Posted on 01/11/2016 5:06:17 PM PST by SkyPilot
The Financial Crisis Of 2016 Rolls On – China, Oil, Copper And Junk Bonds All Continue To Crash
Never before have we seen a year start like this. On Monday, Chinese stocks crashed once again. The Shanghai Composite Index plummeted another 5.29 percent, and this comes on the heels of two historic single day crashes last week. All of this chaos over in China is one of the factors that continues to push commodity prices even lower. Today the price of copper fell another 2.40 percent to $1.97, and the price of oil continued to implode. At one point the price of U.S. oil plunged all the way down to $30.99 a barrel before rebounding just a little bit. As I write this article, oil is down a total of 6.12 percent for the day and is currently sitting at $31.13. U.S. stocks were mixed on Monday, but it is important to note that the Russell 2000 did officially enter bear market territory. This is yet another confirmation of what I was talking about yesterday. And junk bonds continue to plummet. As I write this, JNK is down to 33.42. All of these numbers are huge red flags that are screaming that big trouble is ahead. Unfortunately, the mainstream