Satellite Searching for Saudi Oil

With crude oil up 95% year over year and touching over $120 a barrel yesterday, analysts are turning to satellite images to gauge oil supply.

Today’s Wall Street Journal cites a study by Sanford Bernstein that compared high res sat images from 2001 to 2007 of Saudi Arabia’s Ghawar field. Ghawar is 20 miles wide and 175 miles long, and began production in 1951. It comprises 60% of total Saudi production and around 7% of global supply; the equivalent to all US combined daily production.

In a report issued to clients last month, Bernstein concluded that only part of Ghawar “is suffering signs of old age” and faces “mild production declines at worst.” The northernmost part of the field called Shedgun, showed signs of being “uplifted.” This indicates that heavy water injection is being used to lift the crude to ground level, a method used to maximize fields in heavy decline.

Thanks to Google Earth, anyone can take a peek at peak oil. Satellite O’Er The Desert is a blog that examines the images and according to the WSJ, has concluded that Aramco’s “massive redrilling at Ghawar is part of a ‘constant struggle to maintain the field’s current production level.’”

Interpretations of satellite images have their critics, from investment banker Matthew R. Simmons, author of the book “Twilight in the Desert,” to Nansen Saleri, Aramco’s former head of reservoir management. Saudi Arabia and other OPEC members have never revealed data showing the state of their production holdings.

As I wrote about in “Factors Fueling Oil Prices,” the planetary energies of Uranus in Pisces and Pluto in Capricorn relate to oil becoming increasingly more difficult and expensive to extract. Today’s Journal article cites Mexico’s Cantarell and Kuwait’s Burgan fields have lost their vitality and “need help”. Alaska’s North Slope and the North Sea platform is in “serious decline.” The North Sea and Venezuelan production show “sharp subsidence rates” (surface collapse that could indicate heavy depletion rates underground). Throw in continuing geopolitical tensions in Nigeria, Iraq, and Iran that I see only escalating this summer, and you’ve got continued high crude prices. Moderate relief is possible; not through cutting the gas tax, but by the Federal Reserve raising interest rates to tame inflation.

As analysts now view crude’s next leg up to $140 a barrel, people need to realize that it is not in the Saudis and OPEC’s best interest to have the price of crude at these levels. If they could, they would increase production in an instant to bring the price down to a level that would be palatable enough to curtail a western push to converting to an alternative energy sources. This is why production specs are kept secret. The Arabs have used sovereign wealth funds to make western investments as one method to begin weaning themselves from an oil-based economy.

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Mars in Leo Fuels World Leaders Egos

Mars, the planet of action and energy, will be in fiery Leo from May 9 to July 1, 2008. The long transit of Mars in Cancer brought energy and attention to domestic issues, from the housing crisis to out of control food prices. These issues are too severe to be alleviated anytime soon as they are influenced by multiple planetary energies, but Mars in Leo handles them in a different style.

General Influences:
With Mars in Leo, action and energy focus on personal recognition as people tend to express themselves more dramatically. Since Leo rules the Sun, the center of our solar system, Mars in Leo energy vies to be the center of attention. There’s an overall greater feeling of self-confidence. People are more active in sports and leisure activities, family fun, and romance. Mars rules muscles and inflammation; Leo the heart. There will probably new information reported on inflammation’s role in heart disease. Mars in Leo raises temperatures.

Stockmarket Influences:
I view Mars in Leo as the archetype of the day or very short term trader. Positions are taken for pure speculation with the objective to get in and out of the trade as quickly as possible. (This is because all forms of speculation are ruled by Leo.) Market pundits will probably tout “this is full bull ahead”, at least at the beginning of the cycle since Jupiter (optimism and expansion) is stationary* on May 9.

The last time Mars was in Leo was June 3 to July 22, 2006. (Mars takes about two years to return to the same sign it was in.) The stockmarket was concerned about inflation then, and several countries raised interest rates during that time. Mars, particularly in a fire sign, tends to elevate interest rates. Housing was also a concern. On July 19, 2006, Bernanke said: “The downturn in the housing market appears to be orderly.”

Mars will oppose the February 6, 2008 solar eclipse on June 10, which will return attention to issues prominent at that time, especially as Mercury will be retrograde.** Home builder Toll Brothers (TOL) stated then they “see no end to the housing market disarray.”

Mars opposes Neptune for June quadruple Options expiration. When Mars meets with Neptune, inflation and investment bubbles come into focus. This planetary alignment last occurred on July 5, 2006. Oil hit a record, and the market was down on geopolitical concerns about N. Korea and Iran. Since Leo is ruled by the Sun, it will be interesting to see how solar energy stocks react during this time.

Geopolitical Influences:
Mars in Leo influences leaders to act more aggressively. Look for Bush and Cheney to ratchet up the drama towards “axis of evil” nations. As Mars transits Bush’s first house of the horoscope relating to the self, the President will seek to grab the spotlight from the candidates competing to succeed him. Iran and North Korea are particularly in focus around the Gemini New Moon cycle phases of June 10, 17, and 26. Other countries activated during Mars in Leo: China, Iraq, Israel, India, Pakistan, and Syria.

Mars will oppose the USA’s Moon in Aquarius at the time of the Last Quarter Moon on June 26. The public is likely to be upset with actions taken by corporate and government leaders. Aquarius’s ruler Uranus will be stationary then, an energy that sharply increases the public’s desire for a radical change of course in financial matters and foreign affairs.

Look for more details on Mars in Leo and other planetary influences in upcoming Weekly Forecasts and New Moon Cycle reports.

*Jupiter will be retrograde from May 9 – September 8, 2008. Planets do not really move backwards, but appear to from Earth’s vantage point. Jupiter retrograde is a time to refocus professional goals.

**Mercury will be retrograde from May 26 – June 19, 2008. Put the Re prefix in front of everything you do during this period: reconfirm, review, revisit, revise, etc. to alleviate communication snafus.

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Factors Fueling Oil Prices

Oil continued its upward trajectory, with West Texas Intermediate crude closing at a record $119.37. The futures market is not looking for the oil bubble to pop any time soon, as the entire forward curve is trading above $100 to December 2016.

Crude and other commodity speculation has surged as a hedge against inflation and the falling US dollar. The world hasn’t seen a speculative surge of this magnitude since the late 1970s to 1980. This corresponds to the last time Saturn was in Virgo. Saturn here relates to supply constraints of basic materials needed for daily living. Oil primarily relates to Neptune, as this planetary energy rules chemicals. Neptune rules Pisces, the sign that Uranus has been in since 2003. Because Pisces/Neptune rules the sea, unexpected oil discoveries are likely to be found at much deeper levels further out at sea. Uranus represents sudden and sharp price movements and unpredictable trading patterns.

The quickest way to burst the speculation pushing up oil and commodities is for the Federal Reserve to raise interest rates until the carrying cost of the contracts outweighs possible gains. As long as the Fed continues its overly accommodative monetary policy, oil will continue to have strong support.

Even after removing the speculators out of crude, prices will not fall as far as people anticipate. In order to get crude to crash, clean and economically viable alternative sources will need to enter the energy market. “Peak oil” is a bit of a misnomer. Earth has lots of oil, but the largest supplies are located in the most inhospitable areas of the world – geographically and geopolitically, so crude continues to become more difficult and expensive to extract. In the 1990s it cost $4,000 to add 1 barrel of daily production capacity. Today it’s about $16,000. Production costs at Alberta’s tar sands cost about $65 a barrel. Pluto represents things that are below the surface. In Capricorn from 2008-2024, it represents the reality that oil companies must dig deeper. The greatest yields will be found in the coldest and most inhospitable locations on Earth.

OPEC reiterated at the International Energy Forum yesterday there’s no need to pump more oil now. Exports are not increasing as the development boom in the Persian Gulf nations has caused electricity shortages. Natural gas and water injection used to power the oil fields gets periodically diverted to power plants during peak electricity demand. Uranus rules electricity and power disruptions. Saturn will oppose Uranus between Autumn 2008 and Summer 2010, heightening the likelihood of global power disruptions.

Saudi Arabia:
Supplies more than one fourth of the world’s known recoverable reserves, producing 11 million barrels a day (b/d). The Kingdom plans to increase capacity to 12.5 million b/d by 2009 and then halt capacity expansion. The oil minister told Petroleum Argus over the weekend that the world doesn’t need more Saudi oil through 2020.

Today’s Wall Street Journal talks about how it is becoming more difficult and expensive to continue production yields in established fields. The Saudis have spent $15 billion to reopen their Khurais field that was last in production one Saturn cycle ago. For every 1 barrel of oil extracted, they must inject 2 barrels of seawater into specially built structures. Saudi Arabia’s only other new major source is Manifa, located offshore in the Persian Gulf and expected to come online in 2011. Labor and steel shortages are not helping matters.

Nigeria:
Nigeria is Africa’s largest oil exporter at about 2.47 million b/d. It has high quality, light crude, but a fifth of its production is on hold due to escalated violence. Shell declared force majeure* today on April and May delivery contracts, affecting 400,000 b/d after a pipeline at its Bonny fields was attacked. Looking at Nigeria’s horoscope shows that violence will continue to affect production capacity.

In an internal report obtained by the Financial Times last week, Nigeria risks losing a third of its oil output by 2015 unless it can receive investment aid from foreign energy companies. China has already given the government a $500 million loan and is expected to lend an additional $2 billion for infrastructure projects in an effort to win access to energy exploration rights. The primary foreign oil companies in Nigeria are ExxonMobil (XOM), Royal Dutch Shell (RDS-B), and Total (TOT).

Russia:
After producing 10 million b/d in 2007, the International Energy Agency announced last week that Russian oil output fell for the third month in a row, the first decline in 10 years. Leonid Fedun, the vice president of Lukoil, said Russia needs $300 billion during the next 8 years just to maintain current levels. More sources of oil exist in the harsh conditions of eastern Siberia where no real infrastructure exists.

Blame the Russian government for:

• 80% of oil revenue is taxed = $27 per barrel. An oil company’s estimated income after all expenses is about $11 per barrel.
• Companies cannot have more than 51% participation in new oil fields.
• Rosneft, Exxon’s state partner in the Sakahlin-1 field says Russia is limiting its expansion. Rosneft estimates production will decline 25%+ in 2008.

Brazil: (potential bright spot)
Tupi field discovered in 2007 has estimated reserves of about 8 million barrels.
State owned Petrobas announced last week the unconfirmed reports of potentially 33 billion barrels in a “pre-salt area.” The oil is 6,000+ feet beneath a further 10,000 feet of sand and rocks and a 6,000 feet thick salt layer.

*Declaring force majeure protects the company from litigation if it fails to deliver on its contractual obligations to buyers.

Related Post: “Horsing Around About Oil”

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From Russia, with Arms

Yesterday’s arrest at the Sofitel hotel in Bangkok of Russian arms dealer Viktor Bout by Thai authorities on behalf of the U.S. Drug Enforcement Authority (DEA), was a manifestation of the current planetary influences of Mars (weapons) opposing Pluto (secret deals).

The transit of Pluto in Capricorn will expose government and business leaders who are operating for their own personal power and profit, rather than in the best interests of humanity. Mars in Cancer is rapidly exposing what’s really going on in the world to the public. This is a wake up call to the world that none of the players in this game are clean.

Viktor Bout describes himself as a “businessman.” Bout was born with the Sun (self-identity) and Mercury (communications) in Capricorn, the sign of the executive. People with Capricorn energies are usually highly ambitious, sometimes to the point of being willing to break the law to succeed. (Bout is described as a “rogue arms dealer”. The other Capricorn in the news, Jerome Kerviel is the “rogue trader.”) With his Sun conjoining Mercury, Bout is fluent in six languages and carries a plethora of passports under multiple identities.

Bout began his career in the Soviet military. After the USSR’s breakup, he began purchasing Soviet cargo planes to buy gladiolas in South Africa and sell them in Saudi Arabia. This fits with Bout’s Mars in Libra, a sign ruled by Venus (beauty). Bout has Venus in Aquarius, which rules airplanes. (At one time, Bout controlled the largest private fleet of Soviet-era cargo planes in the world.)

With his Sun and Mercury challenging his Mars and harmonizing with his Pluto, Bout was motivated to make more money by entering the arms bazaar. The planetary relationship between Bout’s Sun to Saturn in Pisces and Neptune in Scorpio also assisted him to assume other identities and arrange secret deals. With his Sun opposing Jupiter in Leo, it was a global enterprise that eventually made Bout king of the arms dealers. Bout got the star treatment in the 2005 movie, “Lord of War” starring Nicholas Cage. (Despite Cage and Bout sharing the Sun, Mercury, Venus, and the generational planets Uranus, Neptune, and Pluto in the same signs, Bout told a Russian TV channel that it was “a bad movie.” “I’m sorry for Nicholas Cage.”)

Having his Mars in Libra, the sign of balance and fairness, made Bout an equal opportunity arms dealer. He didn’t discriminate who he sold weapons to, as long as he was making lots of money. His deals ranged from carrying humanitarian aid for the U.N. in Africa to funneling arms for former Liberian dictator Charles Taylor.

In July 2004, The U.S. Treasury froze all of Bout’s assets that were under their jurisdiction, followed by companies associated with him. Saturn in Cancer was opposing Bout’s Capricorn Sun/Mercury, representing a limitation imposed on the fruits of his career. Pluto in Sagittarius was squaring his natal Pluto, representing a powerful entity challenging his global reach. The U.N. followed with sanctions on Bout in 2007.

The sanctions relegated Bout to living in Russia where he would be protected from extradition. Bout’s progressed* Venus and Saturn now conjoined in Pisces, a planetary manifestation of the fact that an estimated $6 billion of his assets were now frozen, dissolved from his hands. In November 2007, Bout succumbed to an offer to travel to Thailand to sell a hundred surface-to-air missiles, armor-piercing rocket launchers, and combat helicopters to the rebel group FARC.** Yesterday at the hotel, Bout and his associate, Andrew Smulian, found themselves sitting face to face with DEA agents posing as FARC buyers. Transiting Uranus (shocks/surprises) in Pisces (deception) is conjoining Bout’s progressed Mercury. The Pisces New Moon today is also aligned with his Mercury. Jupiter in Capricorn is aligning with Bout’s Sun/Mercury, making him feel optimistically emboldened that he could pull off the deal and make it back to Russia without being caught.

Capricorn is all about law and order, and the moral of the story is that in the end, crime doesn’t pay. Pluto in Capricorn will show that things are not what they appear to be. Despite knowing Bout was supplying the Taliban in Afghanistan after 9/11, the U.S. military used Bout’s services to ship materials for the military and their contractors to Iraq after the 2003 invasion. In their book, “The Merchant of Death”, Douglas Farah and Stephen Braun say they have proof that Bout came to the U.S. on a couple of occasions after 9/11 to make a sales pitch for services to help the U.S. fight the Taliban and al Qaeda in Afghanistan.

The DEA order for his arrest on conspiracy charges was issued on February 27, possibly under a Void-of-Course*** Moon in secretive Scorpio; it may be awhile before Bout arrives in the U.S. The government is eager to prosecute, but if he continues to be confined, Bout may be just as eager to reveal all of the government’s dirty dealings to the public.

*A mathematical method of prediction that calculates the birth planets forward in time.
**FARC (Revolutionary Forces of Colombia), are a rebel group that seeks to overthrow the Colombian government. Cocaine sales help to fund their arms purchases.
***When the Moon (our emotional barometer) does not form any relationship to a planet before entering a new zodiacal sign. Actions taken during this time may not turn out as planned.

Viktor Bout: January 13, 1967 time unknown Dushanbe, Tajikistan
Nicholas Cage: January 7, 1964 5:35 AM Harbor City, California

Referenced Articles:
Global Policy Forum: “Viktor Bout: From International Outlaw to Valued Partner”
The New York Times: “Russian Charged With Trying to Sell Arms”
The Wall Street Journal: “Alleged Arms Dealer Arrested” (online for subscribers only)

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Shooting Down the Satellite

The Defense Department publicly announced on February 14 that the Navy will shoot down a damaged spy satellite expected to crash to Earth on or before March 5. The school-bus size satellite contains 1,000 pounds of hydrazine fuel, which the Bush Administration says would be hazardous to humans if dispersed over a populated area.

NROL-21 was the first satellite launched by the United Launch Alliance, a partnership between Boeing’s (BA) Delta and Lockheed Martin’s (LMT) Atlas rockets, for the National Reconnaissance Office. The satellite was launched on a Delta II rocket on December 14, 2006 at 1:00 PM PST from Vandenberg Air Force Base in California. The chart is ruled by Mars which conjoins Mercury and Jupiter in the eighth house of secrets, spying, and toxic waste. Mercury and Mars challenged Uranus (shocks/surprises) at the launch, which explains why the satellite immediately malfunctioned. Ironically, the Administration optimistically believes (Jupiter) that it can solve the problem by harnessing the same energies that caused the problem: by shooting (Mars) the satellite down over the ocean (Uranus in Pisces, which rules the sea). The order was given to the Pentagon on January 4, when the Moon was in Sagittarius and conjoining the launch chart’s Mercury, Mars, and Jupiter.

