Tesla (TSLA): Things Have Been Going Wrong For A Long Time

Peter Schiff was recently on RT.com discussing Tesla (TSLA) stock:

"Things have been going a lot wrong for a long time at Tesla when it comes to profitability. So, it's really not about one quarter it's about whether or not you're gonna make the leap of faith that Tesla is actually going to make a profitable company out of its business. Right now it's losing a lot of money and what has to happen to justify the current share price is that they have to make a profit but they have to do it at a large enough scale to justify this valuation and I think that's going to be a very difficult thing for Tesla."

GDP Data: Don't Rule Out A 2019 Recession

Inflation Numbers: Something Does Not Add Up!

The government wants us to believe that the annualized increase in the cost of living in Q1 2019 was just 0.9%. Yet the price of oil rose by an annualized rate of over 130% during that quarter! Either the price of everything else plunged, or something doesn't add up!

Bond Market, Gold & The Federal Reserve

The bond market and gold are rising, as the US Dollar falls, because the supposed collapse in the inflation rate in Q1 despite a 130% annualized rise in the price of oil, gives the Federal Reserve yet another excuse to remain patient on future interest rate hikes.

Interest Rate Cuts, Return to QE

If oil prices keep rising, maybe inflation will fall so much that the dreaded deflation risk will rear its ugly head. Then Trump may get his wish, as the Federal Reserve will have an excuse to cut interest rates and return to QE!

Don't Rule Out A 2019 Recession  

The near 17% drop in Q1 energy prices, despite a 33% surge in oil prices, resulted from the sharp fall in oil prices the previous quarter. This, plus one-off positive contributions from inventories and trade, will likely be reversed in Q2. Don't rule out a 2019 recession.

India Is Buying Gold

India has joined countries like Russia and China buying gold in an attempt to diversify reserves away from the US Dollar:

"The Reserve Bank of India has jumped on the gold bandwagon. Since December 2017, the Indian central bank has added 50.4 tons of gold to its reserves. India bought 8.2 tons of gold in January and February of this year and analysts project that pace to pick up. India’s gold reserves currently stand at a record high of almost 609 tons, according to data from the IMF."

Related trading tickers: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ)

Russia Continues Buying Gold

The Russians bought more gold last month as they continue to try to minimize exposure to the US Dollar.

"The Central Bank of Russia added another 18.7 tons of gold to its stash in March according to a press release last week. This boosts the country’s gold reserves to 2, 167.9 tons or 69,700,000 ounces. Gold now makes up about 18% of the Russian central bank’s reserves."
- in Schiff Gold

“Vladimir Putin’s quest to break Russia’s reliance on the US dollar has set off a literal gold rush.” 
- in Bloomberg

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ)

Crude Oil Will Put Pressure On The U.S. Economy

This is going to add additional downward pressure to the US Economy while putting upward pressure on the measured rates of inflation and maybe putting more pressure on the Federal Reserve to raise interest rates which is the last thing Donald Trump wants the Federal Reserve to do.

Gasoline Prices Are Going To Keep Rising

Look at the retail sales numbers we just got. The strongest part of it was gasoline because consumers are paying higher prices for gas. Gas prices are gonna continue to rise. 

Crude Oil Is Heading Higher

Crude Oil prices are heading higher says Peter Schiff.

Topics: Crude Oil market, Iran sanctions
Related trading tickers: Energy Select Sector SPDR ETF (XLE), United States Oil Fund LP ETF (USO)

The Banks Do Not Want The Return Of The Gold Standard

All the CEOs of the bailed out banks testifying before Congress don't want to end the Federal Reserve or return to a gold standard. Under a gold standard no future bank bailouts are possible. The Federal Reserve protects bankers from suffering the market consequences of their mistakes.

Printing Money Is Taxation In Another Form

“Printing money is merely taxation in another form. Rather than robbing citizens of their money, governments robs their money of its purchasing power.”

- Peter Schiff

Stock Market: The Trump Put

It's not just the Powell Put. The stock market also benefits from the Trump Put. Anytime the market falls Trump simply tweets something positive about a pending trade deal with China. Since Trump can't play this card if an actual deal is made, his incentive is not to make one!

Related trading tickers: SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), SPDR Dow Jones Industrial Average ETF (DIA)

The Real Reason Why The Fed Cannot Raise Rates

The truth is they can't raise interest rates because we have too much debt we can't afford right a normal rate of interest. Because we have an abnormal amount of debt they can't shrink the balance sheet, the deficits are too high and if they did shrink the balance sheet it would put too much upward pressure on long-term interest and it would collapse the bubble.