BILL HANSEN is innovative in the field of cycle research and prognostication. His unique style of chart interpretation, a blend of ancient knowledge and modern statistical methods, results in highly accurate and practical information that you can use. Bill has contributed four valuable techniques to the field of astrology: a simplified method of natal and transit interpretation; the Relocation Plotter; the Diurnal Planet for a Year Progression technique; and the Dice Oracle. Meet Astro Bill

FINANCIAL FORECAST

The National Debt: The stock market forecast for 2008 was right on the "lost" money. The 2008 recession is the worst economic downturn since the Great Depression entitling it to be called the Great Recession. This credit/mortgage crisis has triggered a worldwide depression. As the financial crisis has spread, the government's commitments have grown into the trillions of dollars. The economic stimulus package and the Obama administrations drive to expand the scope of government programs have created the greatest and fastest growing debt in our nation’s history.

The trillions of borrowed money will eventually have to be paid for through higher taxes. Past large tax hikes – 1982, 1990, 1993 - came at times of concern over high budget deficits. The deficits hurt in other ways too. If the government has less money to spend, entitlements will be cut. Interest rates can go higher, hurting stock prices and damaging the value of the dollar. A declining dollar raises the cost of imports and reduces the American standard of living. With vast sums tied to treasuries, there are fewer dollars left for private-sector investment, productivity, and innovation. Foreign countries own half the debt, and foreign lenders are purchasing 70-80% of new debt. This infusion of foreign investment in treasuries provides us with capital and attractive interest rates but it is not prudent to rely on this source of revenue over time. China, a major investor in our debt, has already signaled its willingness to invest elsewhere. So the current debt level is unsustainable and is likely to be the cause of the next severe recession.

THE ECONOMY AND THE STOCK MARKET

The high point of the market and the economy was October 12, 2007. The following low appears to have been reached in March 2009. The market has been gaining strength in 2010 although the economy is still very weak due to a high jobless rate, sluggish lending, a depressed housing market, and a shaky European recovery due to their high debt ratios. The possibility of a “double-dip” recession also exists.

Forecasting the economy involves 7 categories of influence.

(1) {-} Sunspots indicate the highest bull markets and the lowest bear ones. 2008 was a year of sunspot minimum, so a lowest bear market was indicated - hence, the Great Recession. The most telling factor concerning sunspots is when they first move above an average of 50 per month. Since 1871 this predictor has marked the PEAK of the market - with a sudden crash occurring soon thereafter. The last time sunspots rose above 50 was March 1998 and the market reached a monthly average high in May then abruptly fell to a bottom of 7713 in September 1998. It then rose to a peak in December 1999 with the sunspot maximum of 2000. A similar situation is likely this time. The National Oceanic Atmospheric Administration estimates a projected rise above 50 in August 2010. The market will likely hit a high point near this time and, then, experience a steep sell-off. It could feel like a “double-dip” recession. The NOAA projects the next sunspot maximum in 2012. This will be the approximate time of the next super market high.

(2) The planetary aspects: {-} The Saturn-Uranus zodiacal aspect of late 2008-2010 warns of a financial crisis. The Jupiter-Neptune cycle is primarily an inflation indicator but 4 out of the last 5 conjunctions led to a financial crisis. The last conjunction took place in 2009 and correctly indicated the severe recession. {+} Jupiter-Uranus indicates a low in 2009 but a rise in 2010, followed by crisis in 2013-2015. {-} Jupiter-Neptune correctly pointed to a crisis in 2009 and a lower market in 2010. {-/+} Jupiter-Pluto also points down until mid-2010. {+/-} Jupiter-Saturn indicates an up market in the 1st quarter of 2010 and, then, the beginning of a protracted downward movement.

(3) Saturn-Neptune is primarily a deflation cycle reflecting modest deflation in 2009 with major deflation in 2015-2016!

(4) {+} When there are an above average number of eclipses in one year (six or seven) the market tends to be disrupted. There were 6 eclipses in 2009 for instance, and only 4 eclipses in 2010.

(5) {-} Major market indicators are Mars-Jupiter-Saturn aspects. They correctly indicated a correction near August and December 2007. The next Mars-Jupiter-Saturn aspect was in January 2009; again correctly predicting the Great Recession. Mars-Jupiter-Saturn will once again be close in aspect with one another in August 2010.

(6) {+} Dry weather is also an indication of a bear market. 2007 was the third year of drier weather (see Data link). 2007, in fact, turned out to be drier than average - a dire warning of the recession that manifested. The good news is that precipitation was UP in 2008 and 2009. This points to an economic recovery in 2010 or 2011.

