustov/Rolling Stone/Redux
By Jeremy W. Peters
New York Times
June 22, 2010 -- Of all the questions surrounding the Rolling Stone article that detailed Gen. Stanley A. McChrystal’s surprisingly blunt criticisms of the Obama administration, few are as puzzling as this:
Why would a top military commander allow a journalist so much unfettered access to his inner circle?
The answer, it seems, is a volcano.
Michael Hastings, the freelance journalist who wrote the bombshell article about General McChrystal’s displeasure with the war effort in Afghanistan, was with the general and his staff in Paris in April as the Eyjafjallajokull volcano erupted in Iceland, forcing the closing of airspace over most of Europe.
As a result, Mr. Hastings waited in Paris with the general and his staff as they tried to get to Berlin by bus.
Mr. Hastings traveled to Berlin separately. He later rejoined the general’s inner circle at the Ritz-Carlton hotel there, where they all spent the week waiting for the ash cloud to clear so they could fly to Afghanistan.
“I was so amazed by it myself,” Mr. Hastings said in a telephone interview from Kandahar, Afghanistan, where he is now reporting on another story for Men’s Journal.
“At times I asked myself that question: Why are they giving me all this access?”
Though Mr. Hastings said that most of the eyebrow-raising comments in the article came from the general during the first two days in Paris, he found him and his staff to be more welcoming as time went by.
Initially, Mr. Hastings was not scheduled to travel with General McChrystal to Afghanistan.
Only after he arrived in Europe did Mr. Hastings learn that the general’s staff was eager to take him with them. “They suggested the idea,” Mr. Hastings said.
Mr. Hastings ended up spending about a month on and off with the general and his staff while they were in Afghanistan — most of the time in settings and interviews that the general allowed to be on the record.
“The amazing thing to me was that no ground rules were set,” Mr. Hastings said.
Rolling Stone’s executive editor, Eric Bates, said he also found General McChrystal to be surprisingly willing to vent his grievances.
“I think there’s an enormous frustration there where they feel like people don’t get it,” Mr. Bates said.
“And that seeps through into a lot of those quotes. They feel that the people who are supposed to be working with them aren’t working with them or don’t understand what the strategy is.”
Asked whether he believed that General McChrystal let his guard down because it was Rolling Stone, a publication devoted primarily to pop culture and the music business, Mr. Bates said it would not be the first time a political figure opened up to the magazine.
General Stanley McChrystal prepares his meal at the International Security Assistance Force headquarters in Kabul, Afghanistan. The general become known for sleeping just four hours a night, running seven miles each morning and eating one meal a day.
Credit: Mikhail Galustov/Rolling Stone/Redux
“In their mind, I think people sometimes forget how much reporting is in the DNA of Rolling Stone,” he said.
“And there’s some glamour attached to the name. I don’t know at all if that was the case here. But in general, I’d say that sometimes people are excited to be in the magazine.”
Though word of the article began to trickle out on Monday night, Rolling Stone did not post it on its Web site until around 11 a.m. on Tuesday.
But that was not nearly fast enough for the lightning-speed needs of the 24-hour news cycle. Politico and the Web site of Time magazine posted PDF files of the article on their Web sites before Rolling Stone could get its own article up. Rolling Stone asked them to remove the PDFs.
Will Dana, the magazine’s managing editor, said that the magazine did not always post articles online because it could make more money at the newsstand and that when it did, the articles were typically not posted until Wednesday. But other news organizations made that decision for him."
Global transits continue to show the power of Jupiter and Uranus as they transit tropical Aries and oppose Saturn with the three planets squared by Pluto In Capricorn.
The sudden entry of new leaders emerging unexpectedly on the world scene after gaffes and internal strife leads to swift and immediate change.
Consider this event out of Australia:
Kevin Rudd Dumped?
Australia's first female Prime Minister Julia Gillard. She will lead Australia's government to fresh elections due within months
Credit: Parth Sanyal/Reuters
~ The British Telegraph reports June 24, 2010 ~
'Australia has its first female prime minister after Kevin Rudd stood down on Thursday, handing over leadership to his deputy Julia Gillard.'
