#circus

Nancy says she prays for Trump (to be impeached)

Impeachment with no Crime

It is hard to fathom how this whole impeachment circus could turn into a bigger joke by the day. It isn’t lost on the American people. From Schiff’s parody in the initial stages to Democrat Rep Katie Porter wearing a Batgirl costume to the impeachment vote or even Stanford University law professor Pamela Karlan admitting she crossed the road when she confronted Trump Tower…in what world do we live when the very people trying to take down the most powerful man in the world have to resort to such brazen unprofessionalism? It is embarrassing beyond words. How can anyone take them seriously?

Even more ridiculous was the question put forward to the sharply Democrat-leaning academics by Republican Congressman Matt Gaetz, who asked them to raise their hands if they had personal knowledge of a single fact inside the Schiff Report. None did. All these top-level university professors did was prove why education should be free because it is worth absolutely nothing.

Overnight Nancy Pelosi let rip at a reporter who questioned if she disliked Trump after a presser detailing the plan to impeach him. Even worse she said she “prays for him” every day. Undoubtedly to get God to throw him in jail (or worse).

No surprises that Trump tweeted that he looks forward to the continuation of the impeachment. Such defiance gets 24/7media coverage and outs the Trump Derangement Syndrome on display.

This has all the hallmarks of destroying the Dem’s 2020 aspirations.

Cartoon from AF Branco of https://comicallyincorrect.com/

 

Borixit

Image result for boris gif

If the EU had a mandate to force the British people toward a No Deal Brexit it couldn’t have done a better job if it had tried. The sheer arrogance and meddling from Brussels have only steeled the resolve of many UK citizens. Did it think for a moment these jabs, threats and ultimatums would enamour those residing in the world’s 5th largest economy? All they have done is given the lion cause to roar.

Britons have not been asleep at the wheel but the political classes on both sides of the English Channel have acted as though they have. A further delay to a resolution and a block of No Deal only compound the anger.

This is way more than a Brexit vote – any general election will be about the party who is prepared to execute on democracy.

Those that have done their utmost to thwart the referendum will have a target painted on their back when an election eventually arrives. The Brits don’t want to comprise and they have not forgotten the betrayal. They want out of the common market as David Cameron assured them ahead of the referendum! Brexit is Brexit.

While some might dismiss BoJo as some eccentric Etonian clown, the UK PM has torn the scab off British politics with the proroguing of parliament. For 3 years, the UK Parliament under the weak leadership of Theresa May dithered and floundered in carrying out its duty.

There is a slice of irony to see Remainers march in the streets to protest the proroguing of parliament.  They claim it is undemocratic when it was indeed they who did their utmost to block the will of the people. If we were to truly get to the bottom of the pet gripes of most Remainers, it would likely amount to having to form a line in the non-EU queue at customs of remaining members over any fear of major economic impacts.

Boris Johnson has played chicken with his own party members – who are Remainers – that they’ll be turfed from the party if they don’t back his plans. The flip side is that they will be crucified at the next election anyway. To side with Corbyn is suicide. To side with a Theresa May rehashed deal is a recipe for Torycide. An alliance with Farage is his only hope to end this mess, eventually.

Brexit Party leader Nigel Farage knows that the Tory & Brexit parties cannot split their votes as evidenced in the Peterborough by-election. With no proportional representation voting, we shouldn’t be surprised if Brexit party candidates are put up in every weak Tory constituency and where Tory Remainer incumbents currently sit. For that, Farage can negotiate a No Deal, let BoJo keep the top job and eventually convert his Brexit Party members to become a new look Tory party. Let’s face facts. The Brexit Party is predominantly about leaving the EU. If the job is done, what better way to inject much needed new blood into the Tories than get real Britons from all walks of life in parliament.

All the predictions made by Project Fear have failed to eventuate. No crashing economy or financial markets, no surge in unemployment and no British businesses gnashing teeth at what might come with life outside the EU. If anything the recent G7 looked very promising when reflecting on all of the FTAs which will probably be agreed on.

