The Stage is being set for the most dramatic political change in our lifetime; or for the young in age rather than just hart, post World War II. Angela Merkel’s party came in with absolutely historic losses in elections in Berlin. Some are claiming, such as the Mayor, this will return Nazis in Germany as the far-right Alternative for Germany (AfD) comes to power. Of course, that is rather scare tactics. The AfD is anti-immigration, but have no desire to conquer Europe. Merkel has brought Europe into total and complete chaos with her refugee crisis. Her slogan “We Can Do This” has been used against her saying yes, “We can do this, take our country back.”
I have been warning that we are entering the period of political hell. This is a surge in nationalism/isolationism that is engulfing the world. Society has been drained of its lifeblood by the socialists and regulation to the point 5% economic growth is unheard of in the West. Wait til we see the results in France. This not going to be politics as usual.
The central banks have been selling US Treasury bonds at the request of the Fed to desperately try to keep the dollar from surging. China’s holdings have dropped to the lowest since 2013 as they try to help stem the dollar advance. Nonetheless, with all the manipulation trying to reverse the trend in the dollar, all we are getting is coiling. No matter what the central banks try to manipulate, the trend is unstoppable as this political year from hell unfolds.