By Bonnie Malkin
Sydney, Australia-- Mr Rudd was convinced to step aside after it became obvious during an emergency caucus meeting that he did not have the support of enough MPs to continue serving as prime minister.
The British-born Ms Gillard was reportedly backed by at least 75 of the Labour Party's 115 MPs, sending a clear and emphatic message to Mr Rudd that it was time to go.
The threat to Mr Rudd's leadership emerged on Wednesday night, after senior Labour power brokers told him that he had lost their support and Ms Gillard revealed that she would challenge him.
The prime minister was urged to step down, but a defiant Mr Rudd announced that he would go to a vote.
Uranus In Aries Strikes Again: Former Australia Prime Minister Kevin Rudd won a landslide election victory less than three years ago, but then suffered a recent plunge in opinion polls. On June 24, 2010 he is suddenly ousted by his own Party.
After a night of frantic phone calls to gauge support, Mr Rudd decided not to stand against Ms Gillard, handing her the prime ministership unopposed.
The move against Mr Rudd came amid fears that he could not win an election later this year, and hopes that Ms Gillard, who is seen as more voter-friendly than the rage-prone Mr Rudd, had a far better chance.
Ms Gillard is considered to be a consummate political performer, and is viewed by the public as warm and trustworthy.
Born in Barry, Wales, her family came to Australia as "Ten Pound Poms" in 1966. She became engaged in politics at university, while training to be a lawyer, and entered parliament in 1998.
However, there is no guarantee that Ms Gillard's move to take charge of the party will put and end to Labour's problems. Ms Gillard was part of Mr Rudd's "gang of four", a small group of MPs consulted by Mr Rudd over policy issues.
She had a hand in the scrapping of the emissions trading scheme, which infuriated the electorate and could leave her tarred with the same brush as Mr Rudd.
The political violence of the past 24 hours is also expected to badly damage and divide the party, and further anger voters just months from an election.
The leadership spill comes amid increasing public frustration with the government.
The Labour Party has a primary vote of just 35 per cent, with the Liberals polling 40 per cent.
The dire outlook for Labour was triggered a series of unpopular decisions made by Mr Rudd, including the announcement in April that the government was shelving its flagship emissions trading scheme.
Mr Rudd was also embroiled in a high profile fight with the mining industry over his planned 40 per cent super profits tax on resources."
England Unveils Emergency Austerity Plan
By John F. Burns & Landon Thomas Jr.
LONDON — June 22, 2010 -- Setting the scene for years of potential strife with the powerful public-sector unions and their allies in the Labour Party, Britain’s new coalition government on Tuesday unveiled the most severe package of spending cuts and tax increases since the early days of Margaret Thatcher’s era.
After only six weeks in office, the government of Prime Minister David Cameron took what his coalition of Conservatives and Liberal Democrats acknowledged was a historic gamble: that austerity measures will help balance the government’s books without pitching the country into a double-dip recession.
British Prime Minister David Cameron
The cuts and tax increases, including average budget reductions of 25 percent for almost all government departments over the next five years, will make Britain a leader among European countries, including Ireland, Greece and Spain, competing to show they can slash spending and appease investors worried about surging debt.
But the sharp reductions defy conventional economic wisdom, which holds that governments should increase spending to stimulate growth when the private sector is weak.
The steps outlined to the House of Commons by George Osborne, the chancellor of the Exchequer, would cut the annual government deficit by nearly $180 billion over the next five years, shrinking Britain’s public sector and instituting tough reductions in public housing benefits, disability allowances and other previously sacrosanct aspects of the country’s $285 billion welfare budget.
Only health and international aid spending would be protected from the 25 percent cuts for government departments by 2015, the steepest fiscal spending reductions since the 1930s.
Mr. Osborne also announced a two-year wage freeze for all but the lowest paid among Britain’s six million public servants and a three-year freeze on benefits paid to parents for rearing children, in addition to new medical screening for people claiming disability benefits, part of a bid to cut $16 billion from the annual welfare budget.
George Osborne, British Chancellor of the Exchequer, holds England's emergency budget brief as he left 11 Downing Street for the House of Commons on June 22, 2010.
