The following is an excerpt from this weeks Astrology Traders newsletter by Karen Starich. Check out Astrology Traders for specific dates and in-depth analysis of future events in the various markets she covers and start profiting from tomorrow’s news today.
There is a very disturbing setup of transits that hit China’s chart also on January 25th. The most critical is Pluto square China’s Sun from the sign Capricorn, and suggests China will play hardball with the Fed, and could make an aggressive move with their currency. However, there is a risk for China with the Pluto aspect that could potentially lead to the overthrow of the current government, or a serious threat to it that I will be addressing in coming weeks.
China is a thorn in the side of the Fed, and last October Congress moved to pass a bill that would end China’s unfair trade practice of currency manipulation. At year end June 30, 2011 China reached an all time high of foreign currency purchases totaling 730 billion. After the Congressional vote Ma Zhaoxu, a spokesman for China’s foreign ministry, shot back with
“This proposal in the name of so called currency misalignment is protectionism and a serious violation of WTO rules, and won’t be able to resolve America’s own economic employment problems.”
In December Chinese Premier Wen Jiaboa and Japan’s Prime Minister Yoshihiko Noda met in Beijing and made agreements to promote direct trading of yen and yuan without using dollars, and will encourage the development of a market for companies involved in the exchanges. Central banks from Thailand to Nigeria plan to start buying yuan assets as slowing global growth has capped interest rates in the U.S. and Europe. More nations are moving around the dollar and the Federal Reserve. I suspect Timothy Geithner’s trip to China and Japan has more to do with currency than with U.S. sanctions on Iran. Watch for news regarding valuations of yen and yuan in the next couple of weeks.