A fertilizer producer in north China default on bond payments has demonstrates a positive aspect that the state governments are not so eager to bail-out failed companies. This will be a positive step forward in transforming China into a major capital market. For now, it is still not ready for prime time.

Of course many are touting this as a reason to buy gold. It seems they will distort anything to justify a buy. Gold will rise on a sustainable basis when the GENERAL PUBLIC see that government is in trouble, not companies per se. That is starting to materialize in Europe and the election is starting to expose the corruption in the United States as “super delegates” hand Hillary the nomination nullifying the vote of the people. Bernie wants to keep going and on this issue he is correct. You cannot pretend this is a democracy and then do everything in your power to make sure the people really choose nothing.

That is the key to the future. When everyone wakes up and simply say – OMG. This is a joke! The 2016 election may lead to a real political revolution by 2018 overturning Congress entirely.