Summer Solstice Part II: Economic and Financial Effects

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In Part I of my post on the Summer Solstice I described how the Sun in Cancer’s alignments to Jupiter, Saturn, Uranus, and Pluto shed light in understanding how these planetary alignments affect individuals.

When the Sun enters Cancer each year at the Summer Solstice, the Moon becomes the focal point since the Moon rules the zodiacal sign Cancer. The Sun entered Cancer at 7:30 AM EDT June 21, 2010 as the Moon nearly completed its transit in Libra.

Like Cancer, Libra is a cardinal (initiating) sign, indicating that events will unfold rapidly this summer. Although Libra energy tends to be indecisive, there is little time for fence-sitting with half of the planets in the Solstice chart in cardinal signs. Balance is key as Libra energies strive to make us aware that nothing in life is one-sided. Relationships of all kinds, including financial arrangements are in focus this summer since Libra is ruled by Venus the planetary energy of money and attraction.

Since the Moon was not forming any major aspects to the other planets at the time of the Solstice,* the Libra Moon operates like a loose wire. Many unexpected developments are likely to occur that necessitate changes and alterations, especially concerning issues requiring collaboration and cooperation with others. Legal rulings are more subject to being overturned as well as being reinstated.

The Void Moon at the end of a cardinal sign when Jupiter (expansion), Saturn (contraction), Uranus (reform) and Pluto (transformation) are at the beginning of cardinal signs indicates that decisions must be made that apply new solutions to longstanding issues. The unpredictable nature of the Void Moon in Libra is likely to be more evident during the days when Libra energies are more pronounced (July 18, 26, 29-31; August 4, 6-10, 13-14, 16, 20-21; September 4, 9, 11-13), especially after Saturn re-enters Libra July 21.

The Solstice Chart in the USA
Born with the Sun, Mercury, Venus and Jupiter in Cancer, the USA is particularly attuned to the Moon’s energies. The Moon is the ruler of the Summer Solstice chart set for Washington DC, equating to the fluctuating mood of the nation.

The Moon in its “home” sector of the chart and rules all those Moon/Cancer issues such as food, family, real estate, agriculture, the environment, and national security issues, and consumer protection. Women will be more prominently featured in these areas.

Declining home prices and rising inventory levels encompass part of the next phase of the crisis as the US makes the transition away from being a consumer-based economy. Saturn in Virgo conjoining this sector, opposing Jupiter and Uranus in Aries and squaring the Sun in Cancer and Pluto in Capricorn reflects that homes will be purchased for their utility value. This will force banks to reduce the prices of their growing inventories of foreclosed properties. Borrowers will begin to learn the lesson that a mortgage is not risk-free.

The Solstice Sun located in the sector representing action taking place behind the scenes continues the pattern begun at the June 12 Gemini New Moon cycle. I wrote then how the Gemini New Moon conjoining the USA’s natal Mars could bring a lot of dirty laundry out of the closet regarding the military. Mercury in Gemini is also in this sector at the Solstice and conjoins the USA’s natal Mars. With the Solstice Mars in Mercury-ruled Virgo in the sector of the media, this indicates that what leaders (especially military leaders) say to the media can be their own self-undoing as Lt. Gen. Stanley McChrystal has found out.

And then there is the findings of a House Congressional probe revealing that well over $2 billion in military contracts for fuel (this is the sector of the chart naturally ruled by Neptune), food, supplies and weapons in Afghanistan are going straight into the pockets of the enemy and relatives of Afghan President Hamid Karzai. Neptune in Aquarius in the sector representing domestic security in the Solstice chart set for Afghanistan reflects widespread fraud and bribery amongst “private” security contractors. Neptune ruling the sector of foreign affairs in the Solstice chart further confirms that covert activities are taking place that deceive the U.S. at every turn in this unwinnable war.

The financial system remains the central focus this summer as the Sun rules this sector of the Solstice chart. Venus in Leo conjoining this sector and ruling the sector representing Congress reflects the passage of financial regulatory reform. President Obama’s Leo Sun exactly conjoins this sector indicating that the Administration will take the lead in defining the more ambiguous parts of the legislation.