The Navy has modified three SM-3 medium range missiles aboard the Aegis destroyer USS Lake Erie. Accompanied by the USS Decatur and USS Russell, the Erie will fire the missile from somewhere in the northern hemisphere of the Pacific Ocean. The window of opportunity will begin soon after Space Shuttle Atlantis has landed (scheduled for February 20 at 9:06 AM EST). If the Navy misses, they will wait a couple days and try again. I think the most likely dates the single and/or follow-up attempts will occur are February 24, 28, and March 2.

The Administration has ordered FEMA, the agency that put Hurricane Katrina victims in toxic trailers, to have six rescue teams at the ready across the country in the event the toxic fuel disperses into the atmosphere. Mars is in Gemini until March 4; it can physically represent the affect of burning lung tissue caused by breathing in hydrazine-laced air. This can also represent the Navy taking more than one shot at the satellite. Mars opposing Pluto through mid-March raises the possibility of toxic fallout.

Eclipse influences can be felt for several months afterwards. The February 6 solar eclipse and the February 20 lunar eclipse charts for the U.S. emphasize the land and environment. With Mercury (breathing) and Neptune (chemicals) conjoined with the solar eclipse, it does raise the potential of fallout and its effects on the public’s health. Mars is prominent in both charts, which can represent aggressive action by or towards the U.S. Another nation could threaten or use military action if any fallout lands on their territory.

Critics have said that the real reason the Administration wants to shoot the satellite down is to prevent its highly classified contents from reaching enemy hands (Mars opposing Pluto). With such an emphasis on the houses of espionage (eighth and twelfth), as well as the Sun aligned with Pluto in the satellite launch chart, this is a valid point. My question to the government and the defense contractors is why use such toxic material when there’s always the possibility that a satellite will fail and crash into an inhabited area?

Hopefully the satellite ends its life similar to Skylab one Saturn cycle ago when Mars was also in Gemini, with zero to minimal adverse impact.

My primary source for information regarding the satellite shootdown plan was Department of Defense news briefings. Other sources used were various reports released since February 14 by the Associated Press and CNN.

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“Pointing fingers at the plutocrats”

On the first day of Pluto in Capricorn, the Telegraph is “pointing fingers at the plutocrats” – investment bankers, hedge fund managers, private equity partners, and performers. “These inordinately wealthy people are British, or American, or Russian in name, but they are essentially stateless, living where the taxes are lowest and where the opportunities to increase their net worth are greatest.”

The Telegraph articles which are excerpts from Robert Preston’s book, Who Runs Britain?, blames the rise of Britain’s plutocrats on former PM Tony Blair “who decided it was preferable for Labour to be financially dependent on wealthy individuals”. On a comparative basis, these plutocrats receive a far more favorable tax treatment than the average Briton. (In America, this is called “trickle down economics”. Give the wealthy tax breaks; give corporations financial incentives to set up shop in your state or locality, and this wealth will “trickle down” in new jobs and spending for the local economy.)

In the end, the new math of these financial wizards has resulted in few new jobs, a hyper-inflated property market, record consumer debt, and a credit crisis. A look at the horoscope of the United Kingdom bears this out. Venus (banking and finance), is the ruler of the UK chart. Venus in Aquarius is located in the fifth house of speculation, sport, and entertainment. This is also where the UK’s natal Pluto resides, and this is how the plutocrats make their millions. Venus squares Mars in Taurus (a sign ruled by Venus), in the eighth house of taxation, and also squares Neptune in Scorpio in the second house of banking and the economy. This reinforces the false belief that a few wealthy and powerful individuals can be depended upon to keep the economy buoyant.

The UK’s Uranus is in Libra (a sign ruled by Venus). Pluto in Capricorn squares the UK Uranus in early spring and at the end of 2008 into 2009. As both Uranus and Pluto relate to extremes, there will probably be more large financial shocks reverberating through the UK, and a demand for complete overhaul of the banking, securities, and tax code. For the plutocrats, life in merry old England may no longer be so merry after all.

United Kingdom Act of Union: Jan 1, 1801 12:00 AM GMT Westminster.

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The Bank vs. Bernanke

If the Federal Reserve continues to lower interest rates, it is possible that a new carry trade may emerge: borrow Treasuries to buy Sterling.

I know that seems far-fetched, but the Bank of England’s interest rate stands at 5.5% - already a 2% spread. The text of the speech that Governor Mervyn King gave in Bristol, England last night is quite interesting. Countering Bernanke’s beliefs without mentioning the Fed, King said that “The re-pricing of risk that is still continuing is not a process that we should try to reverse.”

King elaborates: “Although central banks can and will respond to the consequences of strains in the banking system for their economies, the solution to the underlying problem does not rest with them but with the banks and financial markets themselves. Banks must reveal losses promptly, and most importantly, raise new capital where necessary."
This is the clear philosophical difference between the BoE and the Fed. The Governor is telling banks and the markets that they made their bed and now they must lie in it. It’s not the BoE’s job to prop up the London Stock Exchange.

And here’s the kicker. King believes “The adjustment which not only the British but the world economy is experiencing is necessary as the imbalances, between spending and saving and between domestic demand and trade, unwind. As part of a longer-run rebalancing of the UK economy, an increase in our national saving rate, both private and public, is necessary. Unless we spend less and save more, our current account position will deteriorate.” (Italics mine.)

I guess American Express (AXP) doesn’t air their “The more we spend, the more we save” commercial in the UK. To the Fed, Wall Street, and the U.S. government, such beliefs are sacrilegious. Here the idea is to keep the consumer in debt up to their eyeballs so they’re slaves to the government to do whatever they want with them in the name of “national security”. Low rates encourage those who do have cash, along with local government and pension funds, into risky investments to obtain even reasonable yield.

