Gold and Hyperinflation

Y. T. Wong
Hong Kong, 1 January 2004

INTRODUCTION

This article is written to pinpoint the timing of the imminent hyperinflation. Statements are backed up with facts. Inferences are drawn from repeated past occurrences supported with reasons. Readers should not swallow my findings; they are encouraged to verify the facts presented. The findings are the results of my private research work over 25 years.

There may be many people like me trying to unlock the mysteries of the Universe, but I am alone in this piece of research work.

THE GOOSE THAT LAYS GOLD EGGS

Please look at some figures:

Year 1781 was hyperinflationary. The American Revolutionary War rendered the continental currency valueless. On 31 May 1781, Gold price soared to $19,390 an ounce. The goose had laid her first Gold egg!

The figure 1781.40 (2nd quarter in year 1781) is a starting reference point for computing subsequent events. The height of a crisis may deviate from the reference point by several months because a crisis spans months or even years.

THE GOLD EGGS

Gold egg No. 2 [1837 Q1]

Here are some important events in the history of Gold:

After 55.80 years, because of financial panic and huge demand for Gold, the U.S. government suspended free Gold conversion. The 2nd Gold egg was laid in May 1837.

Gold egg No. 3 [1893 Q1]

55.80 years later, in 1893, another financial panic occurred. Gold was hoarded. In October, the discount rate soared to 36%.

John Dennis Brown's 101 Years on Wall Street made the following comments:

The last great mercantile and credit crisis of the nineteenth century smashed the market in
1893. During the summer, the casualty list included a fast-swelling list of banks, insurance companies, and brokers. Cash currency commanded a premium of 5% over certified checks.

The nation, at the same time, suffered from a growing currency crisis originating in the
Sherman Silver Purchase Act of 1890 and driven by a growing foreign distrust of dollar holdings. Heavy selling of securities encouraged the efflux of Gold and the Treasury's bullion holdings fell dramatically.

Gold egg No. 4 [1948 Q4]

This egg was laid immediately after World War II. The following events make interesting reading:

Hungary 1946
The inflation rate was 19,800% per month.
In August 1946, 828 octillion (1 followed by 27 zeroes) depreciated pengos equaled the value of 1 pre-war pengo.

Japan 1947
Fishermen & farmers in 1947 used scales to weigh currency and change.

China 1946-1948
The Chinese National currency became valueless (when the National Party was expelled to Taiwan).

Gold egg No. 5

The reference point of the coming crisis is the 3rd quarter in 2004! The crisis peak may deviate from the reference point by several months. In a separate analysis (as I will explain later), I have arrived at the conclusion that the most turbulent months will be in year 2005. During this period, Gold and Silver prices will soar. So will commodities.

Before moving to the next section, let me recapitulate:

THE UNDERLYING CAUSE

I read a novel City Boundary by Qian Zhong-shu. In the preface, Mr. Qian told a story. An English woman read the English version and was keenly interested. She telephoned Qian and asked whether the chief character in the novel was Qian himself. Qian replied bluntly, "If you like the egg, eat it. Why are you bothering me with the hen?"

Dear readers, if you like the gold egg, pick it up and keep it in a safe place. As to the goose... er... Since you want to know why she lays a Gold egg every 55.80 years, I am telling you the underlying cause now.

People in weather forecasting business know well that there is a lunar cycle of 18.60 years. The knowledge is an indispensable tool for predicting water tides. Three times 18.60 years = 55.80 years. It so happened that in every 3rd occurrence of this 18.60-year lunar cycle, momentous events had occurred to bring into prominence Gold's role in the financial markets.

The following is an explanation for the formation of the 18.60-year lunar cycle:

The Earth revolves around the Sun. The plane of the Earth's orbit is called the Ecliptic. The Moon's orbit (around the Earth) is inclined 5 degrees 8 minutes to the Ecliptic. The point where the Moon crosses the Ecliptic from south to north is called the North Node, and where the Moon crosses the Ecliptic from north to south is called the South Node. The two nodes (180 degrees apart) move in clockwise direction and complete one circle of 360 degrees in 18.60 years.

For nodal and planetary positions, please refer to The American Ephemeris by Neil F. Michelsen. (Amazon)

THE 18.60-YEAR CYCLE AND EFFECTS ON GOLD AND CURRENCY

What had happened on the shorter cycle of 18.60 years?

The effects, though regional only, were the same. Currency collapsed, and Gold was in great demand, as evidenced below:

FINANCIAL PANIC

Knowing that hyperinflation is approaching, we have no difficulty to get into a long Gold &/or Silver position. The important decision is when to sell so to maximize profits at or close to the peak. In a spiraling inflationary period, fortunes can be made or lost within a short time. It is crucial to know beforehand when to liquidate the long positions.