Pluto’s influence is particularly potent this summer as the Solstice Sun, the June 26 Capricorn Lunar Eclipse, and the outer planets all form alignments to Pluto. Pluto ruling the sector of the Solstice chart representing the stock market points to the major indices trading at much lower levels going at the September 22 Autumnal Equinox from where they are now.

Beyond the primary concern about sovereign debt (including state and local governments), and slow growth in employment as the nation embarks on a slow and difficult transition away from being a consumer-based economy, the market will discover it underestimated the impact of financial regulatory reform. At least one hedge fund could implode - a casualty of the Fed’s zero interest rates and excess liquidity. Wall St. could also be spooked by more charges of fraud and corruption that regulators take to court instead of allowing those charged to settle without admitting guilt.

Interest rates will rise regardless of the Fed’s stance as an abrupt reversal of Treasury and agency yields will likely occur as the risk premium demanded by investors for US debt rapidly rises. In short, Pluto ruling the sector of the stock market indicates that the financial crisis is not over as more lethal financial toxins rise to the surface.

Speaking of toxic conditions, Pluto, the Sun, Saturn, Uranus, and Jupiter prominent in the Gulf of Mexico and the Gulf states from eastern Texas through Florida at the Summer Solstice indicate the BP oil disaster is a far bigger problem than the company and the US government is admitting to the public. It appears that over the next three months, most of the spill will migrate from the Florida panhandle to Tampa/St. Petersburg and further to the south and east.

The June 26 Lunar Eclipse reinforces these energies as it squares Florida’s natal Uranus in Aries. This indicates the Sunshine State could be facing several “freaky” events this summer – from severe thunderstorms, hurricane potential, deadly accidents, fires and explosions, political upheavals, to possible civil unrest by a radical group that could require military intervention. A major incident could surface involving USCENTCOM which is headquartered in Tampa. Other hot spots in Florida beyond the west coast of the state include the areas around Orlando, St. Augustine, Cape Canaveral, Miami, and the Keys.

Additional potential U.S. hot spots this summer include eastern Michigan, Ohio, West Virginia, the western parts of Virginia and North Carolina, South Carolina, and Georgia. Mars brings heat and mostly dry weather from the western part of the Dakotas and Nebraska, eastern Colorado, and western Oklahoma through Texas. Mars can also bring increased violence at the Texas/Mexican border. Neptune can bring sudden storms that cause flash floods to Montana, eastern Idaho, Utah, and Arizona.

World Summer Hot Spots: Canada (Ontario, Calgary), Strong hurricane and earthquake potential for Cuba, Guatemala, Belize, Honduras, Nicaragua, Costa Rica, Panama, Ecuador, and Peru, Argentina. The Sun overhead through Germany indicates that German Chancellor Angela Merkel takes the lead in Europe in making major structural reforms to tackle the sovereign debt crisis, as Pluto and the June 26 Lunar Eclipse conjoin Germany’s natal Uranus, and the Solstice Sun squares and Jupiter and Uranus in Aries opposes natal Venus in Libra. Saturn rising over the UK and the EU’s HQ in Brussels indicates fiscal austerity measures are being set into motion.

Other hot spots include Norway, Switzerland, and Italy. (Pluto underground through Rome can bring more secrets to the surface in the Catholic Church sex abuse scandal, as well as government corruption.) There is also the potential for earthquakes in Italy, Sardinia, Corsica, and southeastern France.

Africa (Algeria, Tunisia, Niger, Nigeria), Kazakhstan, Kyrgyzstan (where both the US & Russia have military bases), India (Bangalore). Political unrest is likely in Burma and western Thailand. Earthquakes, tsunami and severe storm potential for central China, Malaysia and Sumatra. The Chinese government could enact further restrictions on internet access and start to crackdown on labor unrest.