Unlike the Fed, King is clearly concerned about inflation’s adverse effects worldwide:
“Inflation has picked up in the industrialised world. It is now 3.1% in the euro area and 4.1% in the United States. (Bold emphasis mine.) And although consumer price inflation here is close to target at 2.1%, three developments now threaten to push it significantly above target this year. First, oil prices are around $90 a barrel, although they have fallen back in recent days. In August, the price was $70. Second, oil price increases have been accompanied by rising gas prices in wholesale markets. And this month we have seen announcements from suppliers of increases in household gas and electricity bills of the order of 15%. Third, world food prices have risen sharply as a result of strong demand growth on the one hand and poor harvests from South Australia to North Carolina on the other. Food prices on world markets are a third higher than they were six months ago, and that has been feeding through to prices in the shops. Food price inflation in our own Consumer Price Index reached almost 6% in December."

"So 2008 is likely to see higher energy prices, higher food prices and, with a lower exchange rate, higher import prices, pushing inflation above the 2% target. It is possible that inflation could rise to the level at which I would need to write an open letter of explanation, possibly more than one, to the Chancellor. Although there is little we can do now to avoid some rise in inflation this year, the task of the Monetary Policy Committee is to ensure that it is short-lived. (Italicized emphasis mine.) If inflation expectations were to pick up in the wake of a rise in inflation this year, then only a more prolonged slowdown would allow inflation to return to target. But if the rise in inflation does not affect longer-term expectations, then
inflation could start to fall back towards the end of the year.” The Bank’s bottom line is that “We are determined to keep inflation on track to meet the 2% target in the medium term.”

King concluded his speech by basically saying that the volatility in the markets has to play out. Unlike the Federal Reserve, it appears that the Bank of England knows their role:

“Although we have little control over the strength of the economic winds buffeting our economy, our framework of inflation targeting does, as I said in my first speech as Governor almost five years ago, provide a seaworthy vessel. We cannot avoid some volatility in the short run and it is important that everyone understands the limits to the ability of central banks to smooth the economy. But, by keeping our eye firmly on the need to keep inflation close to target in the medium term, we can reach the calmer waters of low inflation, steady growth and a better balanced economy. And our policy framework will, I hope, allow you not to be overwhelmed by the headlines and to focus on what really matters for our future prosperity – the successful running of your own businesses.”

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Horsing Around About Oil

I find it interesting that President Bush always seems so relaxed when hanging out with the Saudi royal family. I’ve never seen the President hold hands or break out dancing with other world leaders except King Abdullah. I guess the President feels you’ve gotta do what you’ve gotta do to suck up to the world’s biggest oil producer.

In an interview on ABC’s World News Tonight yesterday, the President talked about making his case to the Saudis to increase oil production, that high oil prices are crimping the U.S. economy. Of far greater interest was the President’s remark that “If they don’t have much more to put on the market, it’s hard to ask them for more.”* Does the President know something that we don’t – that Saudi Arabia faces peak oil?

Bush’s idea of alternative fuel is ethanol, a corn-based product that uses more energy than oil to produce and yields less mpg. It adds to the cost of food for all Americans, but hey, at least the farmers are helped (think Iowa). The President (and most politicians) would not dare legislate that Detroit bury their SUVs and build more fuel efficient vehicles now, let alone tell the American people that they need to do their part by consuming less energy.

President Bush tells Americans that we must spend more money and troops fighting “the enemies of freedom and democracy” while cozying up to Saudi Arabia, where bin Laden and the majority of the 911 hijackers were from. We must sell $20B of military weapons that include smart bomb technology to them. We must allow them to use their sovereign wealth to bail out the banks and brokerages.

The Bush doctrine comes down to this. Use the talk of spreading freedom and democracy around the world to justify war and aggressive policies. However, repressive regimes that have what America wants are exempt. As a woman, I am particularly outraged at our kissing up to Saudi Arabia – the only nation where a woman cannot drive. Those horses Bush is viewing are treated far better than women in Saudi Arabia.

* I believe I’ve quoted the President pretty accurately. This was an interview Bush gave to ABC’s Terry Moran. I went to ABC’s website, but was unable to find the clip.

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Accountability in Accounting

One of the problems with American accounting rules is just that. U.S. companies want very specific rules spelled out by the FASB (Financial Accounting Standards Board) so they can develop strategies to follow them “technically” but circumvent the “spirit” in which they were enacted. Rules by the IASB (International Accounting Standards Board) which is mostly followed by the “rest of world” corporations tend to be more broad-based.
The USA’s Sun (identity) challenges Saturn (rules and regulations), giving America a tendency to police and regulate everything. With Jupiter as the overall planet ruling the USA horoscope, lawyers and litigation play a major role.

So it is a refreshing development that the FASB and IASB are working together to create a single set of global accounting rules, which over 100 countries either follow or will adopt. Saturn in Virgo (accounting) harmonizing with Jupiter in Capricorn this year will make this process a lot easier for the two boards. Pluto, the planet of major change and transformation, will move into Saturn-ruled Capricorn this year until 2024. The structure of public companies will radically change to a global standard, which like the new accounting rules, U.S. companies will face the biggest impact.

Currently, companies book charges for M&A fees as goodwill on their balance sheet. Under the new law, fees charged by investment banks, lawyers, and accountants will have to be charged as a onetime expense, negatively impacting their net income for the quarter the expenses are charged. (The IASB estimates these fees average about 1.5% of the cost of the deal.) The deadline for companies reporting under GAAP (Generally Accepted Accounting Principles) is the end of this year. For companies using IASB rules, it’s July 2009.

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

Financial Times: “New M&A rules to hit profits” (p. 17 of the Companies & Markets section. I was unable to find the link for this article on http://www.ft.com/.)

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More Problems for Pakistan

The Pakistani government announced yesterday that elections originally scheduled for January 8 would be postponed until February 18.

February 18 is the day that Mercury is stationary in the sky, moving from being retrograde* since January 28 to direct motion. Mercury energies can create communication confusion resulting from problems implementing voting procedures. Polling places not open when they’re supposed to be, incorrect ballots, and people prevented from voting, are a few possible scenarios. The biggest concern is votes not correctly counted or manipulated.