Mr. Osborne also announced a raft of tax increases, though he was at pains to say that the government’s plan to sharply reduce the country’s $1.4 trillion national debt would rest on making roughly four pounds in spending cuts for every pound in tax increases, a point of considerable political weight in a country that is already among the highest-taxed in Europe.
The new taxes include an increase next year to 20 percent from 17.5 percent in the value-added tax on most goods and services, and an increase in the capital gains tax, to a new high of 28 percent, to curb what Mr. Osborne described as rich people in Britain “paying less tax than the people who clean for them.”
At the same time, changes in income tax will remove nearly 900,000 of Britain’s poorest people from the income tax system altogether, and corporate taxes will also be reduced over a five-year period, to 24 percent from 28 percent.
“I am not going to hide the hard choices from the British people,” Mr. Osborne said in a speech in which he accused the former Labour government of understating the impact of its 13 years of deficit spending.
But he said the new coalition government, which should have little difficulty enacting the new measures with its Parliament majority, had striven to make the austerity fair.
“Over all, everyone will pay something,” he said, but the poor would pay less than the rich.
The concerns about the budget stringency seemed likely to reverberate well beyond Britain, pitching the Cameron government squarely into the political and economic dispute about the best way to navigate world economies out of the worst recession since the 1930s.
Last week, President Obama wrote to the leaders of the so-called Group of 20 nations, including Britain and other major economies, saying that while “credible plans” to cut national deficits were important, cutting them too quickly could lead to “renewed hardships and recession.”
U.S. President Barack Obama
Obama's letter was seized upon by Cameron government’s opponents in Britain, who cited it on Tuesday in condemning the Osborne budget.
“It’s back to the economics of the 1930s,” Ed Balls, a left-wing Labour figure who is one of five candidates running to succeed the former prime minister, Gordon Brown, as Labour leader, said in a BBC interview.
But the Conservatives believe they can repeat the Thatcher-era revival, when sharp budget cuts — even during a recession — restored market confidence in Britain’s future and helped spark a strong economic expansion through the decade.
Mr. Osborne, at 39 the youngest person in more than a century to preside over Britain’s public finances, said the cuts were made necessary by years of Labour profligacy. “We’ve had to pay the bills of past irresponsibility,” he said.
Savage Budget Cuts? George Osborne, British Chancellor of the Exchequer (standing) delivers his first Emergency Budget to Parliament as deputy prime minister Nick Clegg (yellow tie) and British Prime Minister David Cameron (light blue tie) sit behind him in the House of Commons June 22, 2010.
Calling the new measures “reckless,” Labour Party leaders, still nursing their wounds from their May defeat, appeared to be readying for a rerun of the bitter politics of the Thatcher years, when Britain was hit by widespread labor strife.
“Greece is no alibi,” Harriet Harman, acting leader of the Labour Party, said in her House of Commons reply to Mr. Osborne, referring to the financial meltdown there this spring that prompted a huge international bailout.
Acting Labor Party Leader Harriet Harman gave a scathing rebuke on the austerity plan, saying it would throw more people out of work and England into economic & social chaos.
Over the weekend, Mr. Osborne said in a television interview that unless Britain took radical steps to reduce its $1.4 trillion debt it would be “on the road to ruin” like Greece.
Ms. Harman said the measures were not a necessity forced on the new government by Britain’s parlous national finances, but an ideological choice to promote the traditional right-wing interests of the Conservative Party.
Many details of the austerity plan will not be made public until the fall.
Here is what is known to date:
- VAT to rise 2.5% to 20% from January 2011
- Deficit reduced 77% by spending cuts, 23% by tax rises
- Departments face cuts of 25% over the next five years
- Two-year pay freeze for public sector workers earning over £21,000
- Child benefit frozen for three years & tax credits cut
- Disability benefit claimants face new medical checks
- Corporation tax cut from 28% to 24% over four years
- Capital Gains Tax hiked to 28% for top-rate taxpayers
- Bank levy from 2011, raising £2bn a year
- Income tax threshold raised £1,000 to £7,495
- Pension link to earnings restored or 2.5% rise from next April
- Civil list frozen at £7.9m as Queen also feels the pinch
Click on Graphic To Enlarge
But the most politically untouchable outlays, the $150 billion budget for the National Health Service, Britain’s 60-year-old nationalized medical care system, have been “ring-fenced,” in accordance with Conservative pledges in the election to make annual increases.
