Wednesday, November 10, 2010

Chinese Currency

Yuan as Reserve Currency?

With the G20 meeting the IMF has announced a plan that would make China the third-strongest member. The position will allow China to take more responsibility as well as greater power
The North Node and Pluto are conjunct the Jupiter Mars conjunction of the chart for the Chinese Currency. Pluto has been near 3 Capricorn since 2009 and finally achieved its goal of bringing the Yuan/Renminbi as one of the reserve currencies for the world market.

The Yuan has risen 3% since July and over the past 5 years it is up nearly 25%. notice that in 2006 Jupiter moved across the Venus South Node conjunction of the Yuan and as it passed each planet through Sagittarius and Capricorn the Yuan gained value against the Dollar, Euro and Yen.

The transit of Saturn to the natal Pluto gave the currency power to its structure. It's Saturn return kept the Yuan on its path. Saturn moving to a conjunction with Neptune may provide the opportunity to allow the Yuan some flexibility with interest rates in China allowed to rise to prevent a bubble in real estate or stocks. As Saturn reaches the MC the Yuan should become fairly valued however that will be 2012. The Saturn transit will allow the Yuan to remain a reserve currency for about 10 years.

The IMF has made a valid decision as to the future of the Chinese currency and its ability to take responsibility for the value of the Yuan. But what about the IMF?

Currency Bubble?
Are we headed for a world wide currency bubble? Jeremy Grantham suggests it is a possibility in his interview on CNBC, Nov.11, 2010. Bubbles usually occur when Jupiter and Uranus are in Aries and that will occur March-June 2011. This blog will discuss sectors where bubbles might occur during the next few months. Charts for the dollar, and euro appear in The Textbook for Financial Astrology. Stay tuned to this blog.


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