The latest trade stats between the EU and Britain make this argument pretty simple. EU members make up 7 of the Top 10 British export markets accounting for 37.4% of all trade. Top 10 account for 65.9% of trade. America accounts for £54.9bn while Germany is £36.5bn. Will British businesses fret at exporting more to America?

On the Import side, the UK matters much more to the likes of Germany at £68bn. The Dutch at £42bn and France at £28bn.

In short of the UK ‘s Top 10 importing nations, 8 are EU members. The Top 10 account for 65.7% of the total. Those 8 EU nations make up 48.1% of the total imports into the UK. On what earth would these Europeans seek to cut off their noses to spite their face? 7.13% of Germany‘s exports end up in Blighty.

One might argue that 10% of all UK exports end up in Germany Germany is the UK’s #1 importer and Germany is the #2 destination for British exports. For Germany, the UK ranks #11 importer and #3 export nation. Angela Merkel is not going to throw away a 1% GDP equivalent trade surplus in an economy in retreat. Not going to happen.

The behaviour of the EU has been so predictable. Recall Theresa May’s initial plan took the EU cabal 45 minutes to approve. That ought to have told everyone what a total dud for the UK it would be. How could we forget Emmanuel Macron imposing an October 31 deadline to have BoJo prorogue parliament and have the little Frenchman pull back his Napoleonic bravado seeing that the threat meant the EU had to throw more spanners in the works.

The British aren’t stupid. They didn’t get duped in 2016 by Brexit buses carrying slogans. 17.4mn wanted out. The taunts that people like Trump and Putin were Leavers and Obama and Trudeau were Remainers had the opposite of intended effect. The left tried to use the same tactics in the recent state elections in Germany. They used the idea of Nazism to shame people not to vote for the AfD in the Saxony election. Unfortunately, even malleable 18-29yo voters put the nationalist party top. If a second referendum were held, Leave would win by an even bigger margin.

If Jeremy Corbyn ever wanted to prosecute a case for No Deal he only had to do the obvious – make reference to Trump. True to form, he did. Does he honestly believe that signing a free trade agreement with the US would be a bad thing? Would British consumers and industry truly shun 25% of the global economy which would lower the cost of goods and services?

Corbyn promised to leave the EU at the last election but has since openly become a turncoat and proclaimed he will do his utmost to prosecute remain. At least he has finally become honest.

Let us not forget the facts of the referendum:

Leave vs Remain

Votes – 17.4m vs 16.1m

Constituencies – 406 vs 242

Labour Constituencies – 148 vs 84 (Does Corbyn honestly believe they’ve flipped back?)

Tory Constituencies – 247 vs 80 (Does BoJo really fear the remainers in the ranks?)

Regions – 9 vs 3

MPs – 160 vs 486

When The Guardian and the BBC are in full flight with attacks on BoJo we should take much comfort that their greatest fears will eventually be realised. The media hysteria on the risks of a general election. Australia’s own ABC has written that could Boris Johnson be the UK’s shortest-serving PM?

Theresa May called a snap election when she didn’t need to. She lost her outright majority because she overlooked the fact that the electorate was sick and tired of voting. It was stupid to do so. She was punished for it.

This time, Boris Johnson knows that the electorate is screaming to boot out those that have betrayed the people. Farage smashed the EU elections after only 6 weeks after forming the Brexit Party. His popularity is better than the Tories. Boris can’t be blind to this. Neither are the remainers in his party who are fighting tooth and nail to prevent it.

Yet can he the media stir up enough fake polls to get the 2/3rds majority to call an early election?

Prolonging this outcome only means the peons are busy sharpening their pitchforks so best work to side with the angry mob.

The Ringling Sisters

What a clown show. All four Democrat representatives held a press conference where they made themselves out as helpless, fragile victims. It was all about identity and zero about substance. If they wish to stop division in America they sure have an odd way of showing it.

