Global Economic Outlook For the year 2009

As the global economic crisis unravels, many people are asking questions about future. Some are claiming that worst is already over while others forecasting the far worse conditions to set in. This article is an effort to look at global economic outlook from astrological perspective. The series of Bank failures and liquidity crunch was caused by the Saturn in Purva Falguni Nakshatra. Now thankfully, Saturn is going to move out into Uttar Falguni Nakshatra during November end. This will certainly result into improving liquidity scenario across the world. However, the trine aspect of Jupiter on Purva Falguni will also end and with that the government's focus will move away from strengthening the banking system, as other serious issues will begin to crop up. However, the overall effect of both these movements is likely to be positive and will result in easing out of liquidity situation. Trine formation between Saturn and Jupiter in November end, may cause events providing the boost to the sagging morals of the financial markets. As Jupiter transits into Capricorn during mid December, it will begin to give rise to inflationary conditions especially with respect to industrial commodities. It will present a serious inflationary threat to the global economy. In recent times, there has been a lot of talk of deflationary threat among economists worldwide and to some extent, it has been the supportive factor for the interest rates to come down heavily in pat few weeks. However, astrological positions show that inflation and not the deflation is the serious threat. As Rahu is currently positioned in Capricorn and now Jupiter will also enter the same sign and they together will build serious conditions for upsurge in commodity prices, which may assume serious dimensions during mid Feb 2009, as Jupiter and Rahu gets exactly conjunct. Meanwhile, Saturn in Uttar Falguni Nakshatra will force the governments worldwide to take care of issues related with general masses. Till now, governments have only tried to handle the situations related with asset deflation and banking stability. Now the focus will shift to handling public grievances and new packages will be designed worldwide to provide solace to masses. Such plans will also cost lots of money to the exchequers. As the government funds worldwide have almost disappeared in the recent rescue acts, this new funding has to come by way of printing fresh currency, which will cause serious inflationary pressures. Positioning of Ketu in Cancer has already caused serious agricultural inflation and hence transit of Saturn in Uttar Falguni will further add fuel to the fire. Hence it seems that a major inflationary scenario is building up at this stage. As Saturn enters Purva Falguni again in the beginning of February, serious inflationary pressure may cause the interest rates to rise. Saturn will be in Purva Falguni till mid of August and it will force the central bankers to go on a series of interest rates hikes to quench the fiery inflationary scenario. Rahu along with Jupiter will continue to be in Capricorn till first half of November. This astrological combination combined with Saturn in Purva Falguni will force the series of interest rates hike till November 2009. Jupiter will move out of Capricorn in between in the period of May–July and hence it will be placed in exact opposition to the Zodiac sign of Leo. Hence, this may be the time for temporary bottoming of asset prices, even though a meaningful bottom will be established only after Jupiter finally moves into Aquarius during December end. As Saturn enters Uttar Falguni again in the period of Mid August, new financial regulations will come in place, in response to the huge public outcry. Since Pluto is also placed in Mula nakshatra, there will be serious rethink about the extent to which speculations should be allowed in the economy. This will lead to very tight norms and even banning of speculation in next few years to come (till Pluto remains in Mula nakshatra, which is ruled by Ketu). As Saturn moves into Virgo by mid September, the serious depressionary conditions would begin to engulf the masses into serious bouts of unemployment, food riots, social conflicts and other such issues. Ketu in Cancer will also be aiding such a scenario. This situation will only begin to ease out, once Ketu moves out of Cancer in the beginning of Nov. To sum up the whole scenario, it seems that the crisis has just begun and year 2009 will bring serious repercussions, as the crisis begins to spread from financial sector to real economy. It seems that by September, the recessionary conditions will worsen into depressionary conditions. As central banks are forced to print currency to fund their rescue packages, the inflationary pressures will begin to take its toll. There will also be serious upward pressures on commodity prices fueled by speculation and aided by series of rate cuts, which will force the banks to reverse the cuts and go on a series of interest rate hikes. There will be norms to curb the speculation and the so called sophisticated financial instruments will face serious restrictions or even phase out. Crisis will enter the public domain and will lead to social conflicts during last quarter of year 2009. Asset prices will only begin to stabilize during the year 2010 and that lead the economic bottoming out process. Banks will have to sell the holding of gold and hence its price will also crash, in spite of the inflation and dollar weakening scenario. Stock markets will continue to witness the downward spiral, even though at the slower pace. Commodity prices will witness sharp up moves. Dollar may collapse, which may provide a helping hand to the falling crude oil prices. Even though the Indian economy is quite robust, it will still yield to the global pressures and we may witness serious slowdown and strong inflationary scenario. It appears that Indian stock markets along with other emerging markets will bottom out before the developed markets. There is a likelihood of striking the bottom around May-August 2009. Weakening dollar will put exert extra pressure on the price of gold and hence there can be a substantial crash of gold prices in Rupee terms. courtsy- Playful Mystic Shivo