Tuesday, February 7, 2012

Collapse of Mitt Romney in Progress

Mitt Romney's candidacy is collapsing, exactly as I suggested in an earlier post. Mitt Romney's performance in the GOP Primaries and caucuses is unfolding exactly as forecast. As the polls in Missouri, Minnesota, and Colorado closed, Rick Santorum was declared the projected winner immediately after the polls closed. This falls in line with an earlier forecast made back in December 2011, indicating that success will become increasingly difficult for Mitt Romney over time during the time that the second wave of states go through the process of voting for the GOP nominee.

In spite of the nominal DJIA taking out last years high, The DJIA continues to decline from the Minor degree peak in late December 2011 in terms of real money -- the DJIA / gold ratio. The DJIA / gold ratio, known as the "real Dow", has proven to be an excellent indicator for forecasting the fortunes of people in the political arena. Here is an updated chart of the DJIA / gold ratio:

While the Primary wave [3] down count in the nominal DJIA was effectively invalidated, the scenario is still playing out strong in the DJIA / gold ratio -- the "real Dow", indicating that social mood has been deteriorating since the start of the new year. New charts with updated wave counts are coming in the future once the "lay of the land" is reasonably re-assessed. The DJIA / gold ratio is down around 85% from the peak in 1999, while the nominal DJIA is still at elevated levels -- this is indicative of governments, corporations, businesses, and even individuals getting leveraged to the hilt with credit and debt as a massive blizzard of cheap credit continues to expand an over-bloated credit bubble that is now 38 years old.

Mitt Romney's candidacy is collapsing, and the collapse has only begun. As the second wave of states in the GOP Primary go through the process of voting for their preferred candidate, Mitt Romney is expected to continue losing steam, leading to a disappointing performance in Super Tuesday. If Rick Santorun continues winning states in the coming weeks and days as the DJIA / gold ratio goes south, he will eventually be able to claim the nomination outright on Super Tuesday.

1 comment: