I hate to say “I told you so.” Actually I love it or I wouldn’t bother writing these reports.

The recession recently announced its arrival. Don’t kid yourself. When the feds start cutting rates as they did the other day, it is the last act of a desperate man (not the third act of Henry the 8th). We are seeing the results of the Saturn – Neptune opposition that I have been warning of for several years. In July 2005 Saturn entered Leo. For a year prior to that date I cautioned that the housing bubble would top out once Saturn left Cancer, and that this would lead to a crisis in our economy. That month was the very peak of the housing markets. Once the Saturn – Neptune opposition began to apply in the summer of 2006 the cracks started to show.

Historically this opposition has consistently coincided with both inflation and recession. The stocks are having a meltdown as reality (Saturn) comes out from behind the fog of illusion (Neptune). How bad will it be, and how long will it last have much to do with several things, including who we elect to the White House and senate, and how much they are willing to fight for change. But, the dye is cast. Whatever Democrat inherits this mess will be in charge of a nation on the verge of financial and moral bankruptcy. (Yes, it will be a Democrat, no matter what woman they nominate).

During the past 7 years our society has seen collusion by government officials to put all of the resources this country has in the hands of the super-rich. There is no place left for the individual business owner. You either grow to the size of Starbuck’s or you eventually get push under the rug. We all know what is happening. I explained some of this astrologically in my article “The Deplanetization of Pluto” (see the website). By turning our backs on the middle class and allowing Bush to be in power for two terms we have allowed the this class war championed by Ronald Reagan to become the law of the land. Rupert Murdoch - Need I say anything more? We have become a notion of extremes, and the full brunt of what that means will begin to show itself in the next few years as trillions of dollars of money ceases to exist. The end of the cash cow means that “them that’s got shall get, and them that’s not shall lose”. God bless the child that’s got his own.

The last time Saturn opposed Neptune was from June 1971 – April 1972. Inflation was running so rampant and the economy was in such a state of disarray that Economists refer to this period as “The Great Inflation of the 1970’s. August 1971 Nixon implemented a price-wage freeze (Saturn’s limitations), which didn’t work.

Oil prices were exploding and public sentiment hit an all time low. Neptune’s ability to create confusion and misdirection to Saturn’s structure and stability was obvious. Inflation of this sort usually only occurs during wartime, when everything is artificially blown out of proportion. But the power of the Saturn – Neptune opposition was sufficient to create massive financial instability in peacetime. This led to an inflationary recession, the same situation we face today.

In 1936 as Saturn opposed Neptune the great American recovery from the Great Depression hit a speed bump. The year 1936 is referred to as Roosevelt’s recession, a period that almost cost him his political capital. The worldwide depression was at its height, and events around the globe were beginning that would have tremendous effect upon our culture.

Gold seems to have a particularly strong relationship to this transit. 1792 The mint and coinage act was passed, which eventually resulted in the world gold standard. In 1933 the world ended the gold-standard as it had been defined up to that point. But in 1936 as Saturn was directly opposite Neptune, Roosevelt attempted to balance our budget with gold once again helping to create the recession. From 1946-71 we were back on the world gold standard, which Nixon dissolved in 1971, just when Saturn was opposite Neptune.

Now gold is trading the highest it’s been in 20 years. Could it be that we are facing such a global financial crisis that we could return to that antiquated system? Remember, the U.S. has increasingly sold off our gold supply through the years; deeming it worthless and unimportant to our security. Could this be a rude awakening if the world chooses to redefine it position on that precious metal?

Since July 2005 the housing markets have gone down precipitously. Across the country real estate has gone from being the savior of our economy to being the albatross around our necks. New houses stand unsold and existing homes are getting harder and harder to unload. Only New York City seemed to be immune. That will no longer be true. Once the Wall Street crowd loses the big bonuses they have come to expect you will see a disintegration of the markets in this city. Manhattan will be hit especially hard, as new construction has flooded the market with condos and ridiculously overpriced rentals. As in other states, with the collapse of the housing market here there will be fewer taxes to collect, less disposable income and less money to rebuild a seriously compromised infrastructure. A collapse in New York City housing prices would lead to a crash in our local economy and set this city back 30 years.

The real indicator of what we have in store in the fact that they are once again building the 2nd Avenue subway. In 1925 ground was broken to begin, only to be stopped by the depression. In 1942 the 2nd Avenue El was torn down and Eastsiders were again promised a subway to replace it. Then the Second World War stopped construction. In 1950 $500 million dollars was set aside for this project. The MTA spent that money on repairs of the existing system and not on this line. In 1972 Nelson Rockefeller and Mayor John Lindsey once again began construction, only to see the recession of the 70’s put an end to that plan. Now they have begun tearing up the avenue and claiming eminent domain over buildings and existing businesses to construct the line and the new stations it would require. It seems a pretty good bet that we are about to enter a period of financial stress that could make it difficult to complete this project.