Isn’t it amazing that in a country supposedly so divided, it still afforded the opportunity for these four minorities to be democratically elected? Surely if it is the racist cesspit they make it out to be there is no chance in hell they’d be where they are today? They’d be stuck under the jackboot of the white supremacists.

Of course anything Trump says is automatically branded racist, bigoted, homophobic, xenophobic or any other form of outrage. Poor old Nancy Pelosi got a taste of being labeled racist last week from Alexandria Ocasio-Cortez”s (AOC) chief of staff. Pelosi was having none of it. One of the few times CM has agreed with her. The left is now eating its own.

To take President Trump at his word on the White House lawn – ” if you don’t like our country, leave!” He followed it up with “you’re always welcome back.” Why didn’t the press speak to the whole context? Is it racist to say to people who seem to hate America to leave and live somewhere they’ll be happier?

CM agrees with the sentiment. If people want to firebomb ICE facilities in one border area and hoist the Mexican flag at another on US soil in place of Old Glory, why not leave? If they hate their country that much to do such things, why not move to where they think it is ideal? Perhaps the 100,000s of thousands of people being processed for being illegal immigrants speaks volumes of where people prefer to live. These people just have to open their eyes instead of howl at the moon. They have a democratic choice to turf this supposed dictator next year. If they don’t win, accept not enough think like them.

As former ICE Director Thomas Homan said to AOC, if people want to be processed as asylum seekers they should go to a proper border and go through the legal steps. They’re simply not doing that, most likely because they don’t have reasonable refugee claims as their countries are democracies not at war. They are seeking more favorable economic conditions. Aspirational asylum seekers.

If AOC wants to trash Homan and get proven completely wrong should we not question her incompetence as a lawmaker?

Do we take the words of Rep Rashida Tlaib, “we’re gonna impeach the Motherf*cker” In her victory speech as the type of conduct that invites unity with the people?

Does Rep Ilhan Omar think tweeting that Trump is a “white nationalist” will stop division, heal wounds and cause his base come around? Coming from one who had to walk back her anti-Israel stance she’s hardly speaking from high ground.

How about Congresswoman Ayanna Pressley who said, “We don’t need any more brown faces that don’t want to be a brown voice. We don’t need black faces that don’t want to be a black voice. We don’t need Muslims that don’t want to be a Muslim voice. We don’t need queers that don’t want to be a queer voice.”

So if one strays from Pressley’s predetermined definition of identity – because they wish to be thought of as individuals – are they betraying their roots? How does one create unity with that type of ridiculous thinking? How dare one aspire to not letting stereotypes prevent them succeed.

Of course leftist heads will explode after reading this. While Trunp ‘s tweets are rarely tactful or polite, if these Democrats wish to unite a country, they need a new playbook. Americans are growing sick and tired of the constant leftist drone.

All four are lawmakers. If they can’t prosecute a sounder argument than moping at a press conference what hope have they got? Perhaps taking his words at face value and doing something about it instead of feeling so oppressed in a country that has provided a platform to change what they don’t like. Maybe they should look to the disunity within their own party. They’ll have another 5 years at least to work that out.

Greatest Corporate Showman on Earth

Tesla’s 1Q 2019 results were dreadful. CM has long held that Tesla is a basket case. The ever charismatic Elon Musk is trying to fan the flames of his company with dying embers. The question is where do we start on this diabolical 1Q report?

1. Musk started off with cash to speak to solvency. Tesla talks to $2.2bn in cash and equivalents. Down $1.5b, partly due to a $920m convertible repayment. Don’t forget Tesla has $6.5bn in recourse debt and $3.5bn in non-recourse debt. It has payables and accrued liabilities of another $5.5bn offset with receivables of just over $1bn.