In addition, the Moon is Void-of-Course (VOC) in Cancer in Pakistan until late that evening when it enters Leo. As readers of my Weekly Forecast know, VOC times are not times for doing things where a specific outcome is desired. The Moon in Cancer represents the people of Pakistan, and would especially represent women and Bhutto’s Pakistan Peoples Party. The Moon going into Leo late that day may represent Musharraf’s control on the country as Leo is the “king” and Musharraf is a Sun sign Leo. (Benazir Bhutto was assassinated when the Moon was in Leo.)

February 18 is two days before a Lunar Eclipse. The eclipse time period (January 30 – February 27) is not usually a good time to make major actions/decisions as new information surfaces after this time that is crucial to one’s plans. Mid-February is a very critical time for Pakistan as Mars (aggression, weapons) aligns with its natal Uranus (instability, radicals). Pluto (nukes, secret forces) opposes Pakistan’s Mars (military). In a worst case scenario, an opposing person/group has access to Pakistan’s nuclear weapons and could threaten to use it against Musharraf’s regime. The February 6 Aquarius Solar Eclipse opposes Musharraf’s Sun while Pluto challenges his Neptune. His judgment is very bad and he is possibly being blackmailed by a terrorist group.

America is all too familiar with what happens when an election is held when Mercury is stationary direct. We had enough of a problem then sorting out hanging chads without having to deal with nuclear instability.

* Planets do not really move backward but appear to from Earth’s vantage point.

Related Posts:
“Mars Mayhem”
“Benazir Bhutto”
“Our Man Musharraf”

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Benazir Bhutto

“I know that I am a symbol of what the so-called Jihadists, Taliban and al-Qaeda most fear. I am a female political leader fighting to bring modernity, communication, education and technology to Pakistan.” – Benazir Bhutto

Benazir Bhutto knew she was embarking on a dangerous and difficult journey when she left a comfortable life in London to return to her homeland. Critics chalk up her courage to Musharraf granting her amnesty of corruption charges leveled against her in the 1990s by the Pakistani government. It was believed one of the reasons Bhutto returned to Pakistan was to clear her husband’s name of accusations he stole the equivalent of millions of dollars from the government.

Whether her reasons where personal or altruistic – or a combination of both, Bhutto saw Pakistan spiraling down the dark hole of dictatorship and oppression and believed that her People’s Party could defeat it. Unfortunately like many leaders with a vision, she paid the price with her life.

Benazir Bhutto was born with the Sun in Gemini (communication, education) aligned with Mars (action) in Cancer (public). Shifting from a potential alliance with Pervez Musharraf to opposing him, was her way of finding the most expedient and pragmatic way to achieve her objectives. Transiting Pluto (death) and Mars (aggression) were opposing her Sun/Mars. The Sun rules Bhutto’s eighth house (death), and her progressed* Sun in Leo was aligned with natal Pluto there. When Bhutto “expired at 6:16 PM LT”**, the transiting Moon in Leo was exactly aligned with her Pluto. Bhutto’s fourth house of endings is ruled by Mars (weapons). Bhutto’s Venus in Taurus is here. Taurus rules the neck where the assassin’s bullet killed her. Venus also rules her career house. The alignment there of the Moon (public), Saturn (government) and Neptune (idealism/vision), shows the highest expression of these planetary energies would be to free the Pakistani people (especially women), from the oppressive beliefs imposed by Islamic extremists. The world will never know whether Bhutto learned from her past mistakes as prime minister and could have at last achieved the full potential of her horoscope.

* A mathematical calculation that moves the natal planets forward in time.

** Quoted on several news outlets.

Benazir Bhutto: June 21, 1953 7:59 PM (speculative) Karachi. Died December 27, 2007 6:16 PM Rawalpindi, Pakistan.

Related Post: “Our Man Musharraf” (11/7/07)

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Jupiter in Capricorn: December 18, 2007 – January 6, 2009

Jupiter enters Capricorn, an earth sign ruled by Saturn, for one year. These two planets broadly represent the overall business cycle of expansion (Jupiter) and contraction (Saturn).

Jupiter is in Capricorn about every 12 years. (Previously January 4, 1996 to January 22, 1997.) The last time Jupiter was in Capricorn and Saturn (in Virgo*) was November 16, 1948 – April 3, 1949 and June 28 – November 30, 1949. That cycle saw the founding of The People’s Republic of China and NATO. Look for major changes to both entities in 2008. World governments will shift their focus back to themselves.

Since November 23, 2006, Jupiter has been in its “home” sign of Sagittarius. Ever the optimist, this enthusiastic fire energy is determined to put a positive spin on everything. Jupiter in Sagittarius is overdone excess, and its alignment now with Pluto has exposed all the debt the U.S. has incurred. Jupiter in Capricorn makes its entrance at the same time Saturn’s energies are strong,** wringing out the excess to establish a solid foundation to build upon.

From a business perspective, this is a move from financial engineering to product engineering. Businesses will be focused on creating long term value for shareholders. Citigroup (C) already exemplified this by repurchasing their SIV assets and should show a renewed focus on the true business of banking.

* See my post, “Time to Clean Up: Saturn in Virgo” by scrolling down to the bottom of the Cycles section in the DIRECTORY.

** Saturn moves retrograde on December 19 and is stationary December 16-23. Planets do not move backwards but appear to from Earth’s vantage point.

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Pandas are the only thing China should export

Catching up with Barron’s early this morning, I was amused by an ad saying “Pandas aren’t the only China bears”. I’m crazy for the cuddly creatures and enjoy watching the pandas at D.C.’s National, Atlanta, and San Diego zoos. They never fail to put a smile on my face!

The Barron’s ad is for the ProShares UltraShort FTSE/Xinhua China 25 (FXP), a short ETF “built to gain value as Chinese stock prices fall”. I have no knowledge of this fund, and would strongly advise that anyone interested in this ETF read its prospectus carefully. (The smart investor always reads the prospectus, unlike state and local governments who would rather play the ignorant victim.)

