Thursday, January 8, 2009

Financial concerns ahead

In the SAMVA USA chart, the transits in coming months suggest increased concerns about financial stability in the USA. One result could be a drop in the value of the dollar.

A review of the dollar shows that it has fluctuated quite a bit since 1973. Recently, the volatility has increased, with the dollar on a weakening trend from early 2003 to mid 2008. During the
crisis in the fall, there was a well known phenomena of a 'flight to safety' as investors with positions in other international currencies moved their funds into the US dollar for safe keeping. This sharply reversed the earlier down-trend and the dollar strengthened. It is now predicted that the growing debt of the US government will shake the confidence of investors with potential ramifications for the dollar, which could again weaken.

Late 1978
In 1978 the dollar weakened and reached a trough in October of that year when transit stationary Ketu at 3° Pisces and 9th house afflicted natal Jupiter at 4° Scorpio and 5th house. Transit Jupiter also afflicted Mercury as 3rd lord in Capricorn and 7th house. As 6th lord Jupiter rules over financial stability in the chart and inflation became a growing concern during the latter part of the 1970s. In the closing months of 1978, transit Saturn as 8th lord of obstacles also became stationary on the most effective point of the second house of wealth. Even if the favourable Mercury-Sun period was operating, these stationary transit afflicitons increased worries about "stagflation" - a combination of sluggish economic activity and rising inflation.

Early 2009
A similar combination will occur in the first half of 2009, when the Venus-Jupiter and Venus-Saturn periods are operating. At that time, transit Jupiter will become conjunct transit stationary Rahu at 15° Capricorn and 7th house. The Jupiter sub-period is running until mid February. As Jupiter is weak in Capricorn, its sign of debilitation, its indications will likely suffer during such a time. Transit Jupiter will also afflict natal 3rd lord Mercury. This suggests concerns about financial stability will again become prominent among investors, which could reduce confidence in the US dollar. The cause will likely be the new and more expansionary economic policy of the Obama Administration, which needs to be financed by attracting foreign investments into US assets. In relation to the dollar, we should in particular note the transit of 2nd lord Sun which will become conjunct the transit stationary Rahu at 15° Capricorn and 7th house in late January, shortly after a solar eclipse. From February 13, 2009 the Sun will also pass through Aquarius and the 8th house of obstacles and endings. Until this time, transit 8th lord Saturn in late Leo is also receiving an afflicting aspect from natal Saturn at 27° Scorpio. Moreover, from April to July 2009, after the Saturn sub-period has begun operating, transit 8th lord Saturn will become stationary at 21° Leo and the most effective point of the 2nd house. At this time, economic activity could become sluggish with also concerns about the nations' wealth and the strength of the currency.

Cautionary note
It should be pointed out that it is relatively more straightfoward to predict financial stability concerns in a country than the value of its's currency. At the same time, such developments are sometimes linked. Ideally, when predicting relative strength of currencies the national horoscopes of other countries should also be studied. However, as this is time consuming it is skipped here. While this reduces somewhat the confidence in the prediction for the currency it does not affect the confidence in the prediction for changes in the financial concerns.

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