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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