Eclipses
The energies of the Solstice quickly reach a culmination point at the June 26 Partial Lunar Eclipse which is a supercharged Full Moon. The intense energies streaming into the Earth’s atmosphere during the eclipse period bring rapidly changing events, especially as the eclipses are in the cardinal signs Capricorn and Cancer.

Eclipses block the light, meaning we will see the themes emphasized by the eclipses in a whole new light during the coming weeks. This is why it is preferable to postpone making major decisions and taking action during the period preceding and following the eclipse period (June 19 to July 18).

Financial markets can behave erratically during this time. A study concluded there is a downside tendency preceding the eclipses. My own observations correlate to the light symbolism mentioned above; reality doesn’t usually set in on Wall St. until a week or so following the eclipses.

The Moon in Saturn-ruled Capricorn emphasizes economic, structural, and reputational issues. Capricorn rules governments and Saturn represents contraction. Every industrialized nation recognizes that governments must rein in spending and exert fiscal discipline but the Jupiter-ruled USA who continues to spend money foolishly. Capricorn rules the past, but Pluto’s message is the past cannot be resurrected. The more the government and the Federal Reserve desperately try to bring it back, the harder and longer it will be to transform from recession to sustainable economic prosperity.

The Moon and Pluto opposite the Sun and Mercury in Cancer reflects new home loan rules requiring borrowers to make a larger down payment to qualify for a mortgage and lenders to verify the borrower’s ability to repay the loan (what a concept!). Jupiter, Uranus, and Saturn squaring the eclipse reverses the decades old attitude of buying as much home as you can borrow once borrowers begin to understand they could still be financially responsible for making mortgage payments on a home they strategically defaulted on. With Capricorn/Saturn energies prominent, actions have long-term consequences as nothing is exempted from karmic justice. Seven years is a sub-Saturn cycle; borrowers who strategically default on their mortgage will now have to wait seven years before they can obtain a loan guaranteed by Fannie Mae (FNM). And some states allow lenders to collect from borrowers up to 20 years later.

The USA is a Jupiter-ruled nation with Venus (money/banking) and Jupiter (growth) in Cancer (real estate), reflecting that much of the nation’s wealth is based on the expectation of increasing wealth through homeownership. Mercury in Cancer in the sector representing mortgages opposite Pluto in Capricorn in the sector of the USA chart representing the financial industry perpetuates this mindset of taking on as much as debt to acquire as much home as possible. Neptune the planet of dreams in Virgo elevated in the USA’s birth chart and squared by Mars in Gemini (both signs are ruled by Mercury), explains why home ownership is aggressively promoted as the “American Dream.”

Pluto has been opposing the USA’s Venus/Jupiter conjunction since 2009. Now as the Lunar Eclipse brings our full awareness to the fact that housing values are unsustainable at current levels, the USA’s progressed** Moon in Virgo conjoining the USA Neptune starts to remove the veil of illusion of the American Dream that for millions has already or will become an American nightmare. From the illusion of the mortgage interest tax deduction that in reality only benefits upper income homeowners, to the false belief that home values can only go up, to free marketers who decry financial reform taking away a borrower’s “freedom” and “choices” to obtain an adjustable-rate mortgage they can no longer afford when the rate resets, the public is waking up to the deception by the government and the financial and real estate industrial complexes.

The Moon conjoining Pluto in the sector representing the work force and the physical health of the nation in both the Solstice and Lunar Eclipse charts set for the USA indicates that a massive transformation is underway in these areas. With Pluto, conditions must deteriorate, decay and become more outrageous before they begin to get better as corporate and government corruption spills out of the closet. Experiencing Pluto’s extremes allows a catharsis to take place.

Moon/Cancer rule food and liquids, Pluto rules toxins and the interests of the plutocrats, and Capricorn rules government. While the government obsesses over illegal drugs, the larger concern should be how drugged up we are as a nation not just from over medicating on “legal” drugs. More critically is the chemicals and drugs the government allows corporations to pump into our food and water supplies resulting from pumping up cattle and farm raised seafood with antibiotics and growth hormones. Virgo rules diet, health, and hygiene. The USA’s progressed Moon in Virgo conjoining natal Neptune is waking the public up to the health and national security risks of contaminating our food and water supplies for the benefit of big business who use their profits to buy the politicians and the “safety” regulators (Pluto opposite USA Venus/Jupiter).

