Yowls of disagreement from the Biden camp have met Fitch’s unexpected downgrading of America’s hallowed triple A credit rating. Economic numbers are always subject to vicious argument but the key to the mark down may be political rather than economic. Fitch did note there was an “expected fiscal deterioration over the next three years” and “a high and growing general government debt burden”. But also noted an “erosion of governance” over the past two decades “that has manifested in repeated debt limit stand-offs and last-minute resolutions”.
The FT remarks: “the political ecosystem is so polarised that it is hard to imagine Congress taking the sensible steps needed to tackle America’s fiscal problems.” The ideal scenario would be Trump knocked out and Biden steps aside which could enable “centrist political forces to prevail – where sensible bipartisan fiscal policies might emerge in Congress to tackle the debt.” But if Trump remains standing and, worse, wins he could, as before, threaten the independence of the Federal Reserve, deliver unfunded tax cuts and fail to trim spending.
The US Federal Reserve chart, 16 November 1914 9am, Washington DC, is in trouble this year, next year and worse in 2025. Tr Uranus opposes the Scorpio Sun for major jolts, jangles and sudden events from the middle of this month till mid September and then on and off into early 2025. Tr Pluto has been opposing the zero degree Neptune from earlier this year as it moved into Aquarius and will be back from January 2024 on and off to the end of the year – bringing confusion and a sense of devastation. Into 2025 tr Neptune and Saturn will square the Fed Res Saturn Pluto which will raise levels of uncertainty and anxiety to new levels. And the following year SA Neptune will conjunct the Sun for an unhelpful year where financial security is concerned.
Jerome Powell, 4 February 1953, Chairman of the Fed Reserve, looks road-blocked and discouraged with tr Pluto square his Saturn until late October, as well as panicked about failures this year, extending on till early 2025 with tr Neptune conjunct his Mars and then undermining by conjunction his financial Venus in 2025.
Biden’s Term chart is about to hit its bumpiest patch within weeks and extending over the next six to eight months with one setback after another. There’s nothing to indicate this will be financial specifically but it could include that. The Term chart does have the North Node in the 2nd suggesting that not relying on debt will be an imperative, though it is a celestial hint that may be ignored.
There is also that notable Solar Arc Saturn conjunct the USA Mars by mid 2024 and then square the Neptune by 2025 on the USA country chart – which will be a time of mishaps, confusion and high anxiety.
The last time there was a similar SA Saturn hitting the USA Mars Neptune was in 1935/36 when Roosevelt’s New Deal created millions of new jobs and his Social Security Act provided Unemployment compensation and pensions for the elderly – in the face of much Republican and business criticism. He was expected to lose the 1936 election but held on to get a second term. And for historians to ponder the previous one was 1845/46.
Fitch, right, wrong or indifferent is not the point. The Fed Res chart is.
It wouldn’t have something to do with the Republicans threatening another government shutdown, would it?
@ Roderick,
I would imagine that’s something to consider. Many analysts have been warning of this possibility and there are members of the Republican far-right “Freedom Caucus” who’ve been threatening to do just that.
Just a side note: the Fitch Ratings hasn’t always been the most reliable source. This credit rating agency has been subject to a lot of criticism and scrutiny over the years. For example, I remember when Fitch came into hot water over the CDO market.
Even other “gold star” credit rating agencies like S&P Global Ratings and Moody’s have been off in their assessments over the years.
So Chris, you are saying America’s fiscal policy is sound and every one else is ‘off’?
Hmm….. how that potential state Marjorie mentions could affect the dollar, over the next 3 years, that so many stock exchanges are linked to is a whole other matter.
@ Jennifer E
The government’s fiscal policy would be great if people would stop electing Republicans who give the already wealthy more tax breaks.
Every time we have a Republican president and a Republican controlled Congress they pass another tax cut for the 1%.
Unfortunately the Democrats never repeal any of these tax cuts because Republicans would be called tax raisers and Reaganomics aka voodoo economics is so entrenched in the American psyche.
@ Jennifer E,
that’s not what I’m saying at all. I have no idea how our fiscal policy or economic situation will pan out over the next few years. I say the same for the global economy.
I was simply pointing out that even the “gold star” credit rating agencies (like Fitch and Moody’s) haven’t always anywhere near accurate in their assessments. So, I take that into consideration.
At the same time, I don’t say with absolute certainly that they’re wrong either.
All in all, anything can happen between now and the next few years. We’ll see.
In that last sentence, you are undermining both credit ratings and astrology 🙂
@ Unmystic Mom,
I am indeed undermining both credit rating agencies. I’m not obligated to accept their assessment at face value.
“…He was expected to lose the 1936 election but held on to get a second term. …”
He was expected to lose only by Gallup Polls – who did their interviewing by phone! That was one way to leave out the dispossessed who could not afford a phone. Some things you just cannot make up.