The bottom line here is that China is not immune to a major slowdown in their economy. Planetary cycles are global in nature. Depending on the country’s horoscope, some countries may fare better than others during certain cycles, but will still be affected. China’s chart shows a contraction in its economy has already commenced and will be full-blown between July and September 2008 – just in time for the 8/8/08 Beijing Olympics.

Photo: National Zoo photo of Tai & Mei, 2/12/07.

LINKS:
National Zoo – 2 panda cams of parents Mei Xiang & Tian Tian and their toddler Tai Shan
http://nationalzoo.si.edu/Animals/GiantPandas/

Somesai – takes the best pictures of pandas on the web!
http://www.flickr.com/photos/somesay/

Atlanta Zoo – Cub girl Mei Lan and Mom Lun Lun
http://www.zooatlanta.org/animals_panda_cam.php4

San Diego Zoo – Cub girl Zhen Zhen and Mom Bai Yun
http://www.sandiegozoo.org/zoo/ex_panda_station.html

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Foreign Band-Aid

Market action is largely predicated on the belief that foreign investment can save U.S. credit and equities markets.

Jupiter, the planet of expansion has resided in its “home” sign of Sagittarius since November 23, 2006. Jupiter/Sagittarius rule anything considered “foreign”. This combination also rules philosophy, politics, religion, ethics/truth, lawyers/judicial system. This energy has given a big boost to foreign investment in the last year.

Pluto represents massive wealth and power controlled by an elite few (plutocracy). Pluto is the cycle of decay, death, and transformation. It represents secrets and things hidden below the surface. Pluto has resided in Sagittarius since January 1995, which has manifested in the globalization phenomenon. This transit saw the rise in religious fundamentalism/terrorism, as Pluto relates to obsessive extremist behavior and Sagittarius rules religion.

Now these two planets are coming together on December 11, 2007, as they do every thirteen years. Financially, this alignment represents issues revolving around big (Jupiter) debt/lending (Pluto). When these two planets last conjoined in 1994 in Scorpio (Pluto’s “home” sign), Orange County California defaulted on its municipal bonds.

The Street is playing out two foreign-related themes: that the U.S. economic situation is “decoupled” from the rest of world (so invest in anything foreign), and foreign investment will flock to the U.S. Jupiter/Sagittarius is about optimism and the belief that something or someone will keep Mr. Market moving happily upward. However, Pluto knows that things are never what they appear to be and corresponds to the overdone flight to safety in Treasuries.

Now that I’ve set the stage, Part II will explore more of the ramifications of this important alignment from a financial and geopolitical perspective.

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Our Man Musharraf

“I appreciate our relationship with Pakistan and his vision for democracy in Pakistan. I believe he’s committed to free and open elections.” – President Bush speaking to Pakistani journalists at the White House on February 22, 2006.

Last Saturday, Pakistan’s president and army chief Pervez Musharraf declared a state of emergency. Musharraf in a television broadcast said that this was necessary as “political interference” has led to the rise in Islamic extremism. All media outlets have been shut down. The country’s chief justice was placed under house arrest, and the army has arrested hundreds of lawyers throughout Pakistan.

Since 2001, the U.S. has given $11B in aid (60% through a Pentagon slush fund). So far it appears that the U.S. will not withdraw aid for fear it will diminish the U.S. efforts against terrorism.

On November 15, 2007, Mars in Cancer will be stationary and move retrograde.* Mars rules the military and military action. Mars will align with Pakistan’s progressed** horoscope Ascendant (nation’s identity). This is the day that Musharraf had said he would resign as head of the military. Around December 19, Saturn (limitations/loss) will station retrograde on his Mercury (thought process/news). At the same time, Jupiter (rules the lawyers) will challenge his Neptune (beliefs/illusions). Pluto (death/ transformation) will add further stress early next year. Ultimately, his power is rapidly eroding. At the same time in December, Jupiter will oppose Pakistan’s Mars. Here is a literal manifestation of the lawyers (Jupiter) battling the army (Mars).

What’s fascinating is that both Musharraf and Benazir Bhutto’s progressed Suns (self-identity) are aligned to either Pakistan’s natal Leo Sun (Bhutto) or the country’s progressed Libra Sun (Musharraf). Pakistan’s current leader and its former leader have many other ties to Pakistan’s chart. Reflecting the dualistic nature of her Gemini Sun, Bhutto represents the opposition Peoples Party and also made a preliminary power sharing agreement with Musharraf last month. As Neptune approaches opposing Pakistan’s Sun in mid January (the deadline for elections), a change in leadership may temporarily propel the country into a state of confusion. At the same time, Pluto (nuclear weapons) opposing Pakistan’s Mars could mean it’s not known exactly who has the warheads and where.

Pakistan is another country where the U.S. and especially this administration, claim to espouse freedom and democracy for all nations, yet actively support repressive regimes. The U.S. and President Bush will face Mars retrograde head on as Mars will station on our nation’s and Bush’s Cancer Suns. November 15, 2007 – January 30, 2008 is a time for a major review regarding the role of our military and our military actions abroad.

NOTE: Pakistan and India achieved independence from Great Britain at midnight on August 15, 1947. Geographic differences give the countries slightly different horoscopes. Mercury (communications) is India’s chart ruler. This reflect’s India’s prominence in the outsourcing business of call centers and information technology work.

* Planets don’t really move backwards, but appear to from our vantage point on Earth.
** A mathematical method of prediction that calculates the birth planets movement ahead in time.
Pervez Musharraf: August 11, 1943 time unknown New Delhi, India
Benazir Bhutto: June 21, 1953 time unknown Karachi

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Back in the U.S.S.R.