Capricorn/Saturn rule the elderly, and the Moon conjoining Pluto and squares to Jupiter, Saturn, and Uranus bring a wakeup call for retirement reform when at least one prominent city or municipality faces the prospect of bankruptcy unless they default on their pension funds. People will have to work longer and provide their own retirement nest egg that is not dependent on the value of one’s home, a pension, or 401k as IRAs will become the sole retirement fund for all individuals. Regardless of what the Fed or members of either political party say, the cost of living will rise and so will taxes on the middle class unless both parties can agree to severely cut the budgets benefiting their biggest corporate donors.

Expect the unexpected is the only thing that can be said with certainty about Uranus. The July 4 Last Quarter Moon anchors the energies of the Lunar Eclipse and the July 11 Solar Eclipse in Cancer. With Uranus’ energies pronounced as it turns retrograde*** July 5, and the Moon in aggressive Aries, there could be more than fireworks exploding now. These energies bring greater potential for earthquakes, volcanic eruptions, violent thunderstorms, fires, explosions, power outages, disruptions/cancellations in air travel, as well as civil unrest and surprise attacks.

The Last Quarter Moon squares the USA’s Cancer Sun and opposes natal Saturn in Libra, indicating the USA has major structural issues to tackle. And so does China since the Quarter Moon opposes China’s natal Mercury and Neptune in Libra. Saturn in Libra will oppose the Quarter Moon in November at the time the USA experiences a Saturn return. At that time the pressure will be on for the government to get its fiscal priorities in order.

North Korea could once again use the Independence Day holiday to launch a missile. Other areas of the world not already mentioned that are prominent now and again at the July 11 Solar Eclipse are Japan, Russia and former Soviet republics, Turkey, Middle East (especially Syria, Saudi Arabia, Iraq). Pluto rising over Iran could indicate aggression over nuclear issues and Uranus-ruled uranium enrichment. There is potential for violent storms, accidents, and/or security issues for New York City/NY and New England states.

Security concerns are front center at the July 11 Solar Eclipse in Cancer occurring at 3:40 PM EDT, as the geopolitical issues from July 4 could escalate involving North and South Korea, Iran, Iraq, and the Middle East. There is also translates into strong earthquake/storm potential for Japan, Iran, Brazil. The East Coast could experience wet weather and flooding, especially, New York/NYC, and New Jersey.

Pluto rules the Eclipse chart set for the USA and is located in the sector representing the financial system while the Solar Eclipse occurs in Pluto’s natural sector ruling debt, death, and financial secrets. Pluto squares Jupiter and Uranus in Aries in the sector ruling the stock market and opposes Saturn in the sector representing Congress and government regulators.

This “ocean eclipse” could shift sentiment from buying to boycotting US Treasuries and agency debt as the interest rate risk is too low. Despite the US being the world’s reserve currency, it does not mean that a large and unexpected reversal of risk could render the Fed’s low interest rates for an “extended period” irrelevant.

Economic/Financial
Large and wild market moves accelerate volatility as the end of July approaches. Saturn re-enters Libra July 21 until October 2012, increasing fears that US finances are way out of balance. Jupiter turns retrograde July 23 and squares Pluto the following day as both planets square the USA’s natal Venus. This can represent a shift in sentiment which could start with foreign buyers believing that government debt is overbought.

The July 25 Full Moon in Uranus-ruled Aquarius ushers in a wild and crazy few weeks as we’re in the heat of the action involving the biggest concentration of planets forming challenging alignments in action-oriented cardinal signs since the early 1930s. What happened over several years during the Great Depression is largely unfolding now. If Uranus hasn’t broken in all those circuit breakers yet, this could be when the action starts. The more pundits proclaim we can’t break the March 2009 lows or can’t have a short and sharp rally amongst the bearish sentiment, the more Uranus in Aries will want to prove them wrong.

