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GOLD/DOW RATIO AND THE STRUCTURE OF HISTORY

Dec. 29, 2009 1:16 AM ET
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DOW-GOLD RATIO, 200 YEARS LATER

While the correspondence is not perfect (especially look at 1893-1911 period), 18-Year Night Cycles and rise of gold against the Dow Jones Industrial Average (decline of the price-line in the chart) and 18-Year Day Cycles and rise of Dow against gold (rise of the price-line in the chart) is borne out.

Day Cycles are, put simply, periods of inflation of the economic bubble through the expansion of credit/debt, usually resulting in a banking crisis at or near the end of the 18-year cycle. Day Cycles are an 'out-breathing' process, an expansion of national interests into an internation arena, resulting in some form of Empire -- and are defined by the deification of reason, science, engineering, the military arts, the triumph of empiricism, and the Emperor mentality. Day Cycles are Patriarchal by nature and exhibit Old Testament religious hardness and values. Day Cycles exemplify the 'filling up' process: filling up with sensual experience, wealth, power, filling up cities with human habitation, self-indulgence. Day Cycles are all about SUCCESS in the objective world; success on Earth, through Private Enterprise.

Night Cycles are periods of deflation of the economic bubble through the contraction of credit/debt, usually occurring after a banking crisis which often results from an insolvency brought about by a period of overextended expansion of credit. Night cycles are an 'in-breathing' process, a turning away from the objective world, a magnification of the reality of religion, the soul, and the subjective reality; a period of worldly failure, or self-judgment, and a period of physical shrinking. Night Cycles exemplify the 'emptying out' process: a giving up of the myth and the desire to achieve success in the eyes of others -- as the soul stands face to face with God, touched by the reality of Death. Night Cycles are Matriarchal by nature, and exhibit New Testament religious generosity, forgiveness and mercy. Night Cycles are all about SUCCESS in the subjective world; success in Heaven, through Public Enterprise.

If this picture is an accurate rendition of history (relatively accurate), then we can't expect to begin another growing season until we have shed our debt, transformed our condition of obesity (which is a symbol, after all, of our spiritual condition) into one of austerity and wiry strength. This transformation cannot happen without a spiritual conversion away from material comfort toward spiritual redemption.

2019 is the year when spiritual rebirth will begin. Until then, more pain, more destroyed illusions, more lies and deception from our leaders, and more emptying out. Empty houses; empty bank accounts; empty justifications from our leaders; and empty tankers wondering where all the world trade went.

2019-2028 will be the period of Spiritual Miracles. 2028-2038 will be the period of the Golden Age, when everything works, when expansion runs on its own.

2038 will be the extent of the next expansion, with another banking crisis, followed by another depression, another descent into the Night world.

The current Democratic Party is the Mother Principle in America. The Mother Principle tries to take care of the family, provide food and comfort, and help the nation survive the difficult Night. The economy doesn't grow during the Winter, obviously. The job of the Democrats is NOT to grow the economy, but to provide support for the society during the time when the fertilizing power of the Sun is absent.

The current Republic party is the Father Principle in America. The Father Principle brings fertility and expansion back to the society. The Father Principle will get weaker and weaker from 2001-2019. Then, slowly, it will begin to grow again, bringing light and warmth (and a future that can be seen) from 2019-2038.

The Father Principle (the Sun) brings law, warmth, wealth, and physical power back to the society in the form of Individual Responsibility. The Mother Principle (the Moon) brings soul back to the society -- brings water to a land grown arid, a desert of male rigidity -- and brings back an understanding of myth, the primitive religion -- which allows the Male Principle (as the Son) to be re-born, and to replace his dead father as the ruler of the world. The Mother Principle is the vehicle of birth. It is the Mother Principle that gives re-birth to the society -- and it is in the Night, the Dark Age, that this happens.

Myth is a map that, in a symbolic language, explains the movement of history. Of course, the Father, the empiricist, hates this world, because he does not really understand it. He understands science. He uses science to dominate. He is helpless in the Dark World because only myth explains the phenomena of Night.

The Old Testament says: "Honor the Father and honor the Mother." Honor the Day Cycle and honor the Night Cycle. A society can theoretically live for ever if it honors both the Father and the Mother, both the Day Cycle and the Night Cycle.

During the Night Cycle the Public Sector grows as the Private Sector shrinks; during the Day Cycle the Private Sector grows as the Public Sector shrinks. That is how it must be.

I started this as a description of how gold does well during the Night Cycles -- and lapsed into a description of mythological principles. But these are all part of the same invisible structure, one visible to the mind's eye only.




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