Concern among the cuts’ opponents has centered on the annual budgets for schools, universities and defense, an $85 billion cost that is scheduled for sharp cuts despite Britain’s deep involvement in the war in Afghanistan.
Financial markets have so far given a thumbs-up. The pound stayed steady against the dollar, closing on the currency markets in Britain and the United States at, or slightly above, the level at which it closed on Monday.
Over the longer term, the main significance of the budget may be judged to be the signal it gave that the Cameron government is prepared to wage a political war to reduce the size of the public sector in Britain, which expanded rapidly under Labour.
During that time, more than one million jobs were added to the public payroll, and the public sector accounted for roughly half of the economy.
Mr. Osborne made no secret of the government’s intentions. “A genuine and long-lasting economic recovery must have its foundations in the private sector,” he said. “That is where the jobs will come from.”
American Astrologer Jude Cowell, In Her Excellent 'Stars Over Washington' Site, Says Of England's Austerity Plan:
Austerity Cuts A Huge Mistake: Pluto In Capricorn
"This morning I awoke to BBC's reporting of a morning announcement in London of 'austerity cuts' against the good people of the UK and if some had their way in the U.S. we'd be - and probably will be - on the same 'make-things-worse road' as FDR set us on in 1937.
Why, it's almost as if governments want things worse for the people and aren't trying to 'recover' financial systems at all!
Well, they do if all the sky-falling voices are correct (like mine) and the entire 'collapse' is an orchestrated charade that's intended to collapse the global economy so that totalitarianism can have its way with us and a long-planned one-world-government can be instituted.
Such is transformative Pluto traversing governmental Capricorn as in 1776 when America was founded as the 'new world government' on the block - and now Mr. Hades is destructuring governments again.
That nationalist governments must fail is a priority for the power elite's New World Order movers and shakers and if individuals fail in the process, too bad - you're merely collateral damage in the class warfare now being waged.
What's also too bad is that so few citizens of the U.S. and elsewhere have taken seriously the warnings about class warfare putting targets on their backs which have been given to anyone who would listen since (at least) the 90s.
Successful propaganda campaigns against such heralds of doom have been used to make 'conspiracy theorists' appear to be wacky and off the mark.
Yet in most cases, we, dear reader, are not. Plus, even wacky folk can be right part of the time. I proudly count myself among their number.
Well, perhaps you caught Paul Krugman's June 19 article That 30s Feeling which agrees that austerity cuts will do more harm than good so here's its link for you, just in case.
And though it's true that Mr. Krugman won't mention anything to you about Pluto, Capricorn, or the tearing down of current forms and institutions to make way for a much-promoted yet already-lamented-by-the-people NWO, it's okay because I just did.
We must remember that that's why the power elite has worked for decades to knit all financial systems into a world network in the first place - so that the financial collapse with its subsequent governmental failures would be global when they get ready to pull the final plug."
- 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 at 27-Virgo
- June 5-6, 2010 - Jupiter enters tropical Aries
- June 6-7, 2010 - Mars enters tropical Virgo
- June 8, 2010 - Jupiter conjoins Uranus at 0-Aries
- 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
- July 31 - Mars conjoins Saturn at 0-Libra
- 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 for first time in Pisces
- October 8, 2010 - Venus retrograde in Scorpio
- October 29-30 - Venus turns to "morning star" phase for ten months
- November 6, 7, 2010 - Neptune direct in motion
- November 18 - Venus stations direct
- November 18 - Jupiter stations direct
- December 5, 6- Uranus stations direct motion
- December 10-30 - Mercury retrograde
- January 4, 2011 - Jupiter conjoins Uranus a third time
- January 22, 2011 - Jupiter enters Aries
- Jan. 25, 26 - Saturn stations retrograde 17-Libra
- February 25, 2011 - Jupiter Squares Pluto
- March 3, 2011 - Transiting Lunar Nodes shift to Mutable Quality of Sagittarius & Gemini
- March 11-12, 2011 - Uranus enters Aries (first time in 84 years)
- March 28, 2011 - Jupiter opposes Saturn
The internal battles in Greece because of heavy sovereign debt and deep austerity will re-ignite over the summer months of 2010.
