“To be sure, lowering interest rates to keep the economy on an even keel when adverse financial market developments occur will reduce the penalty incurred by some people who exercised poor judgment. But these people are still bearing the costs of their decisions and we should not hold the economy hostage to teach a small segment of the population a lesson.“ -- Federal Reserve Vice Chairman Kohn in a speech this morning at The Council on Foreign Relations
It is these two sentences that have set the market on fire today. By uttering these words at a venue of the global elite, the Fed appears to have given the green light to lowering rates at its December 11, 2007 meeting.
Federal Reserve board members like to emphasize their “dual mandate” of balancing “price stability and maximum employment”. The Fed is referring to the Full Employment & Balanced Growth Act. The chart for the Act shows there’s nothing balanced about it. Employment here is ruled by the Moon (the public) which is aligned with Saturn (limited growth.) The Moon and Saturn in Virgo (workforce) square Neptune (credit) in Sagittarius (ruled by Jupiter). Keeping the country indebted through low interest rates helps insure the prosperity of the economy. The Sun (stock market/speculation) square Jupiter (growth/expansion) shows business and political leaders will obtain the most benefit from the Fed’s monetary policy. Kohn’s comment that “Heightened concerns about larger losses at financial institutions now reflected in various markets have depressed equity prices.“, reflects a theme expressed in numerous Fed statements.
Donald Kohn and Ben Bernanke both lack the earth element in their charts.* The real costs of daily living - food, fuel, housing, medical, etc. can be obfuscated and outright ignored, as earth element lacking individuals tend to take a less practical and pragmatic approach to life.
Bernanke’s natal Sun is opposite Jupiter, while Kohn’s progressed** Sun is opposite Jupiter. Their identity (Sun) is dependent on keeping the pro-growth crowd happy (Jupiter). In fact, the small group that Kohn cites as needing to be taught the moral hazard should actually include all who have paid up during the housing boom. Not such a small group after all if you think about it in these terms.
* There are four elements in astrology: fire, earth, air, and water. Sometimes individuals lacking a certain element will overcompensate for it. For example, President Clinton was born with no planets in the water (emotions) element. “I feel your pain” is a famous expression of his.
** A mathematical method of prediction that calculates the birth planets forward in time. By progression, Kohn receives the earth element. His progressed Sun is in Capricorn (big business) which reflects his more pragmatic opinion quoted at the top of this post.
“Financial Markets and Central Banking”: Kohn speech at CFR 11/28/07 http://federalreserve.gov/newsevents/speech/kohn20071128a.htm
Click on Federal Reserve under DIRECTORY for related posts.
Donald Kohn: November 7, 1942 time unknown Philadelphia, PA
Ben Bernanke: December 13, 1953 time unknown Augusta, GA
Full Employment & Balanced Growth Act: October 27, 1978 2:03 PM Washington, DC
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