(7) Lastly, there are cycles in the U.S. chart that have repeatedly correlated with recessions and panics. As correctly predicted last year, the current recession (2008-) is likely to be severe enough to trigger a world depression. The greatest economic downturns tend to be when sunspots are low, during dry weather trends, and when certain slow cycles (21-year, 41-year, and 62-year) are formed in the U.S. natal chart. All of these conditions were met in 2008. In addition, Pluto was in opposition to the U.S. Venus (money) three times in 2009. This could indicate good economic times but Uranus crossed the Descendent twice, the second time in September just as Saturn (financial loss and restriction) crossed the Ascendant. These are clear astrological signs that the recession would continue through 2009 and into 2010. 2010 is a wild card since Uranus crosses the Descendent for the third time in February. This is a destabilizing cycle due to the uncertainties and fragilities of trade and politics. It also signals that countries will rebel, go their own way, and that armed conflicts will rage. Signs are more favorable for a rally in May when Jupiter is in conjunction with the Descendent for the first of three crossings. From May to September 2010 the economy will seek higher ground. Then another setback is likely in October when retrograde Jupiter crosses the Descendant followed by the first of three Saturn-return cycles (first peak Dec. 2010). Fortunately, Jupiter also crosses the Descendant a third time in December and Pluto is opposite the U.S. Jupiter (money) in January 2011. These cycles together indicate rapid financial growth.

In the final analysis, 2010 is a fitful year of robust gains and sharp losses. The overall gains in 2010 are not likely to be too great due to early and late mid-year setbacks. The year will end, however, on a very positive note. The near future is bright for the stock market and the economy as sunspots increase to the next maximum. The period near 2015 is, however, particularly troubling. A thorough analysis of this period is necessary as a debt collapse is then possible.

OIL AND THE ECONOMY

History is not immutable but one factor is noticeable again and again: the rise and fall of great nations hinges primarily on their economic strength. Rome, Imperial China, Venice, France, the Netherlands, Portugal, and the United Kingdom all had their heyday, and their international decline followed their economic decline. The spectacular economic growth in the United States was fueled by cheap domestic oil. But now that the "age of oil" is nearing an end alternative sources of energy are needed.

As American demand for oil rose, domestic resources dwindled. The need to import oil eventually became necessary. The importation of oil from other nations has created the greatest transfer of wealth in history. The U.S. consumes more than 20 million barrels of oil a day, about 12 million of which are imported. Based on prices from the first half of 2008, the U.S. transferred about $1.3 billion to the oil-producing countries every day - $475 billion a year. The other major consumers of oil - China, the EU, India, and Japan - are likewise sending even greater portions of their wealth to the producing countries. The wealth being accumulated in oil rich countries is making them economically and politically stronger; meanwhile, the massive budget deficits are making America a deep debtor nation.

Some of these producing nations have very different viewpoints and international agendas than our democratic friends like Canada, Mexico, Japan, and Europe. Russia, for instance, has taken a tough stance toward our defensive missile plans in Europe. Oil-rich nations like Iran and Venezuela will become more rebellious. More money will be available to terrorists and nations bent on destabilizing the Middle East, Africa, and perhaps Latin America.

Our alleged friend Saudi Arabia has helped to keep oil at affordable levels but this has mostly been in their best interest. They initiated the 1972 oil boycott remember, and have repeatedly restricted output to drive prices higher. Elements within the Saudi power structure continue to allow billions of dollars to go toward building extremist madrasahs and funding terrorist organizations, including al Qaeda. Although the world economic crisis has dramatically driven down the demand for oil, oil supply disruptions due to geopolitical events – like the Somalia pirates, Iran’s refusal to stop its nuclear program, instability in Iraq, security problems in oil rich Nigeria, and Russia's dispute with some of her neighbors - all point to higher fuel prices once the world recession ends.

The volatile Middle East is home to two-thirds of the world's oil reserves. We will see in the years ahead major plays by oil rich nations to influence the world scene. Major wars and widespread terror and violence will also continue. A confrontation with Iran seems inevitable. This alone will cause a huge spike in the price of oil if not a temporary drastic shortage. It is imperative, then, that America take the opportunity presented by the economic downturn and turn to alternative fuels. Besides wind, solar, and bio-fuels, thermal forces can be harnessed, the ocean currents can provide electricity, and hydroelectric plants can be built while other smaller ones no longer in commission can be retrofitted and put back into operation. Coal is another valuable resource that America has in abundance (a 200-year supply). We can and should develop clean coal-burning facilities; old facilities can be retrofitted.

There are three scenarios for oil:

1) Prices fall below $70 per barrel. In this case, a global recession occurs, speculators liquidate en masse, developing-world demand falls sharply, the rate of decline in existing fields lessens and new supplies are brought on much sooner than planned, and biofuel growth continues to gain ground despite the environmental tolls.

2) Prices stay in the $100-$140 per barrel range. In this case, demand remains low in the developed world (U.S. primarily) while emerging market demand remains solid with China and India imports coming back to normal. Disruption of supplies is limited.

3) Prices go toward $200 per barrel. This doomsday scenario can be caused by any of several factors, including destabilization or war in the Middle East, more severe supply disruptions in Nigeria or in the oil distribution networks due to terrorists or pirates, or the weather could cause massive disruptions. In this scenario, demand in the developing world would remain robust while developed nations would suffer financially. The 2008-2009 global recession has triggered scenario #1.

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Article written by Bill Hansen 2011. All rights reserved.