Europe a review of 2011-12


UK and sterling
I am surprised how sparse my forecasts were for the UK over this period. I suppose it was my first country and I had yet to get into the swing of matters. However I did manage to state that the signs were of continuing difficulty and I did not expect a return to a booming economy – given that     most professional economists in 2008 would have predicted a return to continuous growth by now this can be considered a success for me.

I also predicted calm on the UK currency front from spring onwards which has been the case since the Euro issue became less prominent.
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UK market
In this case my comments for late 2011 on indicated disillusionment with the market which has certainly been true. I highlighted November 2011 which was indeed one of the bigger down months.   I expected early 2012 to look a bit better but on balance, given competing aspects, I went for fluctuations throughout mid 2012 which was true and that the latter part of the year would show nothing new. In fact the last days of December have been positive with the FTSE100 passing 6000. I didn’t identify that particular spurt but I doubted any real long term positive trend.

I still do. Although there is a vogue for suggesting that equities will be back in fashion the problem is the fundamentals of equities have been destroyed over the previous decades by a combination of structural negatives and also positives which are still negatives for future growth. Of, these more in the 2013 forecasts.
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Euro
Destabilising was the word I associated with the Euro for much of 2011. Hmmm. Might I have been right on this too. I was however, hard pressed to explain the outcome of some of the very difficult astrological activity I could see for 2011-12- I wondered if the Euro would go for a peg in 2012 or if something else would shift things. I did however point out that it was all because of the Euro partners. Obviously the Euro story has been well publicised and as have the combined impact of Angela Merkel’s work and Dragi’s 2012 ECB pronouncement.

While I might have done better than I did at identifying these trends- I get marks for seeing the instability when I was writing in 2008. And it is important to note that I did not predict a breakup, unlike so many other people did in 2010-12 under a much shorter timeframe.
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Ireland
I didn’t expect things to look up for Ireland in the second half of 2011, or in 2012 with a lot of petty disruptions in the last part of 2012. There were certainly a number of protests and sit-ins. My comment regarding the year ending particularly inflamed – while Eire only continued its on-going themes, we cannot ignore the renewal of violence in NI which might be a different country but is connected through the economic strengths and weakness in the whole island.  
80%


France
I didn’t predict much new for France in 2011, just continued emphasis on the same themes without been too impacted by the external economic events. I did foresee a change in 2012 with a move into a more recessionary picture and sure enough France posted zero growth in Q1 2012 and a small contraction in Q2.As expected though the situation was not deep and indeed Q3 showed a minor recovery as I suggested. But my forecast for the end of 2012 was for a deteriorating picture and professional economists are now predicting the same position 


Amazing aren’t they these economists – took them only 4 years more to make my prediction, pretty much after the event. Sorry boys and girls but you need to revise your models and ensure you include a few stars.
90%

 
Germany
My prediction for Germany was not for recessionary conditions in 2011, but I did foresee a lot of power issues. Obviously the conflict about the action to take over the Euro zone bailouts or not was the concrete outcome of these themes

In the latter part of 2011 I forecast a split between the elements of the country that were doing well and those that weren’t. Obviously what happened was the next big step in the Euro so called crisis (of words mainly), which dragged Germany in. So the two themes really were the internal positives conflicting with the external demands. Difficult to predict just how it would all play out without working with all the charts simultaneously – something I don’t have the resources to do – but of course the big banks, consultancies and academic institutions have no such excuse for not identifying this in 2008!

I struggled for similar reasons with the dichotomy evident in the aspects when I prepared my early 2012 forecasts. But I did notice the increase in Germany’s power during this time.

I expected the Germany economy to be negatively affected from around May though, and indeed it has shown some output declines since. I also thought that there may be elements trying to undermine the leadership by the autumn. Sure enough The New York Times states

By the spring of 2012, however, as a wide range of European countries sank into a double-dip recession, a rising chorus of voices challenged her approach, and a number of her allies in other countries were weakened or forced from office. Resentment of Germany became widespread.

I didn’t see a clear way out of this until the end of 2012 when there was a set of sudden positive aspects. Sure enough in December Merkel was re-elected as leader of her party with huge support. I look forward to doing the next lot of predictions for this country.
85%

 

Italy
I suggested that Italy wouldn’t be doing too badly in July-Sept 2011 and that it could be in the position of receiving external funding but under strict conditions. While not exactly true (Greece and Spain have been grabbing the actual money) it is pretty much true in principle. What is extra-ordinary is the fact that I noted ‘The Moon crosses the ascendant axis in November [2011] suggesting things have reached a turning point. Readers will know that the Italy chart have consistently shown Berlusconi’s scandals and now it predicted exactly the change of leadership to Mario Monti.   I like this chart!

I had 2012 as a surprisingly positive year for the country. I didn’t understand it when I wrote it but that is the nature of astrology – you have to go with what it says and not with your own biases.

I did mention continued restructuring of was a pretty dead economy overall, so what I was seeing was, in fact, the benefits of Monti’s presidency – the opportunity for change (as I put it Italy could ‘make use of the global crisis to do things that would not be possible alone!).

And at least they did better in the football too, even if they couldn’t beat Spain!

I expected other countries to have an impact on Italy’s economy from august 2012, and sure enough its trade balance improved substantially.

So 2012 was difficult read – Italy being in such a bad state the outcomes don’t show in GDP – the country is still in recession- but they are reflected in the future potential created by Monti’s changes.