Nature Erupts: Volcanic activity as Uranus enters Aries.
That 1,000 point drop: May 6, 2010 proved to be one of the strangest days in the history of the Dow Jones. A mysterious "1,000-point" plunge in the afternoon hours, blamed on a "fat finger," lost money for tens of thousands of traders and nearly collapsed the stock market. Federal authorities investigate, but the "glitch" still has not been explained nearly a month later.
The year 2011 is the start of a new cycle, mainly brought on by the official entry of Uranus into Aries, the first time in 84 years.
~ Mundane Review: 2010-2015 ~
There are six (6) major transits of the Cardinal Crisis Years - signified by the planets involved & their inclinations:
- Saturn oppose Uranus -
Much cooperation is needed to avoid falling into the unfavorable inclinations of Saturn's opposition to Uranus.
Extreme viewpoints expressed by the ignorant and mentally ill fall under this influence. Loud public pronouncements shouted with wild mannerisms expressing inconsistent attitudes can be observed.
Common sights are: bugged-eye pundits uttering unsubstantiated personal opinions as facts; personal attacks, insults, and acerbic comments designed to bring attention to oneself.
Impulse, haste, snap judgments, immaturity, poor communication skills lacking any sign of social grace and basic manners can be observed.
There is widespread conflict between the old order and the new emerging order. This is generational.
Concepts and ideas in economic, business and political affairs tend to be impractical, unreliable, and eccentric. Economic life continues to run at a low ebb.
Saturn's opposition to Uranus is unfavorable when dealing with joint accounts, finances, corporate business affairs, inheritances, insurance, and all economic matters important to organizations, groups, and individuals.
Selfish motives within organizations, and groups tend to be those where others try to take credit for the work of others in order to advance their own careers leading to estrangements between associates, colleagues and friends.
The will power of those involved in personal and professional intrigues is heightened to the point of very negative inclinations with some people using coercive methods to achieve what they perceive as success.
Under Saturn/Pluto this can feature acts of blackmail, threats, and plots at the highest levels of government, within political groups, and corporations.
Paranoid individuals with extreme opinions, and viewpoints is also common under A Saturn/Pluto square.
Some individuals will find themselves battling against corruption and rampant dishonesty within organizations, or within associations, be they professional or personal with attacks on their reputation coming as a result of fighting dishonest persons and groups.
The coming revelations of widespread corruption in global financial markets, on Wall Street, and other stock markets will be under the Saturn/Pluto square.
Corporate power plays take center stage under the cardinal crisis transits with increasing political pressure and regulatory scrutiny on major banks, insurance companies, and those implicated in widespread financial malfeasance over the last decade.
The focus on these areas: unemployment, insurance, housing, stock markets, hedge funds, secret bank accounts, general economics, political and government affairs, alimony, and inheritances - is all common under the influences of Saturn's square from Libra to Pluto in Capricorn.
It is also common under these inclinations for opposing groups and individuals to use negative, dishonest, and evil means to obtain personal/profession advantages over others; or attempts to hide past acts of malfeasance to avoid implicating others involved in acts of corruption.
This often backfires under the Saturn/Pluto square and results in public scandal along with damage to the reputation and the careers of those who used negative means to gain what they "perceive" to be an advantage.
Nowhere does "do unto others as you would have them do unto you' applies more than under a Saturn/Pluto world square.
The effect on personal and professional connections can be long-lasting with people completely breaking off any further association with friends, family and colleagues.
Power struggles - both internal and external - is a main theme of a Saturn/Pluto Square.
Often, decisions are based on perceived "associations" with others who are not one's friends, nor who share one's common interests, except to advance their own personal interests while using others as a means to and end. Very common under Saturn's square to Pluto.
After the square aspect passes, the events which have taken place under its influences are fully revealed, leading to permanent estrangements from those once trusted and valued as friends, associates, or lovers.
Saturn's continued transit through Libra (2010-2012) then features a full distrust and estrangement from those who used dishonest means during the Saturn/Pluto inclinations.
The Jupiter/Pluto Square acts much like that of Saturn's square to Pluto. Jupiter's motion into Aries in mid-2010, and then again in February 2011, will square Pluto in tropical Capricorn.
The same kinds of conflicts under Saturn's influence by square to Pluto comes into action with hasty, impulsive and headstrong promotion of one's opinions as facts to gain a perceived advantage over others.
Rampant litigation under Jupiter's inclinations lead to a rush toward legal wars without first seeing the bigger picture. With the Jupiter square to Pluto: it is the forest first, the trees second, but do make sure you count each tree.
The contradictions of this is simple:
Often, this comes about because of ego, and headstrong acts featuring arrogance and pride; but wholly failing to take into account the small, but very important details.
The only way to neutralize this transit, as with all the others of the Cardinal Crisis transits is to slow down, and to be strictly honest at all times in all personal and business affairs.
Also, the need to remain detached and practical while plodding step-by-step without ego, impulse, and haste. This is the antidote to the impulsive inclinations of cardinal transits.
Power-plays, and forced acts of coercion, with promotions of extreme expressions of personal, political and religious viewpoints is quite common under this global square.
Often, one's aspirations to remake others comes with neglecting one's own house while confused attitudes about ethics and morality are cast aside in favor of haste and impulse - rushing to judgment.
Struggles with corrupted individuals and groups is also common under a Jupiter/Pluto Square.
Pisces/Aries - Virgo/Libra
Jupiter at 0-10 degrees Taurus
Such will be the case with the 2010-2012 opposition of Jupiter/Saturn. During these oppositions expect business to suffer as the generational transition continues over the course of Jupiter's opposition to Saturn.
Because of the poor economic climate some people may resort towards using questionable tactics to get ahead and make money.
The desired expansion of business is fraught with frustration after frustration, red-tape, barriers, blocks, delays, and legal problems. Rising defaults & bankruptcies increase as a result of past mismanagement of resources and corruption with credit conditions tighter than normal.
The crush of competition, fighting for a limited amount of customers, with resources lacking can further cause disruptions in professional and personal lives to the point of some leaving entire industries for good.
It is a poor time to seek favors from others, as the business climate of 2010-2012 will continue to suffer from immense commercial & residential real estate losses, double-digit unemployment, and a general sense of malaise from an aging generational establishment.
Those seeing support from official institutions, such as federal, state, and local agencies, may find themselves frustrated with the lack of help usually expected from these offices.
While this takes place, many people will see their own personal and professional responsibilities increase; while wages continue to stagnate from the lack of resources, which will be limited because of prior economic corruption and waste.
The opposition of Jupiter to Saturn can test what the true balance really is between being optimistic, and being pessimistic. Much will depend on the ability of the individual to be creative, and patient, while the opposition is underway.
Many of these people will be older, and due to the transit of Saturn, will exhibit rigid views without realizing that in a short period of time after the opposition has waned and passed; that they themselves will receive similar treatment from the very people whom they denied opportunities and relief.
The conflicts which come about during 2010-2012 under the Jupiter/Saturn opposition will tend towards ethics; morals; joint finances, family responsibilities, friendships, associations, romantic relationships, partnerships and corporate struggles that will test the reliability and strength of relationships in general.
The Jupiter/Saturn opposition will begin to weaken in February 2012, and by the end of March 2012, will move out of orb.
- 25º Libra - "The sign of an autumn leaf brings to a pilgrim the sudden revelation of the mystery of life and death."
- 26º Libra - "An Eagle and a large White Dove Turning into each other."
An unprecedented Seven (7) exact squares occur in just three (3) years: 2012 to 2015
(*) = significant dates
1. June 24, 2012 – first global square at 8-degrees Aries/Capricorn
2. *September 18-19, 2012 – second square at 6-degrees Aries/Capricorn
3. May 20, 2013 – third square at 11-degrees Aries/Capricorn
4. November 1, 2013 – fourth square at 9-degrees Aries/Capricorn
5. *April 21, 2014 – fifth square at 13-degrees Aries/Capricorn
6. December 14-15, 2014 – sixth square at 12-degrees Aries/Capricorn
7. *March 16-17, 2015 – seventh global square at 15-degrees Aries/Capricorn
The last time Uranus and Pluto met in global square aspect was during the 1930s. This was a decade of reactionary, extreme right-wing politics, revolutionary socialism, rising crime, rebellions, revolts, and restrictive laws gradually reducing freedoms throughout Europe and the then-Soviet Union.
The Bank Crisis and Stock Market Crash of 1929-33 fueled the early years of the Great Depression with rising waves of petty crime and bank robberies. The resulting foreclosures of homes, businesses and family farms amid a depressed global economic system cast a dark shadow over the world.
The NYSE reaching its lowest trading point in history. Weather anomalies under the influence of Uranus in Aries led to the hottest year in U.S. history in 1933-34 with drought and dust storms raging across the American Midwest.
Meanwhile, political extremism ensued with the rise of tyrants, as Adolf Hitler rose to power in Germany while in Japan, radical forms of militarism spread so much that it was being openly taught in elementary and high schools.
The revolts, rebellions and revolutionary sentiments under the Uranus/Pluto squares thus paved the way for the Second World War that followed by the end of the 1930s.
Uranus in Aries and Pluto in Capricorn revolve their squares worldwide for much of the 2010s, but the most powerful periods are between 2012 through 2015.
This is a time of great upsets within nations which have now experienced at least four to seven years in the wake of the global economic crisis.
Uranus' penchant for sudden change against Pluto's desire structure in Capricorn for a kind of transformational war that butt heads over the "kinds" of new changes to be realized and those not to be supported.
While this is happening, populations around the world seem to have had it to their chins with the constant disruptions of their lives; the losses of lifestyles over the years.
Groups, organizations and individuals have become radicalized by the events since 2008. So much so, that by the time (June 2012) of the first of seven exact Uranus/Pluto square social unrest is a certainty in regions around the world.
There are increasing signs of rebellions, revolts and foreboding examples of revolutionary sentiments expressed in various nations upset with the status quo, represented by Pluto in Capricorn.
The headstrong inclinations of Aries, with Uranus in it's 7-year transit in this sign, squaring Pluto can indicate sudden deaths coming about unexpectedly; usually through acts of violence, and from common accidents, and unexpected large-scale disasters related to weather extremes.
Past associations, friendships and relationships can become radically changed under Uranus and Pluto's cardinal squares. It is at this time, between 2012-2015 that companies that were hanging on by a thread financially - can suddenly break and fall into bankruptcy.
The entry of Neptune into tropical Pisces in February 2012 will impress dissolution on failing companies afterward, with a slow, but gradual death into the mid-to-late 2010s.
The sudden losses associated with Uranus' transit in Aries can bring about greater financial losses than expected while corporations continue to witness power struggles as the generational transition picks up speed in the early to mid-2010s.
The revolutionary sentiments inclined by Uranus/Pluto come about as a result of the frustrations of the decade of the 2000s.
The global economic crisis, and the resulting societal effects have angered many populations who feel that their governments and representatives were not representing them, but corporate monied-interests that pilfered society's resources.
The resulting backlash featured under the Uranus/Pluto squares of the 2010s will be widespread, and quite unsettling for those involved in the mismanagement of trillions of dollars and euros over the previous decade.
Rising crime can be a problem; also fueled by the lack of resources because of the Banking Crisis of 2008-2012.
State officials, under pressure financially, are forced to release thousands of prisoners in the early 2010s to relieve the system from overcrowding.
If there has been little reform of the system during the time of incarcerations, then obviously the lingering effects of the economic crisis that awaits convicts on the street can be a threat to public safety under the Uranus/Pluto squares.
By the spring of 2014, things become quite tense again globally with another Cardinal Cross - this time a Grand Cross configuration featuring Mars, Jupiter, Uranus, and Pluto in the Signs of Libra, Cancer, Aries and Capricorn.
Grand Cross configurations in cardinal signs seek immediate release of strong, emotional pent-up energies.