FINANCIAL UPDATE
March 2008

There is little doubt that the inflation and recession that I have been predicting for the past several years is upon us, no matter what the Talking Feds say. Below is a brief and condensed outline of the astrological configurations that have led us to this point. I discuss this all at length on my website and in my lectures, which will soon be available on tape. 

When dealing with mundane astrology it is a mistake to attempt to define or predict the manifestations of any individual transit without taking into account the coinciding aspects. When several demanding outer planet aspects complete within a short period of time it represents a moment of change in our society. We are in such a time. There are a substantial number of stressful planetary energies completing within a period of several years. Any one of these configurations by itself would warrant concern, as they have each historically shown the capacity to thwart the growth of our capitalistic structure. It is the combination of these events occurring in such a relatively short time span that has led me to my radical conclusions regarding our immediate financial future.

To fully understand where our society is at the moment you must take into account the two Great Alignments of the 20th century - February 1962 in Aquarius and May 2000 in Taurus.

The Aquarius great alignment of 1962 pulled our culture towards the more radical and freedom oriented part of our collective psyche. It led to the era we called the ‘60s, with all its violence and unruly fringes. Aquarius is interested in humanity as a whole and its greater concepts. It has little patience for the status quo and certainly led to a time in our history when things were turned violently upside down.

The May 2000 alignment pulled our society violently towards the Taurus view of things. Events such as the Bush presidency and 9/11 helped lead us in the direction that one would expect from this alignment. This is a conservative sign that is mostly concerned with money, possessions and personal status. That has proven to be the underlying theme of the last 10 years, and the reason we have reach a point of conversion. Let’s look at the aspects and what they might mean to the financial future of the world.

1. Jupiter, the planet of growth and expansion, has just entered Capricorn, the most restrictive of signs. We can expect a bear market for at least the next year, possibly much longer. Historically this is a bad transit for the financial markets.

Jupiter entered Capricorn on March 2nd 1960. In 1960 the stocks began a 10 month decline of 16%. Jupiter was in Capricorn in Feb. ’72 – Feb. ‘73, slowing the growth and expansion of our economy, and helping push us into the great recession of the 70’s. Although the greatest losses occurred shortly after Jupiter left Capricorn, this was one of the transits that heralded the terrible recession of the 70’s. From January 11th 1973 – December 6th 1974 DOW lost 45 % of its value. The British markets lost 73% of value during the same period. It took the British until 1987 to reach the same levels in their stock markets, only to be faced almost immediately with the crash of Black Monday in ’87. It took the U.S. markets until August 1993 to see real term values return to their pre-’73 levels, 20 years.

Jupiter entered Capricorn January 1984. October 1984 was that was the last time the Feds cut its federal funds target rate by three-quarters of a percentage point until this year. It was an attempt to ward off a coming recession.

Jupiter traveled through Capricorn January 1996 – January 1997. Here we see a bit of an anomaly. The circumstances were quite different. The tech stock explosion was in full swing and Jupiter’s subsequent entrance into Aquarius, ruler of all things technological, resulted in the explosion of the NASDAQ – followed by the greatest blood letting in modern times. The tech stock crash was the result of allowing Jupiter to overextend itself without a strong foundation.

Jupiter entered Capricorn December 2007 where it will remain until January 2009. This is only one indicator that we are heading into a dark economic period. By itself it would most likely represent a slow down in the economy. But it comes on the heels of the aspect below, and will have a much more powerful effect.


2.         Saturn has just completed its opposition to Neptune. This aspect occurs every 36 years. It is always followed by a recession, usually accompanied by inflation. It coincides with major political upheavals and has a long-term effect on the society. There is an extended discussion on the website.
Saturn was opposite Neptune in 1936. That year is referred to as Roosevelt’s recession. This occurred right in the middle of the great recovery Roosevelt had begun three years earlier and nearly cost him the election in ’36. But the ability of Neptune to create fear, doubt and confusion had a powerful effect and the economy slowed despite the best efforts of the collective.
The last time Saturn opposed Neptune was from June 1971 – April 1972. And just like today, it was followed by Jupiter’s entrance into Capricorn. It heralded one of the worst periods in American economics. Inflation was running so rampant and the economy was in such a state of disarray that Economists refer to this period as “The Great Inflation of the 1970’s.
August 1971 Nixon implemented a price-wage freeze (Saturn’s limitations), which didn’t work. Oil prices were exploding and public sentiment hit an all time low. Neptune’s ability to create confusion and misdirection to Saturn’s structure and stability was obvious. Inflation of this sort usually only occurs during wartime, when everything is artificially blown out of proportion. Yet this inflation continued long after the end of the Vietnam War, a result of Saturn opposite Neptune. This led to an inflationary recession, just like now.
In 2006 Saturn again opposed Neptune. I began predicting the present housing crisis years in advance in anticipation of this aspect. Saturn rules the housing markets. Neptune’s powers of illusion, confusion and misrepresentation certainly worked their magic. Obviously the opposition of these two energies led to an over-inflated housing market with an illusionary foundation.
Jupiter’s travel’s through Capricorn following the Saturn – Neptune opposition would be enough to assume we are heading into a protracted downturn in our financial markets. But when you have finished lining up your dominoes you need to tap one that will set it all tumbling down. Below is that one domino.

