Jim’s Mailbox

Posted at 11:18 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

More cash is required to tell us how wrong we are.

JB

Fed Injects $83BN In Liquidity As Market’s Repo Addiction Getting Worse
January 9, 2020

Two days after we reported that a disturbance may be brewing below the surface of the repo market again, after the first oversubscribed term repo in over three weeks, when on Jan 7 the Fed received $41.1BN in submissions for its $35BN two week repo, we got another indication just how strong the market’s addition to the Fed’s easy repo money has become, when moments ago the Fed announced that its latest 2-week term repo operation was also almost oversubscribed, as $34.3BN in securities ($23.3BN in TSYs, $11BN in MBS) were submitted for today’s $35 billion operation, as dealers continue to scramble to the Fed for liquidity which they are no longer using for merely “regulatory” year-end purposes (since it is no longer year-end obviously), but are instead using it to pump markets directly.

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Jim/Bill,

We all know by now the push for fake meat.   As with fake cigarettes (Vaping) and fake sugar (saccharine), it is proving to possibly be more toxic than the product they are replacing.

It is being shown that fake meat is not necessarily healthier than the real thing.

The reason I bring this up is because of the uncanny parallels between fake meat and fake gold.

Fake gold, ie:  Comex futures, ETFs like GLD, etc., do not necessarily represent a safer alternative.  In fact, they may be more toxic than the individual investor realizes.  Unfortunately, there is no FDA to protect the investor from toxic effects (not that they do such a good job anyway).

The one thing that fake gold has over fake meat is this:  UNLIMITED amounts of fake gold can be printed at will.

Real gold has its limits.

‘A partnership of that magnitude would also raise questions about whether Beyond Meat has the production capacity to serve the thousands of McDonald’s locations in North America. Howard, in Wednesday’s research note, said: “It is of note that Beyond Meat may not have enough capacity to fully supply McDonald’s nationwide at present.” ‘

CIGA Wolfgang Rech

Beyond Meat Stock Reverses As This Key Question Hangs Over Hopes For McDonald’s Deal
January 8, 2020

McDonald’s (MCD) on Wednesday said it would expand its test of a Beyond Meat (BYND) plant-based burger in Canada, a small step toward what an analyst said could send Beyond Meat stock on yet another tear higher on epic sales gains in the years ahead, even as questions remain about its ability to meet demand.

The fast-food burger giant said the test expansion, starting Jan. 14, would include 52 restaurants in Southwestern Ontario. The expanded test will last 12 weeks. McDonald’s began the initial Beyond Meat test, for 28 restaurants in the London, Ontario area, in September.

Most of the restaurants that were part of that first test will keep serving the Beyond Meat sandwich, called the P.L.T., or Plant. Lettuce. Tomato. Starting Jan. 14, the P.L.T. will sell for around 5.99 Canadian dollars, or $4.60.

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