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A Hawkish Fed? Hardly

Sometimes I wonder if the Fed is just toying with the financial media and economic analysts.  The Fed’s constant threat to raise rates and unwind its balance sheet seems to be taken seriously by most commentators.  Even the few analysts I respect, like David Stockman, include the assumption the Fed will reduce its balance sheet by a few hundred billion per year. And yet,  nearly 5 years past Bernanke’s “taper speech” the Fed Funds rate has been barely lifted off the zero-bound and the Fed’s balance sheet has been reduced only  ever so slightly.  Every meeting it’s pretty much the […]

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Is Tesla Drowning In Liabilities?

Tesla must be burning cash a lot more quickly than the rate at which its operations were burning cash in the first 9 months of 2017.  Through the first three quarters, TSLA had incinerated $ 570 million, or roughly $ 2 million per day.  Its Model 3 sales are horrifically below Musk’s bold predictions. Now Tesla is going take part of its “leased” vehicle portfolio and attempt to raise $ 546 million by letting Wall St. “engineer” the lease payments into an Asset-Backed Bond (ABS) deal.  The problem with Tesla’s leases is that any of the leases issued before June […]

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The Stock Market Is Setting Up For A Historic Collapse

There is no history to suggest this is sustainable. This price move remains the most extreme technical disconnect in the $ DJIA ever.   – Northman Trader The U.S. dollar has had the worst January since 1987.  There’s a lot of reasons why the stock market crashed in October 1987, but the declining dollar was one of the primary catalysts.  The rest of the world, led by China, is methodically and patiently removing the dollar as the world’s reserve currency.  The cost for the U.S. Government to fund its rapidly expanding spending deficit is going to soar. Absent the ability to […]

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Hidden In Plain View / Eyes Wide Shut

The impending economic collapse is hidden from most. People only see a rising stock market, not the negative underlying factors that will cause the whole system to crash. – Peter Schiff The average middle class household is getting squeezed by an income that is not keeping up with the cost of living. Unfortunately, a major portion of the cost of living has become debt service. Most car buyers assume an almost insane amount of debt to buy a new car. Credit card debt is being used to make ends meet. Low-to-no down payment mortgages have funded most of the homes […]

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Housing Market Supply And Demand: Just The Facts

“Housing – people are insane if they think housing isn’t going to get crushed with rising rates. As you outline often, it’s already happening in ( NY, Den, etc. ) I live in LA and most of my friends/ coworkers are telling me how dumb I am to not jump in. I know to just stay quiet, but I think they are about to walk into a buzz saw (again).” – email from a subscriber The National Association of Realtors reports that December  existing home sales fell more than the NAR led its Wall Street lap-dogs to believe they would […]

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The Gold Cartel, Sex Scandals and GATA

The point is going up against the rich and powerful is known to be a losing proposition … for most, but not ALL, of the time, The tide has now turned when it comes to serious sexual harassment issues. The scandal took decades to surface. And, in my opinion, the same is going to be the case for the biggest financial market scandal in US history, that being the wrongful suppression of the gold/silver prices Bill Murphy’s speech at the Vancouver Resource Investment Conference is a must-read. The truth about the Central Banks and Government intervention in the precious metals […]

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Gold Set Up For Big Move This Year – What About Cryptos?

Gold and silver had a sharp run-up in the last two weeks of 2017.  However, the abrupt move in gold has been accompanied by a rapid rise in the gold futures open interest on the Comex. Furthermore, based on the last COT report the banks have dramatically increased their net short position and the hedge funds have gotten, once again, extremely net long.  I don’t like the looks of the COT report right now plus I anticipate a possible brief “relief” rally in the dollar index. But what about cryptocurrencies?  Over the past few weeks the largest and most actively […]

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“Mother Of All Blow-Offs?”

People who look for easy money invariable pay for the privilege of proving conclusively that it cannot be found on this earth. – Jesse Livermore Boeing’s stock has gone parabolic. It’s doubled since April 2017: The stock now trades at a 31x PE ratio, for whatever that’s worse. I’m sure if I went through the numbers closely, I could find numerous accounting manipulations which added a copious amount of non-cash income to BA’s numbers. BA’s revenues on a trailing 12 month basis are flat. From 2015 to 2016, its revenues declined 1.7%. On a trailing twelve month basis vs. 2016, […]

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2018 Should Be Bullish For The Precious Metals Sector

Usually I’m loathe to stick out price targets on the markets, especially gold and silver, because of the undeniable market intervention of the Central Banks – market manipulation which is blatant to the point at which it is now denied only by card-carrying idiots. Gold and silver had a sharp run-up in the last two weeks of 2017. However, the abrupt move in gold was accompanied by a rapid rise in the gold futures open interest on the Comex. The “commercial” – aka “the banks” – net short position in Comex gold futures has increased by 100,000 contracts (from 120 […]

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