Review and preview
According to the department’s Bureau of Labor Statistics, non-farm payrolls rose 943,000 for the month while the unemployment rate fell to 5.4%. The pay rise was the best since August 2020. Economists polled by Dow Jones had sought 845,000 new jobs and a headline unemployment rate of 5.7%. However, the estimates varied due to the contradicting headwinds and tailwinds for the labor market and an uncertain future course for the economy. Jeff Cox, “Salaries Up 943,000 In July As Unemployment Decreases To 5.4%,” www.cnbc.com, August 6, 2021.
And with this news, gold and silver were crushed along with currencies. The strong labor market report implies that inflation is a threat and the Fed must start lowering or raising rates to prevent the economy from overheating. The specter of higher interest rates is also lifting the value of the US dollar, which is nearing its annual high after ending a 2-week pullback. This is in line with the political cycle as shown in our forecasting books, where the US dollar rises under a Democratic presidency and falls under a Republican White House. Gold fell over $ 70 and silver nearly $ 2.00 after gold’s new cycle high on Wednesday. The report was bad news for commodities and currencies against the US dollar.
For stocks, however, it was good news, especially since the Fed has not announced that it will consider scaling back its expansionary monetary policy this year. Several world stock indices hit new all-time highs last week, including the DJIA, S&P, NASDAQ, as well as the AEX and SMI in Europe, the ASX in Australia and the Indian NIFTY index.
It’s been an excellent week for Bitcoin and Ethereum, both of which rebounded to their highest levels since their more than 50% decline in April-May. But it wasn’t as good for Treasuries, which, like metals and currencies, were pounded by Friday’s strong labor report.
It has not been an easy road to hit the new all-time highs in world stock indices over the past week. And the last week was downright brutal for holders of precious metals and currencies after it was still on Wednesday, April 4th.
This is the nature of markets when Uranus is highlighted. Last week, Venus trine Uranus on Tuesday and the Sun will square Uranus on Saturday, August 7th. That was a wild time for the financial markets, typical of Uranus, the loner. After the Sun / Uranus Square on Saturday and the new moon in Leo on Sunday, there could be a break here. New moons have a statistically higher correlation to the ridges than full moons, which here could correlate with another reversal. But Uranus becomes stationary retrograde on August 19th, the same day that the Sun is opposite to Jupiter. Hence, the sudden reversals and whip saws will likely last two more weeks until the full moon. The breakout to new highs can continue until then, if this new moon square to Uranus is not a reversal. Some engineering studies do not confirm this as a real breakout, but Uranus is not interested in engineering studies or support / resistance levels. They are just marks to break through.
Longer term thoughts
US household debt rose the fastest in years in the spring, driven by spikes in credit card spending and home purchases, the New York Federal Reserve said in a quarterly report released Tuesday. Between April and June total debt balances rose by $ 313 billion – the largest nominal increase since 2007 and the largest percentage increase since 2014. In total, American consumers held approximately $ 14.96 trillion in debt at the end of June, the highest amount ever recorded . – Megan Henney, “US household debt rose to nearly 15,000 USD in the second quarter, a new record,” www.foxbusiness.com/economy, August 4, 2021.
Senate minority leader Mitch McConnell made it clear Thursday that Republicans will not help Democrats with votes to raise the debt ceiling as Congress wrestles with a crucial deadline. McConnell, R-Ky., Railed against Democratic plans to pass a $ 3.5 trillion budget balancing bill without GOP support. He said that if the Democrats want to make “more reckless” spending on their own, they would have to raise the debt ceiling themselves. “Let me be very clear: if you don’t need or want our contribution, you won’t get our help,” said McConnell on Thursday from the Senate. “You will not get our help in raising the debt ceiling these ruthless plans require.” – Marisa Schultz, “McConnell Says GOP Will Not Help Dems With A ‘Reckless’ Debt Plan,” www.foxbusiness.com/economy, August 6, 2021.
Yes, everything seems so positive, and has been for most of the year since Joe Biden assumed the presidency on January 20, the fall equinox, when Pluto rises in Capricorn, square to an Aries moon.
In the meantime, here comes the next phase of the looming debt crisis, marked by a return of Pluto on the US charts. And nobody seems too worried, except maybe Treasury Secretary Janet Yellen. Politicians are more concerned about the power struggles of the matter than about the potential impact on the US and global economies.
This is not a problem to be lightly dismissed. Its solution requires compromise and agreement to avoid economic disaster. The article quoted above also states, “The debt ceiling suspension expired last month and Treasury Secretary Janet Yellen has taken exceptional cash holdings…. Congress is running out of time to raise the debt ceiling…. But if the debt ceiling is not raised or suspended, the US government will no longer be able to issue debt and will run out of cash soon. ”Will they agree to raise the debt ceiling before the liquidity runs out? Or will the government shut down and risk another credit downgrade like it did in 2011, when then-President Obama reached an agreement with the Republicans and then left at the last minute?
With Saturn also in the center of its dwindling square with Uranus, a dysfunctional government unable to compromise (Congress) can wreak havoc and disrupt normal daily activities by acting or failing to act when necessary. Saturn is time, as in deadlines. Uranus could not care about deadlines and limits of any kind. They are there to be hurt or used to free people from the bondage they impose. The problem in this case is that the idea of ”liberation” and “breaking boundaries” actually leads to less freedom and more servitude. Either the Dems have to compromise with the Republicans and reduce their demand for more and more funds (i.e., increase the debt), or the Republicans have to accept that raising the debt ceiling is no big deal for such a big economy in the long run. Nobody really knows the answer, but one side is willing to take the risk and negative consequences this could have for future generations (perhaps the current generation) and the other side isn’t. Both have a point.
The astrological hope is that there will be an agreement when Venus enters her ruling sign of Libra from August 16 to September 10. Perhaps it will happen before the U.S. government is forced to shut down its employees, take its employees off leave, and risk a temporary credit rating downgrade, which in turn would likely lead to a big sell-off in the stock markets. The possibility of a closure and a major stock market sell-off is also reflected in the fact that Uranus on the 19th will be a spectacular evening sight when the sun goes down and the moon rises with Jupiter next to it).
Uranus and Jupiter highlighted together (Aug 19th) may correlate with sharp price movements nearby. It can be even bigger when Mars is involved. In the following week (August 23), Mars will trigonize Uranus, but perhaps more importantly, Mars will cross the 15-19 ° “overloaded zone” of Virgo from August 23rd to 30th. It could get crazy and surreal. Incidentally, the same “charged degree” sector of the signs is referring to COVID-19, which is on the rise again around the world.
In addition, the Martian transit activates the Mars / Neptune square on the US map dated July 2, 1776 (or July 4). Everyone in Congress wants to appear as a hero and come to the rescue. But the entity being rescued doesn’t seem to like the color or shape of the safety net, so they want another liferaft to be thrown at them. This is Mars / Neptune: “I’ve tried to help you, but you don’t take my advice, so I’m giving up.”
This is not a time to give up the effort, nor is it in anyone’s interest to refuse genuine assistance. The positive side of this transition aspect is healing wounds, emotionally or psychologically. They keep trying and remembering: “Every decision I make is a choice between a complaint and a miracle.” (Deepak Chopra, 2009). Choose the miraculous path for the next two weeks and always.