This week, Jupiter and Saturn aligned more closely than they have since 1226. However, the planets of power in Washington struggled to find their own alignment, particularly when it came to finalizing the stimulus bill.
At the last moment, President Trump expressed strong disapproval of Congress’s latest proposal, declaring it laden with unnecessary expenditures and lacking the needed relief measures.
As Congress reconvenes next week, they will aim to salvage a workable agreement. For now, though, discussions around fiscal stimulus and its economic impacts can wait. After all, it is Christmas, a time better suited for reflective pondering.
With that in mind, let us explore some intriguing ideas through the lenses of numerology and astrology. Where should we start?
Only a short while ago, the idea of the Dow Jones Industrial Average (DJIA) surpassing 30,000 seemed far-fetched—yet here we are, witnessing a DJIA that has exceeded this significant benchmark.
Reaching above 30,000 is undeniably impressive. Yet another noteworthy milestone lurks just ahead: the U.S. National Debt, which now stands at over $27.5 trillion. At the current rate of expenditure, it is projected to surpass a hefty $30 trillion within just nine months.
Interestingly, the national debt actually crossed the $30 trillion threshold long ago; in truth, it is approximately 568% higher when factoring in current unfunded liabilities, such as Social Security and Medicare, which exceed $156.2 trillion.
When combined, the national debt and unfunded liabilities amount to a staggering $183.7 trillion. This figure is so vast that it defies easy understanding. Therefore, for today’s exploration, we’ll narrow our focus to the DJIA at 30,000 and the U.S. National Debt at $30 trillion.
Arbitrary Data Points
The connection between the DJIA and the national debt remains somewhat elusive. Although it’s difficult to pinpoint their relationship, there’s an intuitive sense that these milestones represent a significant transformation.
Is the DJIA reaching 30,000 and the national debt exceeding $30 trillion mere coincidence, or is there a deeper correlation? And if so, does this correlation imply causation?
While various avenues exist for diving into these questions, we’ll take the path of least resistance. Instead of a rigorous statistical analysis, we’ll draw one simple conclusion based on inference and conjecture.
Looking back, we can identify curious interconnections between significant data points. In autumn 1982, the DJIA first surpassed the 1,000 mark. Though it had risen above this level before, 1982 was the last instance of the DJIA climbing above 1,000 without subsequently falling back.
Coincidentally, 1982 also marked the first time the U.S. National Debt exceeded $1 trillion. Since then, the national debt has generally followed an exponential trajectory, with a brief pause in the late 1990s, before sharply increasing since 2009.
In contrast, the DJIA’s journey from 1,000 to 30,000 has been less straightforward, punctuated by various sell-offs. What can we make of this?
A statistician might analyze the figures and arrive at the conclusion that any correlation is too weak to imply causation, perhaps even graphing them to illustrate their point. Yet, a numerologist might perceive a more profound relationship within these rounded figures, suggesting a connection that could extend into the future. Who holds the correct perspective?
What To Do When The Planets Diverge
In examining the transition from DJIA 1,000 to DJIA 30,000 alongside the rise of the U.S. National Debt from $1 trillion to $30 trillion, certain patterns become clear: moments of alignment and marked divergence.
For example, in March 2009, the DJIA fell to around 6,700, while the U.S. National Debt had already exceeded $10 trillion. This raises the question of whether we’re on the brink of another divergence.
Drawing from a mix of subjective reflection, numerology, astrology, and basic statistics, it appears that we may soon experience a scenario where the U.S. National Debt continues its upward trend, potentially while the DJIA plummets by 15,000 points or more.
This insight can be stowed away for future consideration. But remember, today is Christmas! This is a time for joy, celebration, and merriment—not worries about finances.
Like the stock market’s performance over the past decade, seize the moment and make the most of this festive season, for alignment may not be favorable come next year.
So, deck the halls! Enjoy another eggnog or piece of peppermint bark. Show your support to the bell-ringing Salvation Army lady with a wink and a crisp bill—before cash becomes a relic of the past.
Of course, as always, engage in all festivities safely and sensibly. In essence, consider moving away from the DJIA—perhaps the bonds as well.
On that upbeat note, we’ll draw our reflections to a close.
Wishing you a Merry Christmas!
MN Gordon
for Economic Prism
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