I need to state a theory discovered by me. It has not been disclosed to anybody until now.

Theory

"When lunar node is posited alongside Jupiter for a long time, there is hyperinflation."

Notes:

Lunar node = North Node or South Node
Alongside Jupiter = Close to Jupiter, not more than 14 degrees apart.
Long time = More than 6 months.

To illustrate the application of this theory, let us study the last soaring Gold market in 1979-1980.

The positions of North Node and Jupiter are taken from The American Ephemeris.

When North Node was on the positive side of Jupiter, it lasted only 2 months, so the formation had no application. When North Node was on the negative side of Jupiter, they stayed within orb for more than 7 months. Accordingly the period from early November 1979 through end June 1980 was extremely bullish for Gold.

Spot Gold was quoted at US$370 an ounce in early November 1979. It soared to US$875 on 21 January 1980. There was a sharp downward reaction in February and March 1980, touching a low of US$475. Gold then climbed all the way up during the rest of the bullish phase. Its price overshot past the end of June 1980, reaching US$690 in early July.

The period from early November 1979 through end June 1980 was only a part (the most bullish part) of the financial panic. The bullish Gold trend started much earlier.

There is an equally bullish phase for Gold in the near future.

South Node is on the opposite side of North Node (the lunar nodes are always 180 degrees apart). Interactions between South Node and Jupiter are the same as interactions between North Node and Jupiter. Bear in mind that Libra is opposite to Aries.

When South Node is in the positive side of Jupiter, they stay within orb for about 8 months. Therefore the period from end December 2004 through early August 2005 is extremely bullish for Gold. South Node then swings to the negative side of Jupiter, and this lasts only 2 months. The latter formation has no application. I expect termination of the bullish trend from the last week of August 2005.

The bullish period from end December 2004 through early August 2005 is only a part (the most bullish part) of the financial panic. The bullish trend for Gold will start much earlier.

A FORECAST FOR GOLD AND SILVER

It is not the purpose of this article to make any guesses. However, from the facts presented, I believe that during the impending hyperinflation, Gold prices will explode, exceeding significantly the peak achieved in January 1980 (US$875 an ounce) because:

(a) The astronomical phenomena for 2004-2005 are at least as bullish as those for 1979-1980.

(b) In the past occasion, Gold started with a low of US$100 per ounce in August 1976. The current occasion had a low of US$252 in August 1999. It is not unreasonable to expect a much higher peak for the present bullish market.

The next problem is to consider whether or not to buy Silver as well.

The Gold/Silver ratio was 16 for many years before 1870. The ratio rose to 90 in 1930s (Great Depression). From 1960 to 1980 (inflationary periods), it fluctuated between 20 and 40. The latest low was 20 in end 1979-early 1980. The ratio rose to 100 in 1991 Q1. It now stands at 70.

It is clear that during inflationary periods, Gold/Silver ratios fall. Since the coming great event is hyperinflation, I expect the ratio to fall to 20-40 (like years 1960 to 1980) which is about half of the current ratio of 70. This means that for 100% rise in Gold (Gold price is doubled), Silver will rise 300% (Silver price is quadrupled). On this reasoning, I would advise buying Silver also.

CONCLUSION

Here are the main points:

1. Hyperinflation is imminent.

2. Past analyses indicate the following will happen:

Gold will soar.
U.S. dollars will collapse.
Interest rates will climb sharply.

3. The reference point for the hyperinflation is the 3rd quarter of 2004. By planetary correlations, the most bullish phase has been located. It is from end December 2004 through early August 2005. However, Gold will rise significantly before this period.

4. Gold price will greatly surpass the high reached in year 1980.

5. It is advisable to invest in Silver also because Silver rises more rapidly than Gold.

6. Hyperinflationary forces will disintegrate by the end of August 2005.

Good luck!

Y. T. Wong
Contact
Hong Kong, 1 January 2004

Gold and Hyperinflation part 2

Y. T. Wong
Hong Kong, 4 March, 2004

INTRODUCTION

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:

"For some reason the author never mentioned John Law and the Mississippi Bubble. Law was the son of a Scottish goldsmith/money lender, and when France was suffering from a severe shortage of Gold in the early 1700s, he convinced the Regent that "My secret is to make gold out of paper." In 1716 Law established a private bank which issued bank notes, and which eventually underwrote the entire French national debt, backing it with shares of the Mississippi Company. This company supposedly had the rights to the vast hoards of Silver and Gold (along with other riches) in The Louisiana Territory. The French money supply soared, inflation was rampant and on February 27, 1720 the government essentially outlawed private ownership of Gold. On November 27, 1720 Law's bank shut its doors for the last time, as the entire paper money scheme had by then totally unraveled."

