AstroEcon 
Financial Astrology 
and Technical Analysis
On line continuously since January of 1996

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Written By Robert Hitt 

Posted 8/25/2007.. 8:00 PM

These are thinking persons updates. No Bradley or mechanical methods used here

Sometimes I wake up and a whole chapter in the story has been rolling through my head over night. I woke up humming this song today. My astro transits for today are VERY VERY strong stuff. The Mercury Mars Jupiter T square exact today is all over my chart like a Mike Vick pet. Ya I am alarmed. Take this rant with a grain of salt. 

Strange days have found us... Doors 1968

Strange days have found us
Strange days have tracked us down
They're going to destroy
Our casual joys
We shall go on playing
Or find a new town

Strange eyes fill strange rooms
Voices will signal their tired end
The hostess is grinning (Hillary?)
Her guests sleep from sinning
Hear me talk of sin
And you know this is it

Strange days have found us
And through their strange hours
We linger alone
Bodies confused
Memories misused
As we run from the day
To a strange night of stone

~~~~~

We will not know just how strange things really are until early in the coming week. What I see is VERY similar to mid April when a crash pattern was negated. An uncompleted pattern into a low and then smoke and mirrors to make the problem go away until some tomorrow is on the table now.  I lost track of exactly what has been thrown at the current problem but it is many many 10s of billions. Where did that $ come from? Yep right off the printing press diluting the capital of everyone who was NOT part of the problem. Rewarding unwise choices is never productive in the long run but it DOES get the incumbent politicians off the tar and feather hook for the time being. . 

The entire world economy now rests on the BELIEF that everything is OK. As soon as reality begins to creep in the foundations shudder. So what I see is reality as an increasingly unwelcome guest. The world is afloat on a sea of derivatives. These derivatives are backed up by other derivatives. And all of it is based on the FAITH that the party on the other side of the deal will make good on his bet.. and if someone cannot pay up the religious faith that the Fed and the other central banks will make it good. All belief.. All illusion. Yet it works .... till it does not. The productive people who are ATLAS in this situation must shoulder the burden. 

So far the equity correction is only about 8%. So far the correction is a simple ABC correction. So far this looks like February to April of this year with another round of liquidity driven new highs in the works. If that be the case some time in the next week or so there will be an emotive event that takes the focus elsewhere. Hey someone has to pay a price. Usually the price is paid by a group of people who have NOTHING to do with the problem.  Be it students or third world people minding their own simple lives. Ah and you thought the days of human sacrifice were over did ya? 

The rub is this. The smoke and mirrors will work as long as everyone plays along ... nod nod wink wink.. The way I see it is there has been a LOT of extortion in how this is working. Those who are holding a hand full of aces are going to press and then demand to be paid off with taxpayer money (and favors) like the August 16th bailout. 

There is a new bubble brewing. Lotsa people are scratching their head wondering where that will be. Seems obvious to me. It will be either a return to stocks as an inflation hedge or a move to gold /commodity to hedge against world wide competitive devaluation. With currency that is only backed up by faith I would NOT bet on stocks being able to keep ahead of the degradation of the currency that the prices are based on. 

I expect a new situation in the metals soon. With distribution of the physical metals being disorganized (mostly coin dealers) it will become a two tier market. If you want to hold paper that says you own gold it will be down at the official price that is being managed.. If you want to get the actual metal you have to wait for delivery. As of this time delivery takes a few days to a few weeks. The spread between paper gold and the real thing is not extreme yet because there is no sense of panic ... yet. The Chinese as recently as early this year had an official price for gold but then it was trading on the physical for citizens there at several hundred an OZ premium.  

If you feel like you are painted into a corner?? YOU ARE. 

What happens when the non western world begins to wake up and smell their paper assets burning up. What if the Russians and Chinese and the oil producers determine they wont play this game any more? What if there is a reverse Bretton Woods where those holding the natural resources decide they don't want our un backed paper any more? Should the current setup avoid the deflationary outcome that economic fundamentals demand there is only one outcome that can unfold.. A repudiation of the USD and it's sister currencies the Euro and Yen by those who still PRODUCE. So far the USA and UK have been able to impose paper money on the rest and is in fact a from of slavery... A defeat in Iraq will change that. And yes indeed this may be what the September astro is all about. A defeat. 

This is possibly the STUNNED meme I picked up last December when I wrote in the year ahead report I could not see clearly past September. I got a clear sense that something was on the other side of September that was outside of normalcy to a point where it was difficult to imagine. In the world we live in it is POSSIBLE that something happens in September (or late December) that will go right over the heads of the sheeple. A change in the rules so obtuse at first that it will not be understood by 98% of the public at first. Any kind of defeat in Iraq will reveal the emperor has no clothes. Now you know why Iraq was invaded in the first place and why shrub goes against public opinion and insists on staying. A defeat or even a withdrawal for political reasons sounds the death knell for the USD. 

It is possible Americans will wake up one day and see on faux news that their money has been halved overnight. Cheap imports shut off and oil doubled. And a crisis runs so deep that people will BEG for martial law so they can get in line at the rationing warehouses (Wal-Mart is already to go on this) to pick up a loaf of bread and a pound of butter. Oh but first you will have to get "chipped" to even get in line. 

IF we are lucky this will not be a reality until after the 2008 election. If we are lucky the latest bailout ploy will succeed in avoiding a meltdown into deflation in the near near term and the stock market will some how remain viable and avoid a cleansing crash into mid 2008. I say lucky because it will give us all TIME to get out in front of the problem. The meat of the astro problems ahead will be in the post 2008 election into 2010. 

The outcome I see will benefit holders of physical metals. But will benefit even more those that invest in things like farm land and the tools needed for a self sufficient lifestyle. There will be no freedom for those who do not prepare now. Those who do not prepare will be treated as "useless eaters". Goggle THAT term for a clue.. 

The only solution is that Ron Paul get elected president in 2008. There is simply no one else who has the guts to stand up against this gutting of our western civilization. This best case scenario will not make it much easier for average people in the next few years but we will still have a FREE country. We will be able to rebuild. We will be free enough to pursue happiness. 

We will definitely know the direction the country will be going in for the time period up to 12/21/2012 at the very latest by December of 2007 when Jupiter and Pluto are conjunct on the galactic center. As long as Ron Paul lives and is a viable candidate there is hope.

Nuf said for now.