Gold and Hyperinflation part 2
Y. T. Wong
A Gold Cycle of 55.8 years was introduced to readers in my article of 1 January 2004. This is the second and final part, with emphasis on Hyperinflation.
If my readers judge the Hyperinflation forecast strange and incredible, they have only to think that they are reading a science fiction, and the harmless tale I am going to narrate is nothing but the visions I saw in my dreams.
LUNAR CYCLE - A PRECISION TIMER
The Lunar Cycle is the most important timer of economic rhythms. The basic building block is a Regular Cycle of 18.6 years. The Long Cycle is 55.8 years (18.6 x 3), and the Super Cycle is 167.4 years (55.8 x 3). The cycle lengths are based upon astronomical data. The Lunar Cycle is flexible in that we recognize there are scores of other important cycles (mainly irregular short cycles of variable durations) which are powerful enough to alter or reinforce its wave directions.
Cycle deviation (or tolerance) is limited to 2% of the cycle length or 1 year, whichever is the smaller. Celestial spheres including the Earth do not move in circular orbits but in ellipses, thereby creating deviations. Cycle or wave is a loose term for economic rhythms as reflected in commodity and currency prices over extended periods. The Lunar Node itself is neither inflationary nor deflationary. It is merely an efficient carrier to us of subtle influences. A metal wire conducts electricity but the wire itself does not generate it. Knowledge of cycle length alone is superficial - we need to find out the whys and wherefores of a past event on a specific section of the cycle so to be able to anticipate similar future event occurrence. There were several reviews on the cycle I proposed. One investment firm correctly added a few decimal points to the building block of 18.6 years to read 18.6134. For convenience I will continue to use 18.6. The same firm opined that the Mississippi Bubble (1720) before the collapse of Continental currency in 1781 when Gold soared to $19,390 (sic) per ounce should be a part of this same 55.8-year Gold Cycle. I beg to disagree with the firm because year 1720 is 61 years before 1781. There was a deviation of 61-55.8 =5+ years, exceeding greatly the tolerance of 1 year, thus nullifying the assumption that they were on the same cycle. In fact, the Mississippi Bubble was on a Lunacy (Stock Bubble) Cycle. The firm said:
Shares in the Mississippi Company started at around 500 livres per share in January 1719. By December 1719, share prices had reached 10,000 livres, an increase of 19 times within a year. The shares collapsed in 1720 and 1721 (Fell back to 500 livres in September 1721). The Nasdaq tech stocks climbed to dazzling heights in 1999 and 2000 reaching a peak in the first quarter of 2000 and then collapsed. There was a lapse of (2000 - 1720) = 280 years between the two Stock bubbles. 18.6 years x 15 = 279 years. Deviation of 1 year is allowed. The Mississippi Bubble and the Nasdaq Bubble were on the Lunacy Cycle (grossly inflated value), not on the Gold Cycle (true value).
The South Sea Bubble occurred at about the same time. South Sea share prices started at 120 pounds per 100 pound par value in January 1720. Prices reached 950 pounds in July and then collapsed. Should we measure the time from the South Sea crest to Nasdaq crest, the Lunacy Cycle deviation is 2/3 year only. The deviation can be largely eliminated by further application of timers of short durations.
Interestingly, the Tulip Mania (1636) was on the Lunacy Cycle too. It happened a Half Super Cycle of 83.7 years (this will be discussed in "U.S. Experience") before the South Sea Bubble. Tulip bulbs were changing hands in the Amsterdam Stock Exchange at today's price of US$40,000 (average) each bulb. Lunacy Cycle deals with selling things the price of a match for Cleopatra's dowry. The Lunar Node links up the lunatic mass behavior of men as well as wolves (which howl at full moon, la lune).
But I have digressed. Our present study will be confined to Gold Cycle (55.8 years) and Hyperinflation Cycle (167.4 years).
Hyperinflation Cycle deals with Government profligacy, colossal debts and subsequent devaluation (European series) or subsequent debt repudiation (American series). We shall study the Hyperinflation Cycle in great details.
Before getting down to hard facts, may I broadcast to you some melodies.
MUSIC OF THE SPHERES
There is geometry in the humming of the strings. There is music in the spacings of the spheres -Pythagoras.
The heavenly motionsare nothing but a continuous song for several voices, perceived not by the ear but by the intellect, a figured music which sets landmarks in the immeasurable flow of time -Johannes Kepler.
Heard melodies are sweet, but those unheard are sweeter - Ode to a Grecian Urn, John Keats.