Inflation, that is. It’s become so pervasive in Russia that Putin is returning to Soviet-style price controls. In another example of Mercury retrograde*, Putin will freeze prices today back to October 15 levels on selected types of bread, cheese, milk, eggs, and vegetable oil until after December 2 parliamentary elections. As today’s Financial Times points out, inflation in Russia has already exceeded this year’s 8% inflation target.

Back in late August, I began posting about how Saturn (limitations) moving into earth sign Virgo (basic necessities, workforce population) would spike costs and create shortages. Since September 28 (and primarily until May 9, 2008), Mars is in Cancer. This transit elevates the cost of food and shelter. Jupiter moves from being in optimistic fire to practical earth Capricorn on December 18, 2007. Around that time, central bankers and world governments will have to face the reality that global inflation is a worldwide problem that cannot be ignored.

Financial Times’ “global inflation edition”: I’ve listed the articles below. Go to ft.com; it appears that you can register for free to access the articles. (I subscribe to the print edition, so I haven’t actually done this.)
“Russian food price controls ahead of polls”
“Bread and butter issue: Rising prices may herald the first global food shortage since the 1970s”
I also recommend these articles on Japan’s inflation (Go to the World section, click Asia-Pacific.):
“Cost of living goes up despite deflation”
“Producers to feel squeeze as retailers flex muscles”

Related Posts in the Predictions section:
*Looking Beneath the Surface: Mercury Retrograde in Scorpio (10/4/07)
Inflationization (9/28/07)
Bubbles Beyond the Bathtub (9/17/07)
Wheat Goes Wild (9/5/07)
Time to Clean Up: Saturn in Virgo (8/28/07)
Deflated Supply, Inflated Price (8/24/07)

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Alan Abelson Does the Math

Alan Abelson’s Barron’s column (“Feeding on Thin Gruel”), says: “Do the math, please. Start with 130,000. Add 30,000. Subtract 30,000. What do you end up with? Right you are: 130,000.”

As I had predicted in some Weekly Forecasts since July 22, President Bush would continue to increase troop levels in Iraq despite talk of reductions. Abelson writes: “We truly wish that the president’s optimism proves out.” President Bush was born* with the Sun in Cancer squaring Jupiter in Libra. This defines his use of patriotism and security to expand/implement his philosophical and religious convictions. The President will continue to paint a rosy scenario for Iraq until near year end, as transiting Jupiter in Sagittarius harmoniously aligns with several placements in his horoscope.

Abelson concludes his column’s Iraq segment by stating that “as David Rosenberg of Merrill Lynch recently observed, the enormous expenditures necessary have acted as a significant stimulus to the economy.” I find Rosenberg’s observation deeply disturbing to say the least. Endorsing the deaths of more troops than those that died in the tragedy of September 11 for the sake of wealth, oil, and power. If I was in charge of the U.S. economy, I would implenent productive projects to stimulate it such as developing technologies for full energy independence, fixing the nation’s infrastructure, and the space program.

* President Bush: July 6, 1946 7:26 AM EDT New Haven, CT.

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Bloody Oil

Finally a prominent public figure has the guts to come out and (write) what the invasion of Iraq is really about!

“I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil.” – Alan Greenspan in his book, “The Age of Turbulence: Adventures in a New World”, according to Bob Woodward in his Washington Post* article.

Oil comes under the domain of Neptune (chemicals) and Pluto (underground). These two planets were predominantly featured at the time of the Iraq invasion.** Neptune opposed Jupiter. This shows that the purpose of the invasion was based on false beliefs/misinformation (Neptune) that keep expanding (Jupiter). This is an aspect of unrestrained spending. Neptune rules Pisces. The Sun (mission) was in very late Pisces. This shows there was no clear plan of action, and that it would last far longer than anticipated. Interestingly, the chart’s Ascendant is the exact placement of Alan Greenspan’s Pisces Sun which gives him the courage to express the meaning of Neptune’s deceptive mask.

* http://www.washingtonpost.com/wp-dyn/content/article/2007/09/14/AR2007091402451_pf.html
** Iraq Invasion: March 20, 2003 5:33 AM BAT Baghdad, Iraq

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Now that’s what I call globalization!

There was a discussion on CNBC this afternoon about the Bank of China holding $9 billion in U.S. subprime mortgages and $700 million in CDOs.

If China stopped buying our debt, U.S. interest rates will rise. That in turn will lower U.S. consumer spending which in turn will provide less revenue for China’s military buildup.

They buy our toxic debt so we can buy their toxic toys.

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“Gut Feeling”/”The Terrorist Threat to the U.S. Homeland”

On July 10, 2007 – the day Mercury went stationary direct in Cancer* – Homeland Security Secretary Michael Chertoff told the Chicago Tribune that he had a “gut feeling” there may be a terrorist attack here in the U.S. this summer. Mercury, the planet representing communication, and Cancer, a cardinal (action-oriented) water (intuitive) sign, is all about thinking through feeling. The sign Cancer rules the breasts and stomach (“the gut”). Its foremost concern is emotional and physical security. When a planet is stationary, its energies are enhanced, so it’s important to take note of the information communicated last week. As Mercury began moving forward, Chertoff, appeared to be backing away from his earlier comments.

The National Intelligence Estimate released its report today (July 17), “The Terrorist Threat to the U.S. Homeland”, which stated that the “U.S. currently is in a heightened threat environment.” My June 16, 2007 post on The Summer Solstice (see Predictions or Commentary section) stated the probability of an attack or attempted attack in the USA. The Solstice period is June 21- September 23, 2007. If an attack occurs, it will not be near the magnitude of September 11, 2001. The most likely time is late August to mid-September which is between two eclipses that affect the USA as well as other world charts. Other potential times of geopolitical unrest are around July 23-25, July 27, July 31, Aug 2, 6-7, Aug 10, Aug 20, Aug 28, Sep 3, 5, 7, 11, 13.
* See my posts, Mercury Retrograde, Mercury Retrograde Part II in the Predictions or Commentary section.

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