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On why the Federal Reserve is in a tight spot




For Federal Reserve officials, deciding to raise short-term interest rates will be the easy part of their meeting next week. The harder part may be agreeing on how to signal the likely path of rate increases in 2016 and beyond.
Traders in futures markets are putting an 85% probability of the Fed raising its benchmark federal-funds rate by a quarter-percentage point from near zero when the two-day meeting concludes Dec. 16. Officials, including Fed Chairwoman Janet Yellen, have encouraged this expectation, in light of the jobless rate falling to 5%.

The chart below crystallizes why the Fed is stranded in a monetary no man’s land. By the time of next week’s meeting the federal funds rate will have been pinned at about 10 bps, or effectively zero, for 84 straight months.
Yet during that same period, the consumer price level has risen by 1.75% per year. And that’s if you give credit to all of the BLS gimmicks, such as hedonic adjustments for quality change, homeowners “imputed” rents and product basket substitution, which cause inflation to be systematically understated. On a basis that is close enough for government work, therefore, the real money market interest rate has been negative 2% for seven years. But that’s so crazy, unjustified, and unprecedented that even the Keynesian money printers who run the Fed have run out of excuses.So after one pretension, delusion, head fake and forecasting error after another, the denizens of the Eccles Building have painted themselves into the most dangerous monetary corner in history. They have left themselves no alternative except to provoke a riot in the casino - the very outcome that has filled them with fear and dread all these years. http://www.zerohedge.com/news/2015-12-10/feds-painted-itself-most-dangerous-corner-history-why-there-will-soon-be-riot-casino






Astrologically speaking, is there anything that can explain the two news items above?  Let us begin with the horoscope of the Federal Reserve  cast for  December 23, 1913 at 6:02 P.M. when President Woodrow Wilson signed the Federal Reserve Act into law The following extract from Bill Meridian’s essay [1]  The Horoscope of the Federal Reserve highlights the chart's major configurations.

The Fed's horoscope is dominated by three major axes or groupings:

1)            Mars and Neptune rising opposite Jupiter.

2)            The Sun opposite Pluto, both squaring the zero Aries Midheaven.

3)            The Moon in mutual reception with Pluto, the former ruling the Ascendant and the latter the fifth house.

The first grouping is descriptive of the Fed's tendency to inflate the currency. How could any entity with a hard Mars-Jupiter-Neptune aspect be expected to exercise restraint and maintain a stable currency? An insider tells me that these planets do describe the idealistic zeal or misguided ideas with which most Fed employees go about their jobs (note Neptune ruling the ninth house and Mars the tenth).

The Sun-Pluto-Midheaven T-square describes the Fed's propensity to accumulate power in a subtle fashion without the knowledge of most citizens (Pluto in the twelfth). As we shall see in the next section, the Sun's rulership of the second house is the Fed's ability to control the dollar value of all the country's assets, which, in fact, is accomplished by a fifth house method (Pluto's rulership).

The Moon-Pluto-fifth house relationship describes the Fed's open market operations, the principal process by which the currency's value is controlled. Of course, the Moon in a mundane chart such as this rules the people, and the Fed has an enormous impact upon all of us. Pluto's presence is especially noteworthy here because this is the Fed's most powerful, yet covert and least understood tool. Mythologically, did not Pluto wear a helmet that rendered him invisible when he went above ground?




So briefly, the Fed has lived up to what can be expected from its chart. Here we look at three  relevant  current charts.  The first is the lunar return chart for the Federal Reserve. 





The second is the chart for the current New Moon of December 11 and finally the third is the chart for the biggie Saturn-Neptune square that took place on November 26. What we need to remember here is that things start to happen when the smaller charts (the “minute” hand) resonate with the biggies (the “hour hand). Notice all of them carry the Saturn-Neptune square on the angles. This is an aspect where Saturn, the planet we associate with a “reality check”, forcefully removes the veils of lies, deception, dishonesty and evasiveness that Neptune is so famous for. Is it at all surprising that the Fed has now run out of excuses?





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