By Karen Starich
In 1993 when President Clinton was struggling with his budget deal it was the invisible bond vigilantes that almost wrecked his presidency. James Carville came out in the media with a spiritual epiphany declaring his desire to reincarnate as the bond market so he could intimidate everyone. It looks like the Federal Reserve was taking notes and has done exactly that. The irony is (and this is how the karma works) the outcome may be exactly the same.
Clinton feared inflation and was forced to cut spending in the same way that Obama may be forced to, despite the fact the Fed controls the bond market and has pledged to continue the low rates. There are rumors that economic officials in the administration are telling Obama that the bond market needs to be appeased. This is truly amazing if the Fed does control the bond market yet this invisible hand of the bond vigilantes is still a threat.
January 13th and February 11th: The dates the invisible bond vigilantes show up. Watch for a bullish move on TBT
The following is an excerpt from the Dec 23th premium weekend update by Karen Starich. Karen uses astrology to forecast events in the financial markets and Jeff Pierce adds in the technical picture for the stocks in focus. Astrology Traders provides specific dates and in-depth analysis of future events for the financial markets through weekly updates, trade alerts, and educational webinars.