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)
TAU - Taurus the Bull (30-60 degrees)
GEM - Gemini the Twins (60-90 degrees)
CAN - Cancer the Crab (90-120 degrees)
LEO - Leo the Lion (120-150 degrees)
VIR - Virgo the Virgin (150-180 degrees) -- Opposite to Pisces
LIB - Libra the Scales (180-210 degrees)
SCO - Scorpio the Scorpion (210-240 degrees)
SAG - Sagittarius the Archer (240-270 degrees)
CAP - Capricorn the Goat (270-300 degrees)
AQU - Aquarius the Water-carrier (300-330 degrees)
PIS - Pisces the Fishes (330-360 degrees) -- Opposite to Virgo

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 Sun
Please refer to APPENDIX A for computation.

Neptune_0 degree_Saturn = Conjunction, August 1917
Uranus_180 degrees_Saturn = Opposition, June 1919
Neptune _0 degree_Jupiter = Conjunction, December 1919
Uranus_180 degrees_Jupiter = Opposition, October 1920

Aspects viewed from the Earth
We attach greater importance to geocentric aspects. Here are the equivalents, with the addition of Lunar Node, taken from Neil F. Michelsen's The American Ephemeris.

Inflationary geocentric aspects
01/1917 - 06/1918 Neptune Conjunction Saturn
09/1918 - 09/1919 Uranus Opposition Saturn
03/1920 - 07/1920 Uranus Opposition Saturn
01/1922 - 08/1922 Saturn Conjunction North Node
03/1923 - 11/1923 Uranus Opposition North Node

Deflationary geocentric aspects
09/1919 - 06/1920 Neptune Conjunction Jupiter
08/1920 - 09/1920 Uranus Opposition Jupiter

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
There are inflationary as well as deflationary forces at work all the time. Yin and Yang always go hand in hand. Sign Pisces is inflationary. Planet Saturn is inflationary. Jupiter is deflationary. North Node and Uranus are neutral.

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.
b) Should the neutral players join Jupiter, there is deflation.
c) Planetary influence is more powerful than sign influence.
d) In conflicts among planets, Jupiter wins.

Most of us react to the loudest music. Through simultaneous synchronization, Hyperinflation or Depression is created.

Analysis on German Hyperinflation
Before Uranus entered Pisces in 1919, German inflation was relatively mild though significant. In the 4.1/2 years from July 1914 to January 1919, wholesale price index rose from 1.0 to 2.6. The relevant aspect was long term (Note 1) [Neptune Conjunction Saturn] (Note 2) in LEO.

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.

NOTES 1-8

Note 1
Only long term aspects are considered. Short term aspects though powerful are beyond the scope.

Note 2
Two separate influences are discussed:
1) Sign influence e.g. Pisces is inflationary.
2) Planetary influence e.g. Saturn is inflationary, Jupiter is deflationary.
Irrespective of signs, both [Neptune Conjunction Saturn] and [Neptune Opposition Saturn] are inflationary.

Note 3
From 1920Q2 to 1921Q2 wholesale prices fell (in middle of Hyperinflation) because of absence of inflationary aspects of Saturn &/or Pisces sign influence for more than a year, even though Uranus was staying in the Sea of Liquidity. Lack of aspects meant the music extolling Hyperinflation subsided or paused or stopped. The attention of audience was directed to elsewhere and they now rested or danced to different tunes. This is the "void aspect principle" (term coined by me).

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!

Note 4
[Neptune Conjunction Jupiter] in Leo September 1919 - June 1920 is deflationary. Part of this aspect overlapped with inflationary [Uranus Opposition Saturn], and deflationary forces took over only from 1920 Q2.

Note 5
The North Node carried Saturn's inflationary planetary influence to earth. [Saturn Conjunction North Node] normally lasts 3 months and is moderately bullish. But in 1922 the conjunction aspect of 8 months was unusually long, so inflationary pressures increased exponentially.

Note 6
The North Node and Uranus are neutral (neither inflationary nor deflationary). Their Opposition alignment in 1923 released the full impact of Pisces sign Hyperinflationary forces.

Note 7
The Rentenmark, a new currency backed up by tangible assets, was created at the rate of 1 for 1 trillion old paper marks. In October 1924 the Rentenmark was replaced by the Reichsmark which had 30% gold backing.

Note 8
Hyperinflation no longer existed in 1924-1926 though Uranus stayed in Pisces (Sea of Liquidity) in those years. There was a vast supply of new money of 2.4 billion trillion in terms of the old mark. Despite no decrease of money supply compared with 1923, deflation ended. This strange phenomenon ("void aspect principle") has been explained in Note 3. Uranus staying in Pisces must be emphasized by another far away planet to be truly inflationary. Without concerted sign accentuation, inflation is not apparent.

