Thanks for finding the article once it was released ARGT. Does anyone know how much of the world inventory of copper China consumes as a %?
Excellent post. The growing interdependency of economies will exacerbate this profound downturn as exporting intense countries that are thought to be savers, such as China, will also be hammered with a drop in demand for their products by debtor-consumer nations, and China's "massive savings" won't last nearly as long as people believe should it have to provide protracted government stimuli in an environment like this, where exports to the U.S. drop 40% and more.
Well there is NO WAY over $13 TRILLION can be ripped out of the a$$ of the US taxpayer and have it all turn out just fine! :eek:
AMTS4WA Well there is NO WAY over $13 TRILLION can be ripped out of the a$$ of the US taxpayer and have it all turn out just fine! ............................................................................. This is a correct viewpoint.... And actually one could ask this question.... What happens to prices when $30 Trillion is lost from a $70 Trillion economy.....? Who does it affect the most ? Are its effects somewhat equal on all population segments ....? Rather.... who does it affect first....? Then later....who....? .......................................................................... The remedies "so far" by the govt.... Massage the numbers..... Change the accounting rules.... Print money to replace the "lost money".... Change future rules which impose more constricted capital.... Make sure competitive currencies print money too.... Increase taxes.... None of which are real solutions.... ...................................................................... So now the question becomes at which prices does the economy want to operate....? Keep the high prices 70/70 and sell a lot less ....? Adjust prices commensurate with the $30 Trillion loss .....40/70? Some of both ? ........................................................................ So.... Just what happens to prices when 30/70's of what was....no longer exists ....? ..................................................................... So.... If the non government part of the economy downsizes to 40/70.....and the govt. upsizes from its recent size 70/70.... Just what does this mean .... for the future economy ....? It means that a high fraction of all product prices will be attributable to taxes....thus rendering US business less competitive than it could be....
I would be impressed if anyone would explain why now is worse than before, and why gov'ts today have less control than in the 30s, when the evidence is that govt central banks then were much more constrained than they are today. I don't disbelieve the statment or prediction, it's just that no one has written a post which actually contains some insight into the why(s). Of course, this forum is NOT my primary source of information, so I won't suffer if no one rises to this challenge. Then again, it's not me I'm thinking about.
History never repeats. Look at this cartoon from the the 1930's and look at the similarity with today.
If we're heading straight into a depression (and I am neither disagreeing nor agreeing with that preposition), then why would copper be expected to soar? If the planet is heading down the toilet, then copper use will plummet right alongside.
Because we're populist now. Pols have the ability and desire to pass legislation based on which way the popular wind is blowing at the moment. We're much closer to a true democracy than ever before. I wonder how many realize just how bad that is. We used to have leaders in government. Now we have followers - followers of public opinion.