Why the Fed May Never Do All of QE2

Today, please welcome our first guest astrologer, Elizabeth Gregory. Elizabeth is a well-known financial astrologer. Time permitting, she may occasionally check in on the discussion during the next few days.

Why the Fed May Never Do All of QE2

by Elizabeth Gregory

The Fed has issued an official time table for the purchase of: “$600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.”

There is another time table~a cosmic one~that strongly suggests those purchases may never be fully implemented, and could wind down significantly sooner ~possibly as early as the end of the first quarter.

That may seem difficult to comprehend as the Fed launches the program with a generous purchase of $100 billion in its first month. But it is always difficult to see the end of a bubble when we are in the midst of one, to loosely paraphrase a famous former Fed Chairman.

Viewed through the longer-term lens of astrology, however, this bubble does have a finite shelf life and a termination date.

We are presently navigating the final and most grotesque phase of the liquidity explosion that began when Uranus entered Pisces, March 10th, 2003. Eight years later, almost to the day, Uranus makes its final exit from Neptune’s sign, March 11th, 2011. [Note: Since it takes Uranus 84 years to travel around the Sun, it normally spends 7 years in a sign, but that can vary due to retrograde motion.]

The singular significance of Uranus entering Pisces ~the sign that Neptune rules~ was that Neptune, itself, had correspondingly been in Aquarius ~the sign Uranus rules~ since 1998. When two planets travel simultaneously through one another’s signs, it sets up a condition that astrologers call mutual reception. Think of it as cross breeding. When the pairing involves two of the strangest and most eccentric planets in our solar system, their bizarre offspring can radically destabilize the natural order of things..

So we had Uranus, the rule breaker, entering the watery realm of Neptune, where he encountered vast oceans of liquidity, even as Neptune was exploring the Uranian toy store of novelty and new inventions.

Soon we were celebrating “creative financing” that sent housing on a parabolic death shot to the Moon.

Those “zero down” or 125% and negative amortization mortgages may now reside in history’s house of horrors but they were only the first phase of this rocket ride that is now harnessing the booster power of Jupiter. Also known as the ‘great benefic,’ Jupiter can be a bit too generous at times, encouraging people to overextend and take undue risks. Traditional astrology gave Jupiter dual rulerships over Pisces ~ where he is currently traveling in tandem with Uranus ~ and Sagittarius, the sign of the speculator, which is where Ben Bernanke’s Sun resides.

No wonder “Helicopter Ben” is intent on inflating the greatest liquidity bubble of all time just as Uranus and Jupiter race toward their final collision on the 4th of January. That could well signal the peak of this liquidity experiment because Jupiter will exit Pisces January 22nd, reducing the strength of the tide well before Uranus severs its link to Neptune by exiting the sign in early March.

A world ever oblivious to these cosmic forces may attribute an early end of QE2 to the rising chorus of public distrust and newly acquired subpoena power of incoming House Committee Chairman Ron Paul; or, in the most mundane of scenarios, to the simple fact that the economy really does start to show signs of accelerating growth after the final Saturn-Jupiter opposition at the end of March [3/28/11].

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