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
-167.4 One Super Cycle
1755.6 Seven Years War and The French & Indian War.

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.

U.S. EXPERIENCE

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
(1755.6 + 1923.0) /2 = 1839.3

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.

"The first wave of repudiation of public debt came during the 1840's, after the panics of 1837 and 1839. Those panics were the consequence of a massive inflationary boom fuelled by the Whig-run Second Bank of the United States. Riding the wave of inflationary credit, numerous state governments, largely those run by the Whigs, floated an enormous amount of debt, most of which went into wasteful public works, and into the creation of inflationary banks. Outstanding public debt by state government rose from $26 million to $170 million during the decade of the 1830's."

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.
+167.4
1839.3 Debt repudiation 1842.
+167.4
2006.7 World Hyperinflation.

WORLD HYPERINFLATION

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)

Neptune_180 degrees_Saturn = Opposition, December 2006
Uranus_180 degrees_ Saturn = Opposition, September 2009
Neptune_0 degrees_Jupiter = Conjunction, September 2009
Uranus_0 degrees_Jupiter = Conjunction, September 2010

Aspects viewed from the Earth
Here are the geocentric equivalents, with the addition of Lunar Node.

Inflationary geocentric aspects
10/2005 - 08/2007 Neptune Opposition Saturn
01/2007 - 05/2007 Uranus Conjunction North Node
09/2007 - 12/2007 Saturn Opposition North Node
10/2008 - 10/2009 Uranus Opposition Saturn
03/2010 - 09/2010 Uranus Opposition Saturn (Compromised by Jupiter).

Deflationary geocentric aspects
04/2009 - 12/2009 Neptune Conjunction Jupiter
05/2010 - 01/2011 Uranus Conjunction Jupiter

World Hyperinflation + Aspects of far away (slow moving) planets for correlation
(Price index to be filled in).

Guidelines on forecast
Please read the guidelines under "Sea of Liquidity". Saturn (Satan or anti-USD) is inflationary. Jupiter (the giant planet representing U.S. the most powerful nation, and representing USD which is - alas! - not so powerful) is deflationary.

Forecast on World Hyperinflation
(Readers are advised to verify the data presented and draw their own conclusions).

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.

NOTES 9-13
Note 9
Similar to [Neptune Conjunction Saturn] in 1917-1918. [Neptune Opposition Saturn] is more inflationary.

Note 10
Similar to [Uranus Opposition North Node] along Pisces-Virgo in 1923.
Be it Opposition or Conjunction, the line of gravitation goes right through the Sea of Liquidity.

Note 11
Similar to [Saturn Conjunction North Node] in Libra in 1922.

Note 12
The same aspect occurred in 1918-1920.
[Uranus Opposition Saturn] brings out Pisces sign influences as well as Saturn's destructive planetary forces.

Note 13
The same aspect occurred in 1919-1920 in Leo. [Neptune Conjunction Jupiter] in Aquarius is deflationary.

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.
Mercury = 0.055Em (earth mass). Venus = 0.82Em. Mars = 0.11Em. Jupiter = 318Em. Saturn = 95Em. Uranus = 15Em. Neptune = 17Em. Pluto = 0.002Em.

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:

"Him the Almighty Power
Hurld headlong flaming from th' Ethereal Skie
With hideous ruine and combustion down
To bottomless perdition, there to dwell
In Adamantine Chains and penal fire,
Who durst defie th' Omnipotent to Arms."

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
Contact
Hong Kong, 5 March 2004

APPENDICES

APPENDIX A

GERMAN HYPERINFLATION - Computation of heliocentric planetary aspects

Neptune_0 degree_Saturn = Conjunction = 1917-10-18 minus 69 days => 1917-08-10

Uranus_180 degrees_Saturn = Opposition = 1918-10-13 plus 238 days => 1919-06-08

Neptune_0 degree_Jupiter = Conjunction = 1919-10-08 plus 77 days => 1919-12-24

Uranus_180 degrees_Jupiter = Opposition = 1920-10-02 plus 29 days => 1920-10-31

APPENDIX B

WORLD HYPERINFLATION - Computation of heliocentric planetary aspects

Neptune_180 degrees_Saturn = Opposition = 2006-07-04 plus 152 days => 2006-12-03

Uranus_180 degrees_Saturn = Opposition = 2009-06-18 plus 77 days => 2009-09-03

Neptune_0 degree_Jupiter = Conjunction = 2009-06-18 plus 93 days => 2009-09-19

Uranus_0 degree_Jupiter = Conjunction = 2010-06-13 plus 103 days => 2010-09-24

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