The day in history that shocked the financial world was on August 15th, 1971. This was also referred as “Nixon shock.” Former president Richard Nixon, closed the gold window. The United States made it impossible for other nations to peg their currency to the gold standard, which was the underlying principle behind the Bretton Woods system. As a direct result of the economic policies imposed by the United States at the time, the gold standard was all but abandoned and the world’s major currencies began to float. The Nixon administration effectively “defaulted” on the United States’ long-standing debt obligations ending once and for all the Bretton Woods System.
In other words, August 15th, 1971 is the official day the U.S. dollar was no longer pegged to Gold and was now a free floating fiat based currency backed by nothing but the full faith and credit of the United States and its printing press.
Here is another interesting fact I came across during my research. According to a study of 775 fiat currencies by DollarDaze.org, “there is no historical precedence for a fiat currency that has succeeded in holding its value. Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.”
“The average life expectancy for a fiat currency is 27 years, with the shortest life span being one month. Founded in 1694, the British pound Sterling is the oldest fiat currency in existence. At a ripe old age of 317 years it must be considered a highly successful fiat currency. However, success is relative. The British pound was defined as 12 ounces of silver, so it’s worth less than 1/200 or 0.5% of its original value. In other words, the most successful long standing currency in existence has lost 99.5% of its value. Given the undeniable track record of currencies, it is clear that on a long enough timeline the survival rate of all fiat currencies drops to zero!” In fact, since the Federal Reserve act of 1913, the U.S. dollar has lost over 96% of its value.
After signing the Federal Reserve act in 1913, former president Woodrow Wilson a few years later wrote: “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson”
Astrologically, the U.S. dollar is now at the most critical point ever in its life cycle! I consider the most important astrological chart for the U.S. dollar and our financial security is when it officially became a “fiat currency” as of August 15th, 1971. Based on this chart, the U.S. dollar is in the process of going through its “mid-life crisis!” This occurs roughly around the age of 42. Maybe you remember yours, if you are old enough. It’s not a piece of cake! The fiat U.S. dollar officially turned 41 years old this year in 2012.
The “mid-life crisis” in astrology is one of the most significant life cycles in a person’s life. This life cycle corresponds to the cycle of Uranus. Uranus has a cycle of 84 years to complete one revolution. One half of the Uranus cycle is 42 years. This is when Uranus forms an “opposition” of 180 degrees to its natal position.
But wait, there’s more. Uranus is presently in a longer term cycle where it is “square” (90 degrees) Pluto in Capricorn through the year 2015. So as Uranus opposes Uranus in the chart for the U.S. dollar, the transit of Pluto will also square Uranus at the same time. This is referred to as a “T-square” configuration in astrology. This cardinal T-square, involving the cardinal signs of Aries, Libra, and Capricorn, is one of the most event producing planetary configurations in astrology!
In the chart for August 15th, 1971, the Sun is at 22 degrees Leo and Venus is at almost 19 degrees of Leo. The planet Uranus is at almost 11 degrees of Libra. During the last few years, the Uranus/Pluto transit has already been forming hard and stressful aspects of 135 degrees to the Sun, Venus conjunction in the U.S. dollar chart. We all have witnessed the effects of this cycle and the higher food and commodity prices as “Helicopter Ben”, our Fed chairman Ben Bernanke, cranks up the printing press just to keep the banks and economy afloat. The Fed’s recent announcement is a policy of “unlimited money printing” until the economy turns around. In other words, QE, what they refer to as “quantitative easing” until infinity!
From my astrological perspective, as far as the U.S. dollar is concerned, the worst is yet to come. When Uranus and Pluto both cross 11 degrees of Aries and 11 degrees of Capricorn, both of these planets will be forming a “T-square” to Uranus in the U.S. dollar chart at 11 degrees of Libra. This Uranus/Pluto cycle will begin in January of 2013 and last throughout the year 2014. Saturn’s transit through the sign of Scorpio will also be forming a square to the U.S. Dollar’s Sun/Venus conjunction at 19 – 22 degrees of Leo during this same exact time frame. The cycle of Saturn points to the very same theme. This is a period when I am forecasting we will see the next big devaluation of the U.S. dollar and the beginning of inflation like we may have never seen before in history.
I’ve just written at length from an astrological perspective about the debasement of the dollar. I also like to back up the astrological predictions for the USD with some very interesting data that comes from the traditional world of science and mathematics. I would say “economics” but there are very few economist who seem to live in any sort of fiscal reality. If you follow economists and the financial mainstream-media you are likely to lose everything because they simply don’t tell the truth.
While it’s easy for me to read the stars, it is always nice to be able to confirm things with traditional mathematics when it can be done. I know someone very well who writes a blog about gold and owns a wholesale gold and silver company that delivers physical metals to investors. His perspective is very much appreciated because while others speculate, he uses hard data to crunch real output numbers and his predictions have also been dead on. I’ve learned a lot from reading his analysis.
Gold is an interesting asset because many would argue it is real money in a world of printed fiat paper backed by nothing more than government promises and corporate greed. Gold rises as the USD becomes debased for obvious reasons therefore research into what gold is following and where it’s going can offer confirmation as to USD’s direction.
I have been a proponent of owning gold for some time. In fact, I recently found an old receipt of mine in one of my drawers when I first bought some gold coins for $333 an ounce in 2002. I’ve been believing in it since then and when the bull market began based on the Saturn/Pluto cycle. This is when Saturn was forming an opposition to Pluto. Based on the Saturn/Pluto cycle, the bull run in Gold and commodities can continue to run until the year 2019 – 2020 when Saturn completes a conjunction to Pluto and the cycle starts all over again.
So let’s have a look at the two things that gold follows and why and where they are going. Gold follows the accumulation of US Treasury Debt and it follows the balance-sheet expansion by The Federal Reserve (QE).
The two links will provide insight into why and how this plays out. Do you believe in math, astrology, or magic? Because the astrology and the math say the same thing, while the magicians are trying to convince you of an entirely different illusion!
Stay tuned for more “Astro-News” on November 6th when Mercury turns retrograde and a total solar eclipse occurs on November 13th.
© T.S. Phillips, A.A.S., Inc. 2012