I never had a good tutor teaching me the forecasting business. I am no astronomer. Neither am I an astrologer. Ideas were born out of my imaginations, and these may seem unconventional to them. I am a firm believer that there are close correlations between events in heaven and those on earth. For more than two decades, an inquisitive mind has compelled me, working alone, to examine these events in great depths, and I believe my efforts are not completely wasted.
In an open air concert, the musical instruments and their players are in the middle, with audience forming a circle around them. The audience sing and dance to the tunes of music voluntarily [music impels listeners to dance].
Now consider a different setting. A circular Grand Piano (with millions of keys divided into 12 groups) is placed on a football playground with audience standing in the middle [sky with 12 signs of zodiac and the Earth at center]. A dozen versatile players [planets or spheres] are moving around and hitting the keys of the Grand Piano ["humming of the strings"]. Players at different parts of the circle are moving - some are fast, some are slow, and some even go backwards in the process ["music in the spacing of the spheres"]. The players sing too ["continuous song for several voices"]; their songs are melodies or cacophony [inflationary or deflationary influences of planets, and of zodiacal signs]. While moving around, the players meet and separate and make angles with one another producing palpable tensions which are transmitted to the audience [planetary interactions and their impacts on us]. In response to these, the audience cry and sing and dance, like people in primitive society crying and singing and dancing to the Sun, to the Moon, to the Winds, to the Rivers and to the Stars [human responses to cosmic rhythms]. The music is understood by the people ["perceived not by the ear but by the intellect"] who in their turn interact with one another [interpersonal activities]. Therefore, audience Keats eulogized beauty in his immortal verse; King Lear raged against the elements, bidding the winds to blow the earth into the sea, or swell the waves of the sea till they drowned the earth.
Bode's Law gives precise mathematical expression to the musical intervals of the spheres. Electromagnetism obeys the laws of music. Planets play music on their circumsolar orbits, whose sounds (together with electromagnetic waves of the 12 signs) are transmitted to us by resonance.
Celestial pattern is the choreography. We are dancers. We all dance to its "figured music" which sets landmarks in the immeasurable flow of time.
SEA OF LIQUIDITY AND GERMAN HYPERINFLATION
There are 12 signs of zodiac in the sky, each occupying 30 degrees. They are:
ARI - Aries the Ram (0-30 degrees)
God warned Pharaoh through his dreams that Egypt would have 7 years of abundance followed by 7 years of famine (Genesis 41). There are a lot of 7s in the Bible. So have we - Seven Years War, Seven Years World Hyperinflation (2003-2010), and several decades ago a genius discovered that Man has Seven Years Itch.
Uranus revolves around the Sun once every 84.01 years, so it spends 7 years in each zodiacal sign in succession. The Bible's reference of 7 years no doubt referred to Uranus in transit. The last sign listed above is Pisces and is connected with water or liquidity (i.e. ample money supply and excessive bank credits). Since many years are required to create huge liquidity (most important cause for Hyperinflation), we look to far away planets (they move slowly) for hints. When 2 or more far away planets emphasize Pisces at the same time, water-taps are turned on, liquidity in the forms of bank credits and cash will inundate the markets.
There are 6 far away planets. They are Jupiter, Saturn, Uranus, Neptune, Pluto and the Lunar Node (though invisible, the Lunar Node is treated as a planet). Nearby planets are Mercury, Venus, Sun (treated as a planet) and Mars.
We now examine the real cause (hitherto unknown to economists!) of the German Hyperinflation.
In the following table, heliocentric positions (positions viewed from the Sun) of far away planets are taken from Michael Erlewine's "The Sun is Shining, Heliocentric Ephemeris 1653-2050."
Aspects viewed from the
Neptune_0 degree_Saturn = Conjunction,
Aspects viewed from the
Uranus spent 7 years in Pisces (the Sea of Liquidity) from 1919 to 1926. It was the primary cause of the German Hyperinflation.
German inflation rates:
More useful information can be gathered by studying percentage changes from quarter to quarter. These quarterly percentage changes (tabulated below) are copied from German Macroeconomic History 1880-1979 (A. Sommariva and G. Tullio). For correlation, planetary aspects are placed by the side of the changes.
German Hyperinflation + Aspects of far away (slow moving) planets for correlation
Guidelines on analysis
The key to analysis is to examine carefully how the neutral planets or players interact with these forces:
a) Should the neutral players
join Saturn, there is inflation.
Most of us react to the loudest music. Through simultaneous synchronization, Hyperinflation or Depression is created.