The continued changes/another turning point that I predicted due to Jupiter’s transits however have had another outcome too. Now Monti has resigned and even though Berlusconi is not planning to run as president his re-involvement  hovers again so we'll have to see what 2013 will bring.

85% (average of 95 for 2011 and 75 for 2012)

 
Spain
My Spain forecasts for the whole crisis period were surprising mild. This is amazing for a country so badly hit by the end of the boom in 2007-8. And while Spain’s recessionary position picked up a bit in 2011, only to flounder again later, the unemployment and debt overhang remained a problem.

However what sets Spain apart is its culture. It can just take more problems without them over-spilling. And celebrate winning at football of course.

I just couldn’t see much change happening in Spain in 2011-12, with lack of conflict and apathy being the themes. However the position has been much worse than I expected- although given an unemployment rate of 25% not as catastrophic as might be anticipated.

I did see some desire to challenge in November 2011 but didn’t expect a change as a result. In fact there was a change of government on 20 November 2011.

There were protests however against austerity cuts in many major cities in the summer of 2012 and a bailout of its banks. None of which I expected would occur.

I did end my 2012 forecast with a comment on the new hard aspects. I thought that usually signified a change of leadership, though I did not expect one. In fact this aspect has manifested in the Catalan independence intentions.

So Spain, not my best effort this time. But I am sticking with the chart- I just need to remove some of my biases.

50%

 
Switzerland
The fate of the Swiss economy is tightly linked to that of the euro zone, which purchases half of all Swiss exports.

The SNB has upheld its zero-interest rate policy and conducted major market interventions to prevent further appreciation of the Swiss franc,

Mostly I didn’t predict much drama for Switzerland (let’s be honest the words drama and Switzerland are almost inimical)

However I did expect things to be trickier in the final quarter of 2011. And indeed, due to the increasingly strong Swiss Franc some major firms had to undergo cost cutting exercises, UBS was fined under the global Libor scandal and the country cut growth forecasts. There were elections too and the Chair of the central bank resigned in January 2012 following allegations about family forex deals. None of these things would be worth a mention for most countries but for Switzerland they represent real excitement don’t they?!

My forecast for 2012 was frankly rather vague. I did highlight May and August as key times but nothing stands out as significant in either of these periods. The merger of mining companies Glencore and xtrata was in the spotlight during the year although probably had no effect on the overall Swiss economic situation
60% - too vague and diff to predict the boring!

 
Russia
I expected political or economic disputes disruptions to be out in the open by mid 2011 with the potential for transformation by late September.

I expected the last half of 2011 to go relatively well and end satisfactorily and for 2012 to start in the same way. I thought that attempts at reforms etc. could over-reach in August and December but did not foresee any really bad outcomes for the whole period.

In fact, due to commodities, a rapid devaluation in 2008 and other factors, Russia has indeed had a good 18 months economically. Industrial Production growth remains one of the highest in the world, But it does depends on who you are:  as of 2011, Russia's capital, Moscow, now has the highest billionaire population of any city in the world- a positive of some sorts but with all sorts of negative corollaries. Even so, most Russians don’t worry about rent as homes were transferred to families from the state, so retail does well too. Politically there were protests against the elections starting at the end of 2011 and running for the first part of 2012. But the ruling party was returned so from their point of view it was indeed satisfactory


Politically there were protests against the elections starting at the end of 2011 and running for the first part of 2012. But the ruling party was returned so from their point of view it was indeed satisfactory
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Turkey
As well as predicting possible earthquakes (see previous review) I had already identified that Turkey would probably be affected by international events and also perhaps internal ones by the summer of 2011. I expected these, dark power struggles, to become even more important throughout the remainder of 2011 and become quite severe by 2012- culminating in a very tricky summer of 2012.

However I did not expect the economy to suffer too much – seeing the end of a 29 year cycle and beginning of a more positive new one for economic matters. I did expect some impact on some industries due to economic restrictions elsewhere.

There was another earthquake in Oct 2011 and by this time the unrest in Syria would becoming more prominent. The incidents related to this increased in 2012 to the point in October 5th when the Turkish PM said "We are not interested in war, but we're not far from it either,"

Internally there also were on-going Kurdish protests over the period including 10,000 hunger strikers in Nov 2012.

Investment in Turkey did decline due to the global crises but it is still a beacon compared to many as the economy continued to grow albeit at a lower rate and Fitch Group upgraded Turkey's credit rating to investment grade after an 18 year gap

A pretty good success rate on this one I think!
95%

 
Iceland
My predictions for Iceland did not extend past 2009. With just more of same being my expectation.

 
Greece.
Deemed not big enough to be worth forecasting by me originally, a late prediction for Greece was made after the start of the crisis. I didn’t expect any major changes in direction for the country late 2011 and early 2012, the instability would continue. And indeed the crisis kept bubbling along through this time. On 13 March 2012, the Eurozone finally backed a second Greek bailout of 130bn euros. IMF backing was also given.

After this I saw some improvement in April to June 2012. In fact the situation did settle a little after the bailout- international focus shifted to other countries’ debts. Although the elections had to be rescheduled for July in the end the pro-austerity party won. So yes, despite austerity and continued recession things were more stable.

My only other forecast was that the Uranus Mars aspects suggested no resolution to underlying dissent by the end of 2012 and unsurprisingly strikes and protests continued throughout the last quarter with the ex-finance minister resigning over a scandal relating to lists of alleged tax evaders.

The Greek sagas look like they will run for some time. We will see in the next set of forecasts.
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