Weekly Column: Here come the Biden Taxes

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Employers added 916,000 jobs in March and the gains from February were revised higher to 468,000 jobs, the Labor Department said Friday. Economists surveyed by Refinitiv expected the addition of 647,000 jobs. The unemployment rate, meanwhile, ticked down to 6%, its lowest level since the COVID-19 pandemic caused many businesses to at least temporarily close their doors in March of last year. The unemployment rate peaked at a record high of 14.7% in April 2020. – Jonathan Garber, “U.S. Economy Adds 916,000 Jobs in March – The Unemployment Rate Fell to 6%,” www/foxbusinessnews.com, April 2, 2021.

Mr. Biden says he wants “other countries to adopt strong minimum taxes on corporations” so nations like Ireland can no longer compete for capital with lower tax rates. Only in Washington would the left punish American employers in the hope that the rest of the world would be as self-destructive. “Here Come the Biden Taxes,” Opinion Page, Wall Street Journal, April 1, 2021. 

Let’s do a quick review of what has happened in world financial markets this year, and particularly since the first passage of Saturn/Uranus square on February 17. As a point of reference, keep in mind that the Saturn/Uranus waning square is the most significant and the longest planetary cycle in effect in 2021. It is the 11.25-year quarter cycle (third quarter phase) to the greater 45-year Saturn/Uranus cycle, which will reset when these two planets conjoin again on June 28, 2032. It is this writer’s position (backed by actual studies) that the Saturn/Uranus cycle and its quarter cycle phases are the most important of all geocosmic signatures correlating to the culmination of long-term financial market and political cycles.

Starting in Asia and the Pacific Rim, we immediately see the importance of the Saturn/Uranus square aspect of February 17. On that date, or within one day of it, the Australian ASX index made a yearly high at 7207. China’s Shanghai Composite also rallied to 3731, its highest level since August 2015. The Hang Seng of Hong Kong rallied to 31,183, its highest mark since March 2018. The Japanese Nikkei Index made a 30-year high of 30,714, and the Nifty Index of India made its all-time high of 15,431. All of these peaks were achieved February 16-18, 2021, as Saturn squared Uranus on February 17.

The performance of the European stock indices was much more erratic than in Asia and Australia. None of the markets we follow topped out on February 17. The German DAX and Netherlands AEX have continued to rally to new all-time highs as of this past week, on April 2, at 710 and 15,110, respectively. The Zurich SMI index rallied to 11,143 on March 26, which is close to its all-time high of 11,270 made on February 20, 2020, one year before. The London FTSE made its most recent high of 6903 on January 7, which was not even a yearly high. The UK is clearly the laggard in Europe, which is interesting because they are the furthest ahead in administering COVID-19 vaccinations. They are even ahead of the U.S. in this matter, whereas Germany, by contrast, is undergoing new lockdown measures along with some other European nations. This fits one of the narratives of Saturn/Uranus, where good news is met with lower stock prices and bad news accompanies rallies.

The U.S. equity markets were very strong last week, with both the Dow Jones Industrial Average and the S&P marching to new all-time highs on the last day of the shortened trading week, April 1. The NASDAQ Composite, on the other hand, still finds its all-time high intact as of – guess what? – February 16, one day before the Saturn/Uranus square. This is important because Uranus rules technology. It has the greatest correspondence to the NASDAQ Composite Index of all the major U.S. indices.

Last week witnessed notable behavior in other financial markets. Agricultural was highlighted, as both Soybeans and Corn made new multi-year highs on April 1 in their nearby contracts. Corn soared to 585/bushel, its highest price since July 2013. Soybeans rallied to 1456, their highest mark since May 2014. Uranus is the planet of extremism, as in extreme price moves and record-breaking prices. Uranus in Taurus, which rules agriculture, so this trend may continue a while longer.

Bitcoin rallied once again to 60,090 on April 2, very close to its all-time high of 61,780 made on March 13, right in the middle of our last two-star geocosmic critical reversal date-time band (March 12-15). In currency markets, the Dollar/Yen has rallied sharply as of late, hitting a new yearly high of 110.96 last week. On that same day, the Euro currency fell to 1.1702, its lowest price since early November 2020. This bullish trend in the U.S. Dollar conforms to the political cycle. That is, the U.S. Dollar tends to be bullish against other world currencies when the U.S. elects a Democrat as its president. Joe Biden, a Democrat, took office on January 20, 2021. The multi-year low in the U.S. Dollar was just two weeks earlier, on January 6, at 89.20. Last week it reached a new multi-month high of 93.43. Our previous advice to traders to diversify their currency exposure by adding non-dollar denominated assets (i.e., other currencies) to their portfolio is no longer valid as of January 2021 and the beginning of the new U.S. administration. Instead, the Dollar is the new “King of the Currencies.” It may stay that way for a few years now, until the next election and maybe even the one after that.

Short-term geocosmics and longer-term thoughts

Economists have done extensive work showing how lower corporate tax rates result in higher wages. Higher after-tax profits mean more corporate investments, which means more productive workers, whom companies can afford to pay more. In other words, Mr. Biden’s corporate tax increases will hit the middle class hard. This damage won’t show up immediately, especially as the economy booms as COVID eases this year, but the corrosive impact will compound in the coming years. “Here Come the Biden Taxes,” Opinion Page, Wall Street Journal, April 1, 2021.

Continuing with this thought of a new Democratic term in the U.S. presidency, we note two historical correspondences. First, both the Jupiter/Saturn synodic cycle and the Saturn/Uranus quarter cycle pointed to a change in party leadership at the presidential level. That is that the Democrats would win, and the then-current president, Donald Trump, a Republican, would be defeated. These correlative studies were discussed in both the Forecast 2020 book as well as during the ISAR September 2020 worldwide virtual conference, attended by over 1000 participants.

However, unseating the sitting president after only one term also broke a 16-year presidential cycle pattern where the victor of the 16-year Republican cycle (2000, 1984, 1968, 1952) usually won his re-election bid. Democrats also have a 16-year election victory cycle (2008, 1992, 1976, 1960, 1944). For the winner of the 16-year cycle not to be re-elected is something that has happened twice  since 1904. One of those times was the 1980 election when Ronald Reagan beat the incumbent Democrat, Jimmy Carter. The other occurred in the 1932 election of Franklin D. Roosevelt, who unseated Herbert Hoover, the Republican.  This begs the question: Will the years 2020-2032 have similarities to those of 1932-1944? There are similarities to the Saturn/Uranus cycle and its phases in both of these 12-year periods, not to mention that the 84-year orbit of Uranus was in the sign of Taurus then and is again now. Taurus is the sign of security and comfort. Uranus is the planet that is anything but stable and secure. It pertains to disturbances and unexpected, abrupt events. It also signifies major changes in policies that can (and often do) have unintended consequences. Nothing goes as expected, especially when Uranus is in a hard aspect with Saturn.

Shorter-term, there is reason to be optimistic. First, as my friend and colleague, Len Oppenheim, points out, the U.S. stock market has been up in the month of April for 15 of the last 16 years. Second, the Vernal equinox has Jupiter rising in Aquarius in Washington D.C. The summer solstice will also find Jupiter rising, but this time it will be in Pisces, the sign it co-rules with Neptune. The economy is likely to continue its cycle of growth through these two seasons. But that changes with the autumnal equinox on September 22 when Pluto (taxes) will be rising in Capricorn (government and the seeds of recession possibly starting to sprout).

In the near term, we have a slew of powerful shorter-term transits that correlate with sharp price moves in stock markets from April 6-29 and especially April 13-26. The Sun and Venus will square Pluto April 12-16, and Venus will conjoin Uranus and square Saturn (April 23-25). This week will find Mars square Neptune on April 9, which pertains to changes in Crude Oil prices. On a social and individual level, Mars represents courage and assertiveness, whereas Neptune pertains to avoidance and retreat. They are opposite, and the square is often an obstacle in need of being addressed and not avoided, although the urge to avoid is stronger than the need to confront. It is a passive/aggressive combination, so it may be wise to decipher what someone really wants and not pay too much attention to what they say they need, want, or will do. What is the real underlying motivation here? It is a wonderful combination for helping out others truly in need. However, one can also be prone to others taking advantage, and where one’s efforts to help may be wasted if dealing with people who are insincere or ungrateful. It can also be a time of vulnerability to infections (Mars is energy, Neptune can be leakage or loss of energy), so masking up and remaining 6 feet from others is still the prudent thing to do, even though Jupiter on the ingress ascendant in Aquarius (in the U.S.) suggest the urge to break out, party, and be free is even stronger.