3.         Saturn will oppose Uranus on Election Day.
The last time this configuration completed was in February 1966 as the DOW approached 1,000 for the first time. It was immediately followed by a drop in the market of 25% by August 1966, and even though the markets then recovering nearly to their old highs by the end of 1968, they dropped even more sharply to a low of 631 in May 1970 as markets succumbed to rising inflation pressures and to the uncertainties attendant upon the Vietnam War, with its implied pressure on government spending.
The last time Saturn was conjunct Uranus (a similar energy) was shortly after Black Monday, 1987. The DOW lost 508 points in one day, the equivalent of losing 3,200 points in today’s market.

So we are at a time in history when these aspects are coinciding. With Jupiter is Capricorn, Saturn having just opposed Neptune, and about to oppose Uranus, we can see that the dominoes are all lined up and ready to fall. Inflation is out of hand, just like in the 70’s. The recession is just beginning to pick up speed. Unemployment will rise, housing prices will continue to fall, and the banks and credit card companies have a complete strangle hold on this society. At the usury rate of 32% interest these people have but one agenda – to keep the American public in debt their entire lives. We have naively handed the keys to the kingdom to the very people who would never consider sharing it. This is the direct result of Reaganomics!

4.         Pluto has entered Capricorn for the first time since 1778. It will oppose America’s Venus and Jupiter in the next few years. These will be very powerful and transformative times in our country’s history.

The dominoes are all set up – all we need to do is tap that first one and watch them all fall down. Saturn opposite Uranus represents that tap. It could manifest in any of a number of ways including most certainly a stock market crash, but also possibly an assassination or natural catastrophe of great magnitude. Earthquakes could be quite prevalent, as Saturn rules the very earth. Economically, we are on the edge of a deep and engulfing abyss as our personal and collective wealth is more and more controlled by a select few and integrated in this massive labyrinth of credit cards and a draconian redistribution of wealth.
What will happen has much to do with who we elect and how well they govern. But even that will be of secondary concern. Much of what will occur is already written in the sand. The housing crisis and the coming credit and banking debacles are seeds long planted in our society. There will be no quick fix this time. Ultimately it is Pluto, our de-planetized friend, ruler of the collective wealth that will be the reckoning. As it approaches the opposition to Venus and Jupiter over the next several years, we will be forced to deal with issues that will once again change our culture. As the Chinese say: “You should live in interesting times.”


Below are some excerpts from newsletters of the past four years. You will see that the major movements in our economy were easily predicted years in advance.
 


MAY – JUNE 2005

Oil will reach one hundred dollars a barrel. Its power over us is akin to a drug addict unhappy with his situation but virtually unable to muster the strength to face the problem. We don’t change our dependency on foreign oil because we don’t want to. Saturn is about to leave Cancer this July and enter Leo after 2 ½ years. Cancer rules the home, and Saturn is the planet of structure and stability. It rules real estate and the housing markets, and for about that length of time we have seen a housing boom the likes of which we have never touched upon in American history. Many of my clients and readers are concerned this bubble may pop. Your fears are well founded. …Nothing stays the same, and the circumstances that created this housing market are changing. I believe that once Saturn has left Cancer this summer, the foundation will become shaky. My fear is that Americans have overbought properties they will not be able to keep. If there is a collapse in housing it will affect all areas of our culture. My advice is to not rely too heavily upon the equity in your home for support. If you over borrow against your property you may wind up owing the bank more than your home is worth.


FEBRUARY 2006

Since Saturn left Cancer last July, the housing markets have continued to show weakness. Housing sales have continued to go down for months. According to the New York Daily News, analysts are predicting that sales of new and existing houses will decline another 10% this year. The natural ups and downs of this market are no longer in play.


