Political corruption is now in the open, but politicians don’t seem bothered, figuring it will all blow over in a week or two. This corruption trend in politics is indicative of what we need in place to shift the CONFIDENCE from government to private come 2015.75. There hasn’t been much to write about for the markets have done pretty much what our computer had forecast – churn going nowhere into May.
Gold has been turning back down as it has lost much of its luster among broader base investors. In fact, there are people who are now starting to say that gold is dead, since it has declined in the face of monetization by the Fed and the ECB. The wider view is that the gold rally was all hype and it will never rally. This too is what I warned MUST take place BEFORE you get the low. We had to “shake the tree” and get them all out.
Everything appears on schedule to bottom with the Benchmarks. If that unfolds to the week, then this too will confirm that we have a bubble top in government that should manifest itself in the bond markets.
We can see the churning in the share market. Volatility should start to rise come the first week of June. There remains the potential for the final flight to quality if the share market declines, people will run to government bonds even at negative rates. That should create the major high in bonds.
So while it may appear there is just one depressing story after the next about corruption, hopefully you will get a taste of what is necessary to turn the cycle. This is the collapse in the trust of government. The paper currency, of what remains, says “IN GOD WE TRUST” not “IN GOVERNMENT WE TRUST” – they are not one and the same.