Analysis on German Hyperinflation
In 1918Q4-1920Q1, the price index soared because of [Uranus Opposition Saturn] along Pisces-Virgo. The Opposition aspect greatly accentuated the Sea of Liquidity (Pisces - sign), and it compounded with the destructive inflationary forces of Saturn (Saturn - planet). The product was Hyperinflation.
Something unusual happened. Hyperinflation subsided in 1920Q2-1921Q2 (Note 3). The significant deflationary aspect is [Neptune Conjunction Jupiter] in Leo (Note 4).
In 1922 [Saturn Conjunction North Node] in Libra created Hyperinflation (Note 5).
In 1923, the final blow came on [Uranus Opposition North Node] along Pisces-Virgo (Note 6) which reduced the German currency to ashes.
Hyperinflation stopped in November 1923 (Note 7) even though Uranus was still in Pisces for 3 more years (Note 8). Planets formerly lined up with Saturn and Uranus had moved away. The music emanated from Hyperinflationary Pisces and the enticing songs of Saturn were dying. Fled was that music. Things returned to normal.
The principle can be used to explain the current situation (2004 Q1). Despite a flood of new paper money and the market is awash with easy credits (Uranus has been in Pisces for nearly a year), there is to most people no clearly discernable inflation. Some professionals even claim we are in recession!
DOES HISTORY REPEAT?
Let us do some arithmetic:
For long term major events, we study far away planets (which move very slowly). Four (4) out of six (6) far away planets return to approximately the same positions in a Super Cycle of 167.4 years. The Super Cycle therefore punctuates a lot of histories created by the interactions between Jupiter, Uranus, Neptune and the Lunar Node. The products of the planets (Total in years) deviate slightly among themselves in one Super Cycle, so there are variations in timing. Be that as it may, we can still use their rhythms, together with logical reasoning, to foretell historical events.
Using 1923.0 as a starting point, we expect Hyperinflation in Europe 167.4 years before it.
1923.0 German hyperinflation
Uranus stayed in Pisces from 1752 to 1759.
The important event was the Seven Years War 1756-1763 in Europe. It was a war between Austria, France, Russia on the one side, and Britain, Prussia and Hanover on the other side. The main dispute was between Austria and Prussia for supremacy in Germany. By the treaties of Hubertusberg and Paris (1763) British emerged as the leading colonial power and Prussia as a major European force.
The French & Indian War 1754-1763 was the American arena of the Seven Years War. The struggle centered on colonial rivalry between Britain and France. The fighting in effect ended when General Wolf (British) captured Quebec in 1759.
But a steep price accompanied the fruits of total victory. The British Government borrowed heavily from British and Dutch bankers to finance the war, and national debt soared. In 1756-1757 colonial assemblies in Massachusetts refused to support the war by raising taxes. House of Burgesses (first representative government group in the American colonies) preferred a deficit financing method that relied on printing more paper money. Rampant inflation ensued.
History does not repeat. Hyperinflation does.
The universe is a circular Grand Piano, extended to infinity. When a planet acts on one side of it, the keys at the opposite side also vibrate. This is especially true of the Lunar Nodes. Moving half a cycle simply means the North and the South Nodes changing places - The position occupied by the North Node becomes the position of the South Node, and vice versa.
On completing half a Super Cycle, Neptune moves to the opposite side of the circle. So does the North Node. Other far away planets go to and stay in the same places. We therefore reason that a half Super Cycle (167.4 / 2 = 83.7 years) can produce similar events like a full Super Cycle.
With the North Node traveling a half circle, the stage is set in a different region - in America instead of Europe.
The midpoint of Seven Years
War (1755.6) and German Hyperinflation (1923.0) is
An essay posted on 16 January 2004 entitled "Repudiating the National Debt" by Murray N. Rothbard of Ludwig von Mises Institute explains what happened during this period.
Uranus staying in Pisces from 1836 to 1843 was the dominant cause of "massive inflationary boom", and "enormous amount of debts" floated by irresponsible state governments. The result was so serious that many states repudiated their debts.
The environment of this period also hatched Gold Egg No. 2 (Please refer to my first article).
What happened one Super cycle ago (1839.3 - 167.4) =1671.9 when Uranus transited Pisces from 1668 to 1676?
Mayflower carried 102 pilgrim fathers (first English settlers) to America in 1620. One cannot expect any record of Hyperinflation in American soil 50 years after that. We are forced to look elsewhere (major events are echoed in other parts of the world) to get a glimpse of what could have happened in America around 1670. Voilà, the notorious "Stop of the Exchequer" in 1672! It was the most infamous loan default in English history.