SEPTEMBER 2005

JUPITER ENTERS SCORPIO:
For the next year we will see some rather intense occurrences including another huge spike in the price of oil (ruled by Scorpio). As I have predicted for years, oil is just going up and up and up. It has been resting in a trading range for a while but it will explode again real soon; maybe as soon as the beginning of this aspect. But it could take another nasty cold winter in the Northeast to push it up. Either way we are heading for a recession than will be badly handled by this administration. The end result will be a very bad economic time for the country.


JANUARY 2006

Pluto, ruler of oil, continues its journey in Sagittarius, the sign of expansion and growth, where it has been since 1995. However, in 2008 it begins its move into Capricorn. This is an event astrologers, especially those in the financial or political world, are anxiously waiting for. I will write more about this transition in months to come. It may represent a serious change in our history. My greatest fear is that since Pluto is also the ruler of Plutonium, we may be heading in a direction I would rather not think about right now.
Saturn, planet of stability and structure, left Cancer, ruler of the home, and entered Leo this past July. As I predicted in the months leading up to that change, the housing bubble, upon which Americans have placed much of their faith, has begun to show weakness with the removal of Saturn’s foundation. As 2006 progresses we will see a continued decay in that base.


FEBRUARY 2006

Since Saturn left Cancer last July, the housing markets have continued to show weakness. Housing sales have continued to go down for months. According to the New York Daily News, analysts are predicting that sales of new and existing houses will decline another 10% this year. The natural ups and downs of this market are no longer in play. The incredible upswing over the past decade was somewhat built upon speculative buying, the first to run for the hills at the sign of trouble.


MAY 2006

When Pluto entered Sagittarius in 1995 I began predicting a minimum $100 a barrel before things settled down. It was trading about $32 a barrel at the time. Since this planet moves very slowly it takes years to see the culmination of its travels. Here we are bracing for $100 a barrel and all the wonderful events that will follow. Pluto has been transiting this expansive sign for 11 years now, and it has about 2 years to go. Then Pluto will enter Capricorn, and the world will change forever.
I do believe that Pluto entering Capricorn in 2008 will lead to a difficult and tense time in our history. Remember, it was Saturn, ruler of Capricorn, in opposition to Pluto the day the World Trade Center was destroyed.


SEPTEMBER 2006

Saturn opposes Neptune for the first of three passes on August 31st. It will not complete until July 2007. Economically, we are heading into a time that has historically shown weakness. In 1971-2, the last time this aspect occurred, we had double digit inflation while a recession was going on. The price of oil exploded because an OPEC embargo, we were in an unpopular war, and the Nixon White House was caught spying on the Democratic Party.

If history is to repeat itself we are right on the brink of what could be an inflationary recession one more time. All the pieces are in place. We have a HUGE deficit, an expensive war, oil prices through the roof, a collapsing housing market, credit card debt that can no longer be included in a bankruptcy, terrible international relations with our fellow humans, and an unhappy population that is about to become much more so as the price of things goes up while their pay checks go down.


OCTOBER 2006

Now that the Saturn – Neptune opposition has completed for the first of three passes we are already seeing some of the results of this aspect politically, economically and socially. Tony Blair has announced he is leaving office voluntarily. Others will do so as well, although some will not go willingly. The prime minister of Thailand was just ousted in a coup. These are the kinds of political reversals one would expect under this aspect. The housing market, ruled by Saturn, is dissolving under the dissipation powers of Neptune.

Jupiter will enter Sagittarius, the sign it rules, in late November. Jupiter was in Sagittarius in 1971-2 while Saturn was opposite Neptune. This created an oil embargo and a hugely inflationary-recessionary period. The Saturn-Neptune opposition has produced a rather quiet hurricane season so far, as I expected, but it may bring droughts, as has already happened in the corn fields. If they worsen we will see the price of commodities rise to inflationary levels.


DECEMBER 2006

The election went as predicted; the Democrats more or less control both houses (though with Joe Lieberman sitting on the fence anything could happen.) There were fewer complications than expected, and although there were plenty of reports of difficulties with the voting machines, etc., the Republicans simply didn’t have the fight left in them to try and steal it. They were psychologically defeated before the first vote was cast. That is why Bush didn’t remove Rumsfield before the election.


