Friday, November 27, 2009

Federal Reserve and the Dollar


Will the dollar continue to fall in value as measured against other currencies?

Currently the metals are moving up in price faster than the dollar is declining in value.  

Will the metals move up or have they reached the point of a bursting bubble? It depends on who is buying with which currency.


The Sun of the Fed is conjunct the Dollar's Mars.  Pluto's current transit has both in trouble simultaneously.  Whenever the Fed tries to give the dollar some energy by running the printing presses then the public loses its temper with the Fed.  

Current transits of Jupiter and Neptune are forcing the Fed to examine its motives and research its own receipts.  Maybe the call for transparency is needed. 

Throughout 2009 we have had repeating aspect formed by Pluto entering the sign of Capricorn moving from zero degrees to 3 degrees Capricorn. While transiting these degrees, Pluto made a conjunction with the Dollar's Mars, the USA Federal Reserve Sun and the Jupiter Mars conjunction for the Central Bank of China.

The Chinese Central Bank was established Dec 1, 1948.  It has Mars and Jupiter conjunct at 3 degrees Capricorn.  Pluto stationed and moved retrograde transiting 3 degrees Capricorn during March, April and May of 2009.  Does it seem like we are moving into a similar conundrum?  The aspects are repeating themselves.  During this period of time the dollar moved up slightly against the Yuan, Yen and Euro then resumed is precipitous fall once Pluto fell back to two degrees Capricorn.


Will the debt pressures from Dubai snowball over the final weekend in November?

Headlines seem to predict that the pressure is really on this week-end for the Federal Reserve to defend the dollar since oil must be purchased in dollars.  However, Pluto is trine the dollar's Uranus suggesting that some very strange undercurrents are threatening its status as a world currency and the aspect that follows is Jupiter trine the Sun which is the aspect that was exact April 20, 2009. Toward the end of April it appeared that the dollar might recover. It appears that the Federal Reserve has one more arrow in its quiver and could accomplish the task. The arrows name."Contract Law" the reason the US maybe able to retain its leadership role in the world economy.


However, is this a temporary hiatus for the dollar?

Yes! Values continue their trend down against all currencies, however the dollar seems to be under the most pressure. Jupiter and Neptune made conjunctions to the US dollar's Pluto. This aspect repeats May and July conjunctions to its final exact conjunction Dec 20, 2009. (Charts for Gold, the Federal Reserve, the Euro and the dollar are in The Textbook for Financial Astrology books 2 and 4). From the point of view of the dollar, it is losing value and unable to buy as many Big Macs abroad as it could just two years ago.  


What's the problem?

Jupiter expands and those areas represented by Neptune( oil, debt and deception).  Both are in Aquarius.  Technology is exposing the deceptions as well as the over expansion of debt. The dollar's Pluto will be hit by this conjunction causing increased awareness of the international debt crisis and the dollar denominated price of oil. 


Back to China

China has lots of US dollars and spends the dollars buying oil and metals. The lower the price of oil etc. the more China can buy. At some point they will run out of room to store their raw materials. China will stop spending money on raw materials and start buying debt securities.  Could they bailout Dubai? They might. 


Saturn square Mars in April will be the catalyst to re energize the dollar and let it climb out of the Doldrums.  (Follow the link to the blog concerning the dollar.)


My suggestion:  If you like the product, buy the stock.  If you are trying to play the currency markets, I have a horse I'll be happy to sell you.

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