Parliamentary forces defeated the Royalist army in 1645. In 1649 Charles I (1625-49) was beheaded, ending the civil war. The English monarchs borrowed heavily to finance their expensive military adventures. After the restoration of the Stuart monarchy, state debt ballooned. Charles II (1660-85) defaulted on the loans in 1672 and bankrupted many lenders in the banking community.
Here is a summary of the American series of Hyperinflation:
1671.9 Stop of the Exchequer
- Debt repudiation 1672.
It is no hyperbole to say the current Hyperinflation is World Hyperinflation. The USD, a fiat money, is widely used as reserves by many countries. Serious accidents in US will produce profound repercussions all the world over. These lender nations are in effect giving away huge sums of money against empty promises of a profligate nation. They are like the foolish man (in the parable) who built his house on the sand. There came a time when the rain fell, and the floods came, and the winds blew and beat upon the house. The house built on the sand fell, and GREAT was the fall of it.
Each iteration of the Hyperinflation Cycle brings in more calamities. The growth of severity is the direct result of gradual wide-spread use of fiat money and geometric progression of bank credit expansions.
Astronomical data (viewed from the Sun):
Aspects viewed from the Sun
(APPENDIX B for computation)
= Opposition, December 2006
Aspects viewed from the
World Hyperinflation + Aspects
of far away (slow moving) planets for correlation
Guidelines on forecast
Forecast on World Hyperinflation
High inflation is evident from end 2005 on [Neptune Opposition Saturn] along Aquarius-Leo (Note 9) which ushers in a sustained period of high commodity prices. It gathers momentum in 2006.
Hyperinflation escalates in 2007. [Uranus Conjunction North Node] in Pisces (Note 10) is followed by [Sat Opposition North Node] along Virgo-Pisces (Note 11).
The gap (absence of inflationary aspects) in 2008 of 9 months (January-September) may mean temporary cessation or deceleration of price increases (See Note 3 for comparison). As the gap is narrow, adjustment if any will be mild.
Hyperinflation rages from October 2008 to October 2009 on root cause [Uranus Opposition Saturn] along Pisces-Virgo (Note 12).
From April 2009, deflationary forces are emitted from [Neptune Conjunction Jupiter] in Aquarius (Note 13), to counteract inflation. Jupiter shows its prowess by lining up with Neptune, but it does not confront the root cause. Interpretation: lack of resolve by US Government in 2009 to tackle Hyperinflation although she intervenes in the financial markets.
By the end of 2009, the US dollar is reduced to ashes, and Gold soars to stratosphere.
BATTLE GALACTICA 2010
But there is an abrupt change in year 2010. Jupiter comes to rescue.
Jupiter's interactions with [Uranus Opposition Saturn] - geocentric positions:
The mass of the earth is 1.
Jupiter is by far the biggest planet in the solar system. Its mass dwarfs the combined masses of all the other planets (the Sun excluded). A battle is being waged in 2010 between Jupiter and Saturn by Opposition (Jupiter fights Saturn which is at the opposite side of the circle).
At the start of year 2010, Jupiter is at Aquarius 26.4 degrees. It moves rapidly to enter Pisces in the third week of January and in the short space of 4 months 23 days it traverses 31.5 degrees to reach (on 23 May) the opposite point of Saturn (Saturn stays at Virgo 27.9 degrees). A battle between Jupiter and Saturn has begun. To commence the combat, Jupiter has traveled at nearly 3 times its normal speed to reach the battleground. Normal speed is to travel 30 degrees in 12 months. This indicates the US Government is acting expeditiously and decisively to tackle the USD disaster. (Comparison: irresolution in 2009).
For 4 months (May-August), they are on opposite positions in a tug of war contest, consuming each other's energy. During this period, Uranus joins Jupiter in the first degrees of Aries (see table above). With the help of Uranus, Jupiter vanquishes Saturn.
Jupiter (USD) the Almighty giant planet emerges victorious. The defeat of Saturn (Satan or anti-USD) has been vividly recorded by John Milton in Paradise Lost Book I:
With the downfall or demise of anti-USD, does it foretell the rebirth of USD?
Yes. A new US dollar.
The gold dollar.
Y. T. Wong
GERMAN HYPERINFLATION - Computation of heliocentric planetary aspects
WORLD HYPERINFLATION - Computation of heliocentric planetary aspects