Posted on 04/28/2013 7:30:26 AM PDT by blam
Copper Calls The Economic Recovery BS
Economics / Global Economy
April 27, 2013 - 03:08 PM GMT
By: Graham Summers
For the last four years, the financial world has traded largely based on hope of more intervention from Central Banks.
That was and is the single driving factor of the markets. Good news was good news (it’s a recovery!) but bad news was even better (the Fed will have to print more money!) as far as stocks were concerned.
However, against this backdrop several issues began to develop. The single most important one was Copper, which has a great record of anticipating real economic growth:
Note that Copper signified an end to the economic “recovery” story back in 2011. Since that time, it’s been in decline. In fact, it’s just taken out its “recovery’ trendline dating back to 2009.
This signifies that the world economy is slowing. It tells us point blank that things are not well in the world.
Just as importantly, it shows that the claims that QE and Central Bank money printing generate real economic growth are false.
Copper can’t fudge statistics to meet political agendas. It doesn’t lie under oath. It moves based on supply and demand. And demand has been falling since 2011.
Investors take note, the markets are sending multiple signals that things are not going well in the world. Copper is forecasting a nasty summer.
I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.
As I write this, all of them are SOARING.
It ain't happy presently!
When the heck is the price of ammo going to come down?
It'll be when people feel that their government isn't plotting against them.
Probably not in my lifetime.
with all the ammo mfg's running full tilt i'd think copper would be doing better than that... but i guess that is a small sector of the overall market
“Not in my lifetime”.
There’s several ways of interpreting that ... none of them good.
I would guess so too. I would think wiring, tubing and sheets are the primary forms used for most capital goods production and probably why coppper can be a reliable indicator. I would think housing, automobiles, electric motors, transformers, electronic devices and switch gear are the biggest consumers and if they are down, copper reflects what those industries are doing. The article makes a lot of sense from that standpoint and if production of capital goods is down, future production of everything will be down.
something wicked this way comes...
For Most Americans -- Your biggest assets are Social Security
Medicare Commentary: Elites want to cut them because they don’t need them.
If yo are one of the 15% that sill have a "pension," mostly made obsolete by "reform" legislation over the last 25 years -- as the elites consolidated their total control over everything. Your 401(k) has already been made non-existent by the Fed's program of gradual monetary inflation. Elites want everybody BK and dependent on government handouts.
They have turn the US into a sham based on Russia, China and Nazi Germany.
Goldbug ping.
A pittance.
Last time I looked at the copper market in detail, the major buyers of copper went like this:
- electrical wire
- plumbing & tubing
- motor windings
Then we move down to brass and other alloys - which have historically been about 20% of copper consumption in the US in total, and out of all that alloy consumption, you’ll find copper consumption in ammo, which will be pretty small by comparison.
The industrial market segment is starting into a for-real slowdown, and copper is showing us this in the prices. The real elephant in the room is China.
People have no property right or expectation of a payout of Social Security as they would in a pension.
Flemming v. Nestor, US Supreme Court, 1960.
didn't they buy an almost ungodly amount of physical copper(and a few other things) over the last few years afraid the price was going to go up?
Yes, they bought huge amounts of “cathode” - barely refined copper. They stockpiled a huge amount of it...
In the meantime, new events are afoot:
US health leader warns of human-to-human H7N9 bird flu
Please pass the word . . .
I still have all my supplies from the H5N1 pandemic, ahem.
Next Country to Collapse Is Not Europe !
All my economic predictions seem to come true just like thehousing bubble . . . LOL !
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