Kerry Lutz's--Financial Survival Network

Jeff Ferry joined us to discuss the latest China developments. Seems that things are not always what they seem. Will Trump sell-out Hong Kong? Will China crackdown on this renegade province? AT some point they're going to act and they won't be looking back. They'll be looking straight down the barrel of a gun. And watch out then, we're going to see a blood bath. How will China trade be affected? Especially with riots breaking out around the globe. Beware of economists because they're always wrong. 

There is no alternative to the stock market - TINA. None dare call it QE. Debt monetization like Zimbabwe. $14 trillion of new confetti since 2007. No wonder the market hasn’t crashed yet. But there will be a day when the recession comes and we’ll turn to central banks and they’ll be powerless. We’re already in QE and zero percent money, what else can they do? What about the fiscal side of the leger? Global debt is now $255 trillion, 330 percent of GDP and economic growth is fettered when we’re at 90 percent. Most of the debt is unproductive by nature. $1 trillion in debt during an expansion, wait for $3 trillion when the recession hits. 

It’s been 10 years now and WS keeps doing the same mistakes over and over again. I urge everyone listening to watch Margin Call and The Big Short, whether you’ve seen them before or not. The lessons of these movies are more relevant than ever. Wall Street has learned that when in doubt, get a bailout. The next one will be here before you know it. As Chris and I discuss, we need a skin-in-the-game economy, where Wall Street and its managers actually risk their own capital and risk complete financial ruin if they tank their companies and industry. Let's go back to the good old day of Wall Street General Partnerships and let's penalize CEO's by taking their accrued fortunes when they kill companies like GE. 

Everything about the Democratic Party's election show is a charade and a farce. Nothing is real, especially the candidates. They're as real as the caps on Joe Biden's teeth or the hair-plugs in his scalp. None of them are legitimate candidates. They've been put up by the elites to give the appearance of a hotly seated contest. It's simply a set-up for a brokered convention, or if Biden actually prevails, his stepping down before the convention, to enable the elites to choose the proper candidate. Either way chaos and havoc will reign. So get ready for Trump's second term. I called him in July of 2016 and I'm calling this one now. 

Poland just took back $5 billion of gold that was being held for it in London. Is that a sign of things to come? Signs of stress. Probably an important development. An unknown speculator bet $1.75 million on gold hitting $4k per ounce at a point in the future. The latest global debt number came out at over $250 trillion. Central banks are starting to act on the fear of an impending credit bust.

While our neighbor to the north has but a fraction of the US’s population, what happens there is important here as well. Miami’s real estate market is near collapse and hedge funds are taking a hit. What’s happening in Canada is no different than what’s happening here. Nonetheless, the migration from North to South continues on unabated. 

Cannabis stocks rallied for a second day last Wednesday, buoyed by a historic congressional committee passage of a bill that aims to lift the federal ban on weed, as well as strong gains for Curaleaf after it posted a narrower-than-expected third-quarter loss. 

Curaleaf’s U.S.-listed shares CURLF, +15.23% CURA, +15.07% were last up 15%, as investors shrugged off its revenue miss.

The Massachusetts-based company posted a loss of $6.8 million, or a penny a share, versus losses of $33.7 million, or 9 cents a share in the year-ago period. Revenue rose to $61.8 million from $21.4 million. Analysts polled by FactSet had expected losses of 2 cents a share on revenue of $63.6 million. 

GMP analyst Robert Fagan, who rates the stock a buy, said the numbers were “largely in line with our relatively high expectations.” The revenue number was below his estimate of $67 million. 

He highlighted positives, including good cost control, a sequential rise in sales and that vaping fears had only a mue effect on Select’s sales in the quarter. The company acquired the Select brand in May for CS1.27 billion ($954.7 million). 

Read now: As pot stocks sink, these two guys just raised $120 million to buy

Don’t miss: All the excuses cannabis companies are making for an ugly crop of earnings

MKM analyst Bill Kirk raised his fair-value estimate on the stock to C$8 from C$6 but stuck with his neutral rating on the stock. 