On the SA Saturn hitting the USA Mars Neptune in 1845/1846, the major events were: the incorporation of Texas into the United States and admission of Florida and Iowa too, the outbreak of the Mexican-American war, the secession of California from Mexico, the US decision to stop sharing sovereignty over the Oregon territory with Britain and implement a border at the 49th parallel, and last but not least, President James Polk’s ‘Manifest Destiny’ speech, in which he endorsed the idea that it was the USA’s destiny to expand to the West. It seems like this transit manifests in ways which expand the scope of the nation, give concrete reality to a dream of aggressive nationalism or bring into being schemes for using the nation’s resources to assist the vulnerable.
I really get a lot out of your brilliant merging of geo politics with astrology! (I’ve commented before but forgot my name)
Now to the issue at hand : What’s so weird is how Fitch cites that actual actions of the Republicans in their downgrade, and then makes a false equivalence to Biden being some kind of radical.
That’s laughable. Biden has been doing a rather shockingly good job on the economy, which economists have directly attributed to his policies (not a given) with his many bipartisan bills having passed to shore up manufacturing and jobs.
Things are not even on both sides only one side has a Trump. Just because Biden is his presumed opponent doesn’t make them equal, someone needs to tell Fitch.
No doubt Biden faces $ troubles since Republicans have already announced they’re going to war on the budget. Notably however, their war isn’t against debt, given they contributed to a large part of recent debt with Trump’s tax cuts to benefit mostly wealthy (and their years later auto provisions to help mostly wealthy). E.g., They want to keep defund the IRS, which under Biden’s new guidance is actually going after wealthy tax cheats finally and making a lot of cash doing so.
It’s really quite sad to have a political party bent on destroying the country to get power back. Not sure how much longer this system can hold, frankly.
Your other piece on the U.S. was quite scary and yet can’t say I disagree with what the astrology is saying.
Before 1845/46, an individual could walk into a bank and demand whatever credit he desired for his business. If not received, he could demand redress through a duel in certain states. Bank, municipality and state ledgers suffered accordingly. (I wish I was making this up.)
Fitch’s justification is understandable, so I don’t fault them. What I do fault is the Dems initial reaction, which was a knee jerk one. They should’ve instantly start laying the majority of the blame where it belongs. At the feet of the GOP with their MAGA “retribution” style of governance. They brought the debt ceiling to the brink and will likely shutdown the government down again this fall out of vindictiveness.
Both sides are not equally responsible so no false equivalences please.
Thank you. I’m so tired of false equivalences.
Totally agree with Pamela and Troy.
Fitch like all the rating agencies singularly failed to predict the 2008 Financial Crisis so its predictions should perhaps be taken with a pinch of salt. The business was founded on 24 December 1914 so has outer planet placements very similar to the Federal Reserve created 16 November 1914. The Fitch natal Neptune at 29 Cancer is currently being opposed by transiting Pluto. The Fitch chart has Pluto at 1 Cancer opposing a Mars Sun at 1 Capricorn. Interestingly the US 1776 Venus at 3 Cancer lies close to this axis. The US Government’s fiscal debt problem were well known prior to the downgrade so the decision by Fitch is largely politically symbolic since the government can quite literally print money to pay its debts which essentially what was done under QE. The bigger problem is the US current account deficit in trade with the rest of the world. There is much talk about the BRICS setting up a system to challenge dollar hegemony as a reserve currency. However, it needs to be remembered for countries like China to run massive surpluses in trade they need counterpart countries to run deficits. By the very nature of trade BRICS countries can not all run surpluses with each other for ever and if western nations are unable to finance their deficits or to buy using their currencies then world trade will collapse. The evidence of the 1930s shows that sort of event can be every much as deadly to creditor nations as to debtors.
these credit rating
companies are a racket
Than you Marjorie. Very interesting. I see so many parallels with the American political scene and the U.K. As both our main Political Parties, in both countries, appear to have become so entrenched in their Party Politics that we, the voters, appear secondary. The two horse race between left and right has morphed into a political stagnation, as we flip flop between outdated attitudes. They are too comfortable in their power. Biden is now too old and Trump – in many ways is in a league with his own ego. Maybe America may have an undefinable Election result in 2024 or an extremely narrow win? Culminating in a need for alternatives. Just when transiting Pluto in Aquarius will begin to ignite the energy of the midpoint between its Natal Pluto and America’s South Node in Aquarius in the 5th house of creativity. As Uranus/Aquarius is the natural ruler of the 11th House of Groups. Perhaps the conception of new Political groups will take hold or angry groups will demonstrate for reform? Marjorie mentions the Solar Arc Saturn conjunct America’s Natal Mars in the 9th House, in 2024 this may stir a need for talks concerning a new philosophy in economics or rulership, as Taurus rules the 9th house cusp – money will be an issue. Along with Saturn square Neptune – America’s dream is in question. As its Natal Capricorn Pluto/South Node midpoint will feel the full strength of Pluto in 2025, America will be confronted or in the midst of confrontation with past problems or mistakes, that will not be able to be overlooked; forcing issues. Some soul searching in the offering. If that doesn’t put the plutonic energy into America for change nothing will!