While the Great Depression of the 1930s dragged on, a business astrologer described a method for predicting long-term economic trends that continues to produce spot-on results in the current era.
In a book published almost 80 years ago, financial astrologer and author Louise McWhirter described her theory of business cycles and suggested the low point for the economy had already been reached in 1933 – when the Great Depression was at its lowest ebb. She also predicted the next peak in economic activity was years away in November 1942.
McWhirter historically tracked cyclical ups and downs in the economy for 100 years, beginning in 1850. Given the times, her depression-era prediction that the economy would reach a new cyclical high point late in1942 may not have seemed to promise much. However, the predicted cyclical turnaround turned out to be dynamic as it coincided with the massive economic stimulus spending set in motion by the build-up for World War II.
At the moment we have the Federal Reserve Board’s controversial new stimulus program (quantitative easing) giving the economy a boost. However, if the cyclical pattern described by McWhirter is correct the economic Armageddon described by critics of the Fed’s currentpolicy is not in the stars – at least not right away.
McWhirter’s predictive methods accurately determined the economy would hit bottom in 2008 and start a gradual climb back to normalcy a year later. By 2012, economic performance should be improving as part of an upward trend that is not expected to peak until 2017. So, at this point, we’re still a few years away from the next significant economic downturn.
In her book, Astrology and Stock Market Forecasting, McWhirter describes the correlation she discovered between economic activity and the 18.6-year lunar cycle defined by the moon’s transiting nodes. The nodes are sensitive points in space that are astronomically determined by the moon’s orbit around the earth and the earth’s apparent path around the sun – the ecliptic.
The north and south nodes are always 180 degrees apart in opposing astrological signs. In tandem, they travel backwards through the zodiac in counter-clockwise fashion. The ascending north node is always rising above the ecliptic and the south node descending below it.
In studying the connection between the moon’s nodes and economic activity McWhirter consistently found the north node in the sign of Aquarius during periods of low economic activity. At the halfway point in the 18.6-year cycle, the north node is moving into the sign of Leo, where economic high points have historically been recorded. After this, the long-term trend ratchets lower as the north node slowly and deliberately makes its way back to the sign of Aquarius, where the cycle begins anew.
Astrologer Alice Reichard describes a similar study that looked at highs and lows for the housing market. Her study tracked data dating to the Civil War and also found a correlation between the transiting lunar nodes and cyclical highs and lows in the housing market. Only the housing cycle begins from a different starting point and typically leads the economic cycle into the next recovery period.
In August 2009, the north node moved into the sign of Capricorn, which is where Reichard predicted the low point for housing would be. Only this time around the market was severely overheated and the downside was particularly turbulent with falling home prices and foreclosures at levels not seen since the Great Depression.
Today the housing market in the U.S. is in recovery mode but is not expected to peak until 2020. That’s when the north node will be arriving in Cancer, the astrological sign identified with domesticity and matters related to hearth and home.
Both the financial and housing markets are influenced by cycles within cycles. And long-term progress invariably is made in fits and starts. Obviously, the fiscal policies of governments can also help or hinder the way each cycle unwinds.
For example, in 2007, the housing market was supposed to be winding down as it approached a cyclical low. Instead, it was racing along at high speed with an under-regulated financial industry awash in capital it couldn’t wait to lend to unqualified borrowers. When it came the adjustment was abrupt and pernicious – and right on schedule.
The economic bubble that developed in the housing industry in 2007 precipitated the economic collapse that followed in 2008. With the moon’s north node poised to roll into the no-nonsense sign of Capricorn it would have been far better had bankers honored this development by exercising more caution and fiscal restraint.
Another example of policies interfering with cycles can be observed by contrasting current economic developments in Europe and the U.S. The moon’s nodal influence is the same everywhere but policymakers in Europe chose a different way to deal with economic contraction.
The Europeans opted for the kind of austerity program that may have been a better option earlier in the cycle. The U.S. chose to stimulate the economy with apparently better results. However, at this point, there’s ample time for adjustments to be made.
If history repeats in the broadly general way it usually does there’s a very good chance that global economies will all be expanding when the north node returns once again to the generous sign of Leo.