July 26 marks the final opposition of Saturn and Uranus that began on Election Day 2008 and concluded in Virgo/Pisces on April 26, the day the indices hit new 2010 highs. The market tends to have an upward bias as Saturn opposes Uranus, and then begins to fall within one to four weeks after that. This time Saturn in Libra will oppose Uranus in Aries which could bring an unexpected legal ruling.

Mars acts as a trigger, reigniting the Solstice and eclipse energies. Mars will enter Libra July 29, square the Summer Solstice, oppose Uranus July 30, conjoin Saturn July 31, oppose Jupiter and square Pluto August 4, as Jupiter and Pluto square again.

Since Mars is the natural ruler of Aries, it does not function well in Aries’ opposite sign, Libra. Mars in Libra until September 14 creates tensions in relationships and risk involving financial counterparties. Mars was last in Libra August 19 to October 4, 2008 when the financial crisis erupted. This will be accentuated August 6 when Venus enters its home sign Libra until September 8.

Uranus shifting back into Pisces (oil and the sea) August 13 coincides with when BP’s two relief wells are scheduled to be completed although it looks like there could be other problems and/or storms in the Gulf around this time that create further delays.

Jupiter opposes Saturn August 16, the day of the First Quarter Moon in Pluto-ruled Scorpio. This creates an economic tug-of-war between expansion (Jupiter) and contraction (Saturn). It could also bring geopolitical tensions in the Middle East particularly involving Israel, Syria, Lebanon and Turkey. Saturn squares Pluto for the third and final time on August 21. This configuration first occurred on November 15, 2009 just before Dubai World shifted fears from private debt defaults to sovereign debt defaults. By the time of their second alignment on January 31, the euro’s rise had gone into reverse over fears concerning Greece’s debt.

In between these two major planetary alignments is the August 20 options expiration with the Moon in Saturn-ruled Capricorn, and Mercury turning retrograde in critical Virgo at 3:59 PM EDT until September 12.

Jupiter shifts back into Pisces September 9, conjoining Uranus on September 18. The September 15 First Quarter Moon in Sagittarius squares the USA’s natal Mars/Neptune – two years to the day that Lehman Brothers filed for bankruptcy during the Harvest Full Moon. Pluto shifting to direct motion the day before and Mars moving into Pluto-ruled Scorpio generates action related to debt, bankruptcy, nuclear issues, insurance, opaque financial instruments, corruption, and toxic conditions, as explosive secrets arebrought to the surface.

The Federal Reserve issues their statement on monetary policy on the last day of summer as the Sun in Virgo opposes Jupiter and Uranus in Pisces. This indicates the potential for a policy reversal (such as dropping the “extended period of time”). Another member of the committee could join Hoenig in dissenting Fed policy.

Financial markets have a greater potential for more pronounced moves, increased volatility or a shift in market direction on or around the following dates:

June: 21-25, 28
July: 6, 8, 12-13, 21-30
August: 3-4, 6, 9-11, 13, 16, 20, 23-24, 26, 30
September: 1, 3, 7-9, 13-15, 17, 21

The planetary alignments occurring during the summer pave the way for revolutionary transformation of economic and societal structures when Uranus squares the USA’s Venus/Jupiter conjunction next summer, followed by Uranus squaring Pluto during 2012-2015. This is when the nation will break free from the faux financial “innovations” of the last 30 years.

The Weekly Forecast features a detailed view of planetary influences and how they might affect the economy and financial markets.

*This is called Void-of-Course (VOC) which occurs about every 2.5 days before the Moon enters a new sign. VOC Moon periods can last from one second to over one day.

**A mathematical calculation that moves the planets forward in time as a method of prediction.

***Planets do not really move backwards but appear to from Earth’s vantage point. Uranus will be retrograde until December 5. Uranus retrograde subdues the call for making fresh changes, preferring to shock us into changing what is long overdue.

USA: July 4, 1776 5:10 PM Philadelphia, PA

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