“Admittedly, after weak earnings reports for most of the sector, it feels nice to use positive numbers when talking about Curaleaf’s profitability,” the analyst wrote in a note. “However, we still can’t quite get there on valuation.”

Sentiment on Wednesday was boosted after the House Judiciary Committee voted in favor of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which looks to remove the federal ban on cannabis and expunge past convictions. 

Read: Aurora Cannabis stock suffers worst day in more than five years, analyst says ‘it would be fair for investors not to believe them’

The bill, which is being introduced by Committee Chairman Jerrold Nadler, a New York Democrat, passed Wednesday by a 24-10 vote in favor.

“The Senate will take its own time, but then the Senate always does,” Nadler said at a press conference on Tuesday to introduce the bill. He also aimed to sound upbeat ahead of Wednesday’s markup session for the bill: “The energy and the political pressure from the various states is growing rapidly. The Senate is subject to that, too. We’ll accomplish this.”

Also read: House panel passes bill that aims to legalize marijuana, but top Democrat concedes ‘Senate will take its own time.’

In company news, Harvest Health & Recreation Inc. HRVSF, +8.07% HARV, +6.64% became the latest cannabis company to scale back a previously agreed deal, its plan to buy cannabis licenses in Pennsylvania, Delaware, New Jersey and Maryland from CannaPharmacy Inc. in a deal originally priced at $88 million in cash. 

See now: Canada tells cannabis companies to improve disclosures of cross-holdings

Instead, the companies have agreed that Harvest Health will acquire Franklin Labs LLC, a unit of CannaPharmacy, for $26 million that will be split between $15 million in cash and an $11 million promissory note.

Harvest Chief Executive Jason Vedadi said the new terms will help the company advance its revenue and profitability goals. 

Cannabis stocks are still going through a period of retrenchment after a deep slump in stock prices. Many companies are revising deal terms, cutting costs and considering asset sales as the legal market is developing more slowly than expected and companies continue to post losses.

Harvest made the announcement as it posted a third-quarter loss of $39.1 million, or 14 cents a share, wider than the $453,000 loss posted in the year-earlier period. The company did not offer a per-share loss number for the year-earlier. Revenue rose to $33.2 million from $11.2 million. There are too few FactSet estimates to offer a reliable consensus.

In a similar move, Neptune Wellness Solutions Inc. NEPT, +1.11% NEPT, +3.30%said Wednesday it has reached a mutual agreement with Canopy Growth Corp.CGC, +13.21% WEED, +15.66% to amend and restate their cannabis-processing agreement. The parties have agreed to an amended schedule of processing volumes committed to Neptune by Canopy and to the removal of certain preferential rights granted Canopy related to Neptune’s capacity and pricing. 

“Effective June 30, 2020, volume and pricing will be negotiated between the two parties based on market conditions,” Neptune said in a statement. The 3-year term of the deal remains intact. Neptune’s U.S.-listed shares were down 3.7%, while Canopy was up about 12%.

US exports more petroleum than it imports for the first time ever in November. Stock markets hit all time highs again with DJIA up a huge 3.70%. Dollar was up 1.1%. Euro down to 1.10. Bitcoin crashed yet again to 7705. Metals were off substantially with gold closing at 1464 and silver closing at 17.0. Palladium shot up again to 1822. WTI flat. Uranium up a bigly 8.0 percent to 25.93. Pt to Pd even lower all time low of .49. Gold to silver up again to 86.1. Till next month!

According to Cyrus Parsa the greatest threat to humanity comes not from war, over population or disease. No artificial intelligence has the potential to wipe out hun=mantis and the Chinese are leading the way. The big tech companies are at the forefront as well. AI is taking over. 

George Gammon is one of the most articulate YouTubers out there. George believes that the world is insolvent, especially the United States. The US has been paying interest on interest for decades. There's a limitation to how much money can be printed. Inflation has greatly diminished the purchasing power of the dollar and the worst is yet to come.