Our computer has been doing a fantastic job forecasting BREXIT, then Trump and that Hollande would not make the final round for elections in France. But why are these events even important? No it is not that Trump will save the day. He will perhaps help give the USA some breathing room. But the collapse that is underway started in Europe. It will then migrate to Japan, and finally come to the USA.

Merkel and Hollande were the pillars of Europe. Taking out BREXIT was the first leg of the stool, Hollande was the second leg of this three-legged stool holding up Europe. The collapse of confidence behind the euro is directly tied to politics. Remove Merkel, and we will begin to see how quickly Europe will unravel.

This is the Year from Political Hell. Keep in mind that CONFIDENCE underscores EVERYTHING. You accept a dollar bill for your labor only because you have the CONFIDENCE that someone else will accept it in return. All markets rest upon a seabed of CONFIDENCE. Undermine that foundation, and then the house of cards will fall. It will not fall without changing the mindset of the majority. You will never convince them with stories of fiat, money supply, or gold. Undermine their belief system, then you will see change – not before. You will NEVER convince the majority with stories of hyperinflation, quantity of money theories, or any economic theory. Once the political world changes, then there is no certainty left to support the future. Santa Claus is not there to make sure your life will be the dream. Sudden, those in the West will have to leave the same lesson of those in Russia and Eastern Europe – you just cannot count on government for anything.

Well the emails are pouring in already since our post on the upcoming French elections where our model was showing that “Clearly, the socialists are finished.” We further stated: “They made a two election come back, but that was just a reaction reaching 51.63% compared to their peak at 51.76% in 1981. This suggests they will possibly be out of the final run or this will be their very last time. The 2017 election may simply be Conservatives v FN in 2017.” We warned that our model was shaping up to be a confrontation between the Conservative candidate Francois Fillon and the FN candidate Marine Le Pen.

In what is being called a shocking surprise announcement, President Francois Hollande of France on Thursday said he would not seek a second term next year. He is so unpopular, he is stepping aside in hopes that this will resurrect the Socialist party’s chances. This is the very first time since France’s fifth Republic was created in 1958 that an incumbent president will not seek a second term.

Our computer simply looks not at opinion polls, but at the market performance and the economy. This is three for three so far. It seems to be on a roll with its political forecasting. We have the Netherlands and Germany in addition to the Italian referendum. This is a global trend rejecting politics as we have known it.