MARCH – APRIL 2007

The Saturn Neptune opposition is being felt rather strongly. Inflation numbers are up, recession fears are mounting and the stock market is showing its cracks. As the markets take more hits the false sense of security most Americans live under will falter. The markets are moved by psychology more than fundamentals, and in an era of fear that will mean more than all the number crunching. I have been warning of a housing collapse for years. Once Saturn left Cancer and entered Leo the foundation in the housing market was removed.

We are facing a most intense power struggle in this country. The 2008 election will have an enormous effect on our collective psyche. Certainly the Iraq War will be in the forefront of discussion, but it pales compared to the real dangers facing America. With the middle class being raped and abused by a system gone madly out of control there simply has to be a breaking point. Millions of Americans own houses that are worth less than their mortgages. Credit card debt and the draconian methods used by the creditors to keep the middle class under their control threaten to drown our nation in uncollectible liability. Health insurance is out of the question for tens of millions. The underbelly is decaying and the very rich will not be able to stand firmly on our backs for much longer. Yurtle the Turtle is about to sneeze.

Because of the magnitude of our national wealth it is more difficult to see trouble coming. Yet there are areas of this country that are already deeply in recession. I have a number of clients and friends who live in Michigan, and the decay of the automobile industry has taken its toll on the entire economy of that state. People are moving out in alarming numbers. Where will they go to find jobs on par with the ones they have lost? What community in this country is stable enough to take in a huge number of displaced people? The victims of Katrina are still looking for homes.
…there are millions of Americans who will simply never be out of debt. The interest they owe will continue to increase and they will never be able to pay off the principle. What do you think will happen if there is a real recession?


JUNE – JULY 2007

Saturn opposes Neptune this month for the last time. The further deterioration of the housing markets is the most obvious result. We have had Jupiter in trine to Saturn in the fire signs, which has been holding up our financial markets and preventing any sort of collapse in the stocks. That trine completed in May, although we will see these two trine each other once more in January 2008 in the earth signs. As this trine moves further apart the support it provides will lesson. We have also had Jupiter in square to Uranus all year, and that aspect will complete once again in October 2007, but without the support of the Jupiter – Saturn trine.


JULY – AUGUST 2007

In the second week of October Jupiter will square Uranus, planet of sudden and unexpected changes. It will do so without the benefit of that trine to Saturn, and we could see a major reversal in the stocks. Once Jupiter enters restrictive Capricorn in December we will see the recent growth limited. There will be one more trine between Jupiter and Saturn in January, and then that support is removed.

The wonderful Saturn opposite Neptune has completed, which may allow a more realistic attitude about our economy as Neptune’s ability to create illusions wanes. The true effects of the collapsing housing market will become clearer as the months go by. It is only now that economists are realizing the extent of this mess – how deeply it affects the entire financial system.
At the end of January Pluto enters Capricorn as well, creating a trine to Saturn in April 2008. This will stabilize the political situation for a moment, but the transit of Pluto through this sign will take many years and, I’m afraid, may herald some sort of nuclear situation somewhere in the world. In March 2009 Pluto will oppose America’s Venus, ruler of our 6th, 10th and 11th houses. This will begin a period of transformation in our national conscience. A year later it will oppose our Jupiter, ruler of the chart. This could be a very difficult time for our nation as we attempt to change our direction without disrupting our foundation. We may or may not be able to do so. A lot has to do with who we elect in 2008 and how well they are able to govern.


AUGUST – SEPTEMBER 2007

Saturn changes signs this month, entering Virgo after 2 ½ years in Leo. This will have a powerful impact on the financial markets, forcing us to view them in a more realistic and detailed manner. It will be more difficult to get away with things while this planet is in the mutable earth sign. With health care costs through the roof, housing prices plunging and many Americans facing financial disaster a serious dip in the stock market could remove trillions of dollars from the cash flow driving up into a recession that will affect most of our lives. Many have their retirement invested in the markets, and as the baby boomers reach that magic age what will be waiting for them?
Since Virgo also rules the 6th house of health, we may be facing a deeper crisis in our health care industry. Just using those words together – calling it a health care industry shows the problem. Good health should be something we can expect from a civilized society. Instead we have given power over our very bodies and life force to people who only understand profits. Woe unto us if there is any major health crisis in this country. The uninsured would be lining up outside hospitals begging for help.


SEPTEMBER – OCTOBER 2007

As the volatility continues in the stock markets, and the Feds scratch their heads trying to figure out how to blow up a busted balloon, the recession sneaks into more and more American households. Jobs are beginning to decline, consumer confidence is the lowest it’s been in years, and the politicians (in both parties) run around with their heads up their primaries.

