Weekly Column: Democrats struggle for unity on spending bill

Review and preview

Treasury Secretary Janet Yellen said she was hopeful that the administration’s infrastructure package would be approved soon while saying she does not believe it will add to the inflation problems the U.S. has been experiencing. “It will boost the economy’s potential to grow, the economy’s supply potential, which tends to push inflation down, not up,” Yellen said. – Jesse Pound, Yun Lei, “Stocks Close at Record Highs, Market Notches Best Month of the Year Despite Big Tech Earnings Misses,” www.cnbc.com, October 29, 2021.

ECB President Christine Lagarde’s failure during a Thursday press conference to push back against market expectations of higher interest rates has brought out bears, with Danske Bank strategists expecting the euro to fall to $1.10 over the next 12 months. – “Dollar Climbs as Inflation Builds Case for Higher Rates,” Reuters, October 29, 2021.

Most world stock indices started strong last week, topping out by Tuesday, October 26, and then pulled back into Thursday-Friday. However, some indices rallied again and made new all-time highs on Friday.

In Asia and the Pacific Rim, rallies into Tuesday, October 26, were noted in Australia, China, Hong Kong, and Japan. Each then declined into Friday. These rallies were only secondary highs and not new all-time highs. The declines so far have been corrective, except in the case of China, which was more severe. India’s Nifty index topped out the prior week, October 19, and by Friday, October 29, they were making new 3-week lows.

In Europe, the Netherlands AEX made another new all-time high on October 26 and the London FTSE made a new post-pandemic crash high then as well. Germany’s DAX posted a secondary high that day and the Zurich SMI had a secondary rally into October 28. But most declined into Friday as Europe now contends with the possibility of a weaker currency, making their equity markets slightly less desirable against other currencies.

The benefit of the weaker Euro was the Dollar and dollar-based equities. In the U.S., all three major indices we track made new all-time highs, with the DJIA accomplishing the feat on October 26, the S&P and NASDAQ on Friday, October 29.

In other markets, the sudden decline in the Euro and strength in the U.S. Dollar caused Gold and Silver to selloff on Friday after posting multi-week highs one week ago on October 22. Crude Oil made a new multi-year high last Monday, October 25, then paused in a $5.00 range the rest of the week. Bitcoin posted its all-time high on the full moon the prior week, October 20, then gave back nearly 14% on its decline into October 28. Ethereum, on the other hand, soared to a new all-time high of 4460 on Friday, October 29.

Short-Term geocosmics and longer-term thoughts

“The alternative to what is being negotiated is not the original package. it is nothing,” said white house press secretary jen psaki, warning lawmakers not to “let the perfect be the enemy of the historic.” – andrew duehren and natalie andrews, “democrats struggle for unity on spending bill,” wall street journal, october 27, 2021.

One reason the stock market is still rallying in the U.S. is because almost everyone expects that a historic spending bill being worked on by Congress will eventually pass. The fact that the size of the bill being proposed has now been cut in half is a sign that legislatures may actually be making an effort to scrutinize the proposal, target more of the real needs of society, and assig spending that is more efficient and not just “big.” With Jupiter in the humanitarian sign of Aquarius, and soon to enter into the socially charitable and compassionate sign of Pisces on December 28-29, 2021 through May 10, 2022, it seems very likely that a bill of this nature will eventually pass.

It may not be as big as originally projected, but it will still be the biggest spending bill in history. And the fact that those who demanded a bigger spending package are willing to compromise bodes well for the early stages of the Jupiter/Saturn cycle, which historically is most successful when compromises – middle-ground – policies are adopted. Jupiter and Saturn do not function very well under extremist demands, which of course is the nature of Saturn square Uranus, also still in effect through December 24, 2021.

Yet, the measures being negotiated still haven’t been passed, despite many deadlines that have come and gone. New deadlines could meet the same fate, for the next three weeks find several hard aspects involving Uranus. Starting this weekend, both the Sun and Mars will form a fixed T-square with the Saturn/Uranus square through November 17. These aspects suggest a struggle to find common ground, for Uranus is anything but “common ground.” It is more likely to witness sudden new proposals that could take the discussion even further away from consensus. Uranus represents the principle of original thought and inventions, but oftentimes ideas may be viewed as too radical and over-the-top. Under Uranus, ideas can be ahead of their time, but if not handled with sensitivity, it could result in fierce disruptions, even revolt, within the discussions.

In terms of mundane matters, this period can correspond to earthquakes, high winds, and electrical failures, cyberattacks, and terrorist threats, especially as Mars makes its opposition to Uranus on November 17. On the positive side, it can also be a time of great inspiration. But for the most part, it does not favor an easy consensus. In terms of financial market behavior, it usually corresponds to sharp price swings and volatility. Things that were expected suddenly get derailed, and financial markets react strongly.

So, how should one deal with these next three weeks? The first suggestion is to try and be timely and meet deadlines before their due date. The second is to have a backup plan in case of delays or sudden disruptions that interrupt momentum.

With the Sun and Mars in a square aspect to Saturn now through November 17, the longer one waits to complete a project, the more stress that builds, and then there is great pressure to cram something together. With the Sun and Mars in opposition to Uranus, the more new ideas that are added at the last minute, the more likely they are to be rejected. One may also find that someone has come up with new ideas that do not fit with the work others have been doing, and this is not conforming with the assignment as agreed upon. Now everything seems to be falling apart and there is no time to entertain these new ideas effectively. If you are in this kind of a situation, it may be up to you to monitor those you are working with and make sure they stay on message with the objectives that have been established. Someone going off the rails affects everyone who is trying to stay the course. This sounds a lot like what Congress and the White House are going through. It is probably not the best time for the President to take an overseas trip as the demands of the office require his presence to keep everything on track. He probably has no idea what is going on behind the scenes in his absence. It’s going to be a challenge for the President to hold everyone together these next three weeks from a distance (let alone himself). Furthermore, it would not be a surprise to see other matters encountered that are unexpected while on this trip. It just happens that Uranus is transiting President Biden’s natal Mars now, and during this period, he will also have his Mars return. Does this sound like he is prepared for what awaits him?

Good judgement and timing are often a problem under these types of cosmic arrangements. At a time when agreements are sought and compromises are necessary to advance social and economic programs forward for the “common good,” Mars and Uranus seem to usher in mavericks who may be out of touch with the “common good.” They may have a different agenda that has more to do with their “own good.” And that is not good.

Well, it may be good for Gold.