Let’s get real folks. The subway system in New York City is completely indefensible. It is a relic of the past that will eventually either be filled in or turned into “luxury sub-level condos”. The recent tornado and flooding that shut down the subways and crippled this city show just how vulnerable the whole system is. With eleven dollars and forty eight cents worth of explosives terrorists could set up explosions in half a dozen places on the subway lines and stop New York in its tracks. To spend billions of dollars to dig another vulnerable whole in the ground is just short sighted and foolish. It isn’t a matter of if the subways are attacked, but when.

The Saturn – Neptune opposition completed June 25th. But that wasn’t the end of the problem. When an aspect completes its effects wane. But that doesn’t mean that the results of your actions while that aspect was in orb disappear. Often the wake of a difficult transit can bring more difficulties than you experienced during the aspect. The results of the Neptunian aspect will continue for a long time. There is currently no foundation underneath the real estate business.

For the past year we have had two other important aspects in effect. Jupiter has been in trine to Saturn and in square to Uranus. The trine has supported the growth and financial expansion of the stock market and the upper class. Although the structure of Saturn has been severely compromised by its opposition to Neptune, we continued to see the Dow move up – past 14,000. That would be good news if there was something underneath that was supporting this growth. But a trine is not sufficient to withstand other, more powerful transits. Because Jupiter has also been in square to Uranus we can expect this aspect to produce sudden and severe reactions. The first two times this square occurred Saturn was there in trine to lend a hand, putting a foundation beneath the markets. However, in the second week of October 2007 Jupiter will square Uranus after Saturn has entered Virgo. Look out. The trine of Jupiter and Saturn will occur once again in January 2008 once Jupiter has entered Capricorn. Once that completes the stability and underlying structure will no longer be valid.

This society has become unbelievably greedy, with dozens of laws passed to support the rich at the expense of the working man and the middle class. Credit card companies send out pre-approved credit to people who can’t afford it in the hopes of making those people slaves to their debt. Then the Republican congress makes it illegal to bankrupt those very debts, making sure that these consumers are trapped in an endless struggle. Although this country has always favored the wealthy, the Great Alignment of May 2000 in the sign of Taurus (see my website for further details) guaranteed the election of G.W. Bush and his disastrous economic policies swing the pendulum all the way to the right. Unbridled corruption and payola has polluted our system and handed power to the very few. I don’t believe things will be rebalanced until there is a serious crisis that will demand change. There have been times when great men of vision, such as F.D.R. have seen the handwriting on the wall and come to the aid of our way of life. Where is our hero today?

Now as Wall Street melts and New York City gets a reality check the overbuilt, over-inflated real estate market will take a sever and well-earned trouncing. The Island of Manhattan has been inundated with condos. The rents have gone through the roof. Everybody wants to live here. Until now. Wait a year or so. This once vibrant and diverse city now exists almost exclusively on Wall Street earnings. If the markets take a beating, those condos will sit begging for owners. The auction block will be quite busy, and if you happen to have a million or so lying around you could get a few bargains that might pay off handsomely in the future.

But I’m afraid that this is just the beginning. With Jupiter, planet of growth, about to enter restrictive Capricorn we are going to see a year of implosion, as liquidity continues to dry up. Because of the sever class distinction that now exists in this country this will be particularly hard on the remnants of the middle-class.

That G.W. Bush is the worst president this country has ever had is irrefutable. The question now is: can we recover from the policies this man has implemented? There are so many issues that we face as we enter a new era. When the Democrats inherit the White House in 2008 they will be faced with a nation on the brink of catastrophe. Out economy is withering away week by week. But of all the tests we face the most critical is the health industry. We have been incredibly lucky so far not to have had a national issue, such as a flu epidemic or other crisis. With over 40 million Americans uninsured, and Bush vetoing every plan to help cover those who can not afford it, we are simply in a waiting period. There may be time to fix things, at least enough to prevent the worst of it, but we won’t. The Democratic president will have her hands full just helping the middle class survive. There will not be enough resources to rebuild this fractured and sick society.

This October Jupiter will square Uranus for the last time. Without the Saturn support that was present the last two times this unsettling event occurred we could see a stock market crash.

We are heading for a recession for one reason only – greed. We have handed the society over to the bankers and big corporations. The sub-prime mortgages were given to people who could not afford to own a home by the same people who send you pre-approved credit cards knowing full well you will use more credit than you can afford and wind up in debt for the rest of your life. And they invented a credit score to make sure they could keep you under control. If you refuse their credit, or cancel a card your score goes down. It’s a scam to keep you in debt the rest of your life. This is the legacy of Ronald Reagan’s so-called trickle down economics.

In the present atmosphere the common man has virtually no recourse. And as Jupiter, planet of expansion enters restrictive Capricorn all the growth and liquidity will be lessoned for at least one year. Without cash, the system will collapse. Credit card debt, unpaid mortgages, and an increase in unemployment will lead to a deep recession, while at the same time inflation will raise the price of our necessities. Add to this problem the health care crisis and you have the makings of a long-term financial and sociological breakdown.

Mitchell Scott Lewis
July 2007
New York City
(212) 726-3814
Copyright 2007
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