Saturn in Virgo will also demand a reckoning in our financial markets. The world economy is about to have an audit. Unfortunately the end result will be as it always is. The poor will be poor, the middle class will get screwed and the rich will go on a buying spree.

The residue of that Saturn – Neptune opposition is just starting to become a reality as the full brunt of the overvalued housing market, the overextended credit crisis and the unchecked chicanery implemented by the banking industry becomes common knowledge. Neptune tends to hide things from view. Saturn has fallen victim to its powers and for the past year or more we have not seen things clearly. Now that Saturn has left Leo and entered Virgo, reality will be seen without the Neptunian fog.

The one harbinger that puts the icing on the cake, however, is the all-out attempt to finally complete the troubled 2nd Avenue subway. They have been trying to build this thing since 1925. Every time they have tried has been quickly followed by financial or national disasters. Why would this time be different? And who honestly believes that if this war on terror continues for any length of time, that the subways will still be in use in ten years. With forty dollars worth of explosives any group of people could put the entire system out of commission. Look what happened last month when there was a heavy rain storm. The subways were shut down – all of them. New York was virtually crippled.


JANUARY 2008

Oil has finally hit $100 a barrel. For those of you familiar with my newsletter you know that I made this call several years ago, long before this commodity began its unprecedented rise, as Pluto, ruler of oil, began to travel through Sagittarius, sign of growth and expansion.

The dissolving housing market was also predicted accurately. Saturn, planet of structure, traveled through Cancer, ruler of the home, for 2 ½ years laying down a foundation for growth and a sense of stability. The month it exited Cancer and entered Leo, July 2005, was the very top of the market. Its rapid decay was due to Saturn (ruler of real estate) opposite Neptune (the great dissolver). Every time that opposition occurs we have a recession.

Jupiter, the largest and most expansive of the planets has entered Capricorn, the most restrictive of signs. The results should be obvious. There will be a slowdown in the growth and expansion of most things, especially the financial markets. Now the recession will really show itself. It should last at least through the year that Jupiter takes to transit this sign.

On January 21st Jupiter will trine Saturn for the last time. We have seen this aspect three times over the past year, and it is somewhat responsible for much of the underlying support our economy and stock market have relied on. Now with this last pass completing I believe we will begin to see the cracks we have all been aware exist. Even a subtle bear market could do serious damage to our economy now. As the baby boomers begin to take their retirement funds to live on, much of which is heavily vested in the stocks, a dip in their equity would have tragic results. But a serious crash or precipitous drop in the markets would be catastrophic.


FEBRUARY 2008

There are two extremely important aspects we are facing at the moment. The first is Pluto’s entrance into Capricorn, which began in late January, and will continue until 2024. The second is Saturn’s opposition to Uranus, which will get stronger as we approach its first completion on (of all dates) Election Day. It will complete again in February 2009, and again in September 2009. We will continue to discuss Pluto’s travels, but for now let’s look at the Saturn – Uranus opposition.

Saturn rules stability and structure. All things that need a foundation upon which to grow rely on Saturn for its foundation. Uranus is the energy associated with rebellion, sudden upsetting situations and radical change. When these two are in conflict there is a battle between the need for revolutionary change and the need for structure. Clearly the battle between John McCain, representing the status quo, and either Democratic contender representing change, is the most obvious manifestation of this intense aspect. I have found that when these two energies are in conflict, it is Uranus’ need for change that usually wins the day. This is one of the events that lead me to believe that whoever is nominated from the Democratic Party will be president.

But because Saturn also rules the financial structure and stability of the society, and as such rules banks and the foundation of our monetary markets, we can expect more disruptions and a shaking of that foundation.

The real concern is even deeper. The baby boomers, the largest portion of our population, are about to begin spending their retirement funds. Most of them are heavily vested in the stock market. If there is any serious collapse in those markets these people will not be able to take the amount they have been relying on. If the estimated 78 million Americans that comprise this group are forced to live on less than they had planned for and are unable to retire in comfort and security, what do you think that will do to our economy?

As we head towards the Saturn – Uranus opposition, the potential for a stock market crash increases. The fact that this aspect completes for the first time on Election Day is interesting. Wouldn’t a crash the day after the elections be something?

Mitchell Scott Lewis
February 2008
New York City
(212) 726-3814
Copyright 2008
All Rights Reserved