2. Model S/X deliveries fell from 21,067 in 1Q 2018 to 12,091 in 1Q 2019. That’s -56% at the high margin premium car end. Musk claimed it was due to demand pull forward with a reduction in tax credits. Well he just proved that without credits, demand suffers appreciably.

Model 3 production was 3% higher on the quarter but deliveries were 20% lower. Note customer deposits total $768m, marginally down on the previous quarter. If Tesla starts to implode, customers have a right to get those credits back. Residual values aren’t holding as we discuss in pt.5.

3. Solar deployed -38% year on year

4. (Battery) Storage deployed -39%YoY

5. CM made it clear in point 11 of the 30 reasons why Tesla will be a bug on a windshield report,

The Tesla Residual Value Guarantee, while well intentioned carried risks that crucified the leasing arms of the Big 3. After the tech bubble collapsed at the turn of the century, do you remember the ‘Keep America Rolling’ programme, which was all about free financing for five years? While sales were helped along nicely, the reality was it stored up pain…Goldberg & Hegde’s Residual Value Risk and Insurance study in 2009 suggested on average 92% of cars returned to leasing companies recorded losses on return of up to 12%. Any company can guarantee the price of its used product in theory, the question is whether used car buyers will be willing to pay for it. Sadly Tesla does not get a say in what the consumer will be willing to pay.”

In the 1Q 2019 result, Musk admits that Tesla suffered $121m impairment on residual value guarantees (RVG). Is it any wonder they stopped this scheme. Now it’s payback time. There are $480mn worth of RVGs still on the balance sheet that are unlikely to have been marked to market values.

6. Level 5 autonomous driving is a pipe dream in the near term. 20+ years away. A fleet of Tesla taxis is an even bigger thought bubble. Regulation will put that on the back burner. The current level 2 systems have already shown significant short comings given the numerous beta testing deaths at the wheel of the Tesla auto pilot.

7. Musk is doing a stealth cash raise by putting a time limit on auto pilot upgrades. The question is when will the next cap raise come. His noise around Tesla taxis, Level 5 autonomous systems, Model Y all speak to the snake oil promises that he needs to distract investors from what is clearly going on.

8. His public spat with his biggest supplier, Panasonic, will not end well. Suppliers have to be on board with production expansion. Panasonic is cooling off its relationship. Musk publicly slapped the Japanese battery maker. It doesn’t augur well for the rest of the supply chain either to see these ructions

Peter DeLorenzo wrote the following with respect to Musk,

That this latest charade from Musk is yet another desperate act in an attempt at saving his floundering company is obvious. Where it differs from other Muskian braggadocio is the fact that he is insisting that his AV technology is safe for mass application and consumption. Sorry to disappoint all of the St. Elon acolytes out there, but this is the insane part…

…Unleashing a fleet of zombie Teslas on the streets of America curated by a notorious nanosecond-attention-span personality such as Musk is the quintessential definition of flat-out crazy. You can’t even squint hard enough to suggest that this is, in some way, shape, or form, rational thought. It’s a case of an intermittently brilliant mind that has wandered over the line into the Abyss of Darkness. A dangerous mind that is so obsessed with pushing his perpetually sinking car company into some sort of elevated stratosphere that he is willing to treat real people as so much collateral damage...

This country is 25 years away – at least – from widespread adoption of autonomous vehicles. Yes, there will be scaled deployment in limited, commercial applications primarily in urban centers over the next two decades, but driverless Teslas careening around less than two years from now? It is a recipe for disaster the likes of which simply defies calculation.”

All the reasons CM has disliked Tesla remain. It is so chronically overvalued. This stock will be lucky to be $100 by year end. Sadly the economy is slowing meaning it will be tougher to compete with more competition launching this year. China may give cause for some future hope but don’t bet on it.

The more Musk talks, the more desperate he is. Don’t forget he is not learning from SEC requests to lay off Twitter. His guidance in 1Q is lower than recent tweets suggesting appreciably higher targets. Tesla is a time bomb.