The Reset
The upcoming Saturn-Uranus square (which will technically be the first and last time in 2022), begins in August. It gets cozy in September and then peaks the first 13 days of October. Interestingly, the exact square begins on October 2, 2022, one day after the Communist Party National Congress in China.
I was reading last month about the National Congress being an especially significant event for the future of European and Chinese relations, as their relationship is not exactly healthy at the moment.
I’ve been diving into economist Martin A. Armstrong’s catalogue of economic predictions. His model for August and September 2022 lines up with the Saturn-Uranus square.
What I’ve gleaned from Armstrong so far (since I’ve spent so little time studying currencies) is how the banking debt cycle works and how it’s been working for the U.S. for the past 100+ years.
In 1896, J.P. Morgan took out a $100,000,000 loan in gold to bail out the U.S. Treasury. This and the creation of the Federal Reserve is what helped the U.S. go from bankruptcy to being the richest country in the world after WW1 and WW2.
In 1933, FDR (in order to stabilize the banks after the stock market crash) had changed the convertibility of paper money, which had until then been backed by gold, so that U.S. citizens could no longer stockpile it. Gold would become a privatized national reserve to be used only for international transactions.
After WWII, the U.S. took on the enormous task as economic superpower to rebuild the war-torn countries of the world. Even though the U.S. was the wealthiest nation in the world and owned 76% of the world’s gold reserves, how could they swing that financially without going bankrupt?
In July of 1944, about a year before the war officially ended, delegates from 44 nations met in Bretton Woods, New Hampshire to draft a new international monetary policy. The U.S. dollar would serve as reserve currency and would have an exchange rate of $35 to one ounce of gold. Other nations were expected to maintain their currency within a 1% parity. The U.S. Federal Reserve would maintain reserves of gold equal to 40% of the U.S. dollar.
This Bretton Woods event happened to take place from July 1-July 22, 1944 during an exact (then 2-degree separating) Saturn-Neptune square. Not an ideal time to be making financial decisions. It would be like signing important, legally binding documents when you’re under the influence of alcohol or drugs. If Saturn is structure, Neptune is fantasy.
The Russian Soviets attended Bretton Woods but refused to sign the agreement, seeing the writing on the wall that this was just a veiled boon for Wall Street. Naturally this fostered U.S. antagonism towards Russia that continues to this day. The Russians were right. This was an orchestrated maneuver by the wealthiest nation of the world to get obscenely wealthy and allow other nations to skim the fat.
27 years later, in August of 1971, Nixon removed the U.S. from the gold standard, collapsing the Bretton Woods agreement. Prior to this, it was illegal to borrow on government debt, but in post-Bretton Wood terms, nations could borrow on debt and trade in futures. So now the debt that governments issue is essentially currency that pays interest.
European countries have been borrowing on debt since WWII with no intention of ever paying it back. As of 2019, U.S. banks won’t accept European debt as collateral so now they have to default, which will screw European citizens. Italy for example has kept interest rates in the negative since 2014, which essentially wiped out all pension funds.
Since 70-90% of pension funds have to be backed by government debt by law, Europeans are in a terrible position. Add to the tension the sanctions with Russia, which is hurting Europe way more than its hurting Russia. U.S. Social Security is also backed by government debt but I think it’s actually 100%.
With the U.S. dollar at a 20 year high (and steadily increasing in value), what this means for emerging markets that issue debt in dollars is a total market collapse, as we’ve already seen in Sri Lanka and Lebanon. The debt now is double (or more) the amount it was when it was originally borrowed, regardless of borrowing at low interest rates.
With the U.S. still the reserve currency, if war breaks out in Europe, that war capital ends up coming back to the U.S. This is why the U.S. government was pushing for war and why war will now be economically unavoidable for Europe.
Looking at the next few years, one thing that pops out is the Saturn-Neptune conjunction in Aries beginning in August 2025 (though both planets will be retrograde). The U.S. Uranus Return doesn’t happen until 2027-2028, which could likely mean the escalation of war, but that nagging Saturn-Neptune alignment is probably when something eventful will be set in motion.
Since crashing the entire financial system and introducing a new currency is allegedly the financial goblins’ goal, a Saturn-Neptune conjunction in the U.S. 4th house of domesticity (2025-2026) is not a time for great new beginnings. It is no longer, and it never will be, 1944 again. This will be a time after years of civil unrest has broken out because people are unable to pay bills and feed their children.