The following is part 2 of a 3 part serious by Karen Starich, who uses astrology to forecast events in the Stock Market. Check out her premium service Astrology Traders for specific dates and in-depth analysis of future events.

Paper Dragon II:  The Second Bank of The United States

By 1815 The United States again found itself with mounting debt following yet another war called “the War of 1812” with Great Britain.  Without a national bank the government could neither borrow money nor make payments very easily.  A group of 6 powerful financiers (again the influence of Pluto and the power elite) John Jacob Astor, David Parish, Stephan Girard, Jacob Barker, Alexander Dallas and John C. Calhoun devised a plan to re-establish another national bank.  On April 10, 1816 the House and senate passed the bank bill and it was signed into law again with fierce opposition namely from Andrew Jackson.

Paper Dragon I morphs into an even bigger Paper Dragon II

The Dragon Gets bigger.  Capitalization for the Second Bank was $35 million compared to the $10 million of the First Bank.  The Second Banks’ functions were similar to the First Banks’ acting as fiscal agent for the government, issuing debt to the public and regulating the economy by issuing and redeeming banknotes and keeping state banks’ issuance of notes in check.

The Second Bank was not without controversy.  The first president of the bank William Jones, who had no banking experience or qualifications other than his political connections to the power elite as secretary of the Navy, immediately ran the economy into the ground by extending too much credit and then suddenly restricting it.  A financial panic was the result followed by a steep recession and unemployment.  Although there was a worldwide economic slump in 1819 the main cause in the US was the mismanagement of The Second Bank.

Sentiment toward the bank improved when Nicholas Biddle, a scion of a wealthy Philadelphia family, became head of the bank in 1823.  Biddle, who graduated from Princeton at age 15, understood banking and was an excellent administrator.  He was also very vain, arrogant, and influential among the power elite.  Biddle was notorious for making loans to his power elite friends while denying loans to those who were deemed “not so friendly.”

The “Bank War” and the take down of Paper Dragon II

In 1828 Andrew Jackson was elected President of the United States.  Jackson made no bones about his intent to not renew the The Second Bank charter.  He call the bank “the moneyed monster”  Jackson claimed the bank was an illegal monopoly and in his first annual address to Congress he stated “both the constitution and the expediency of the law creating this are well questioned by a large portion of our fellow citizens..”  With this statement President Jackson declared war on the Second Bank of the United States.

It was not until Jackson’s second term in 1833 that he succeeded in dissolving the bank. Biddle tried to take on Jackson by calling loans and limiting credit in the hopes of creating a backlash and forcing Jackson to relent.  Biddle’s move backfired and when Jackson addressed the nation he said:

“Gentleman, I have been watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.  When you won you divided the profits amongst you, when you lost you charged it to the bank.  You tell me that if I take the deposits form the bank and annul its charter I shall ruin ten thousand families.  That may be true gentleman but that is your sin!  Should I let you go on, you will ruin fifty thousand families, and that would be my sin.  You are a den of vipers and thieves”

President Andrew Jackson dissolved the Second Bank of The United States 1833.

There is an important correlation to 2011 and the year 1833 when Andrew Jackson dissolved the Second Bank of The United States.  In 1832-33 the planet Saturn was stationary at 10 degrees Libra for two months during the time just prior to Jackson successfully liquidating the banks’ assets into state banks and vetoing the re-charter.  Saturn has not been retrograde at 10 degrees Libra until May-June 2011 just prior to the debt debate and the international financial shock on August 5th when the S&P downgraded the US debt.  I wrote on Zentrader July 28th about the potential for downgrades and in the worse case scenario a removal of the dollar as the reserve currency.  Here are the dates I suggested:

  • August 3rd
  • August 15th
  • August 25th

On August 5th the S&P downgraded the the debt.  On August 15th Moody’s downgraded the US economy.  On August 25th Warren Buffet stepped up to the plate and pumped 5 billion dollars into Bank of America potentially saving the financial institution and the US from another 2008 collapse.  Saturn is father time, the reaper of karma, who keeps a perfect set of books and will not give the banking cartel a pass until there is a complete unraveling of the corruption.  This means that Warren Buffet only bought the country some time before that next round of karma descends, which is just around the corner.  Who is going to play the role of Andrew Jackson? Stay tuned for the conclusion in part 3.


Related Posts:

Market Astrology – Three Paper Dragons (Part 1)

One Response to “Market Astrology – Three Paper Dragons (Part 2)”

  1. Market Astrology – Three Paper Dragons (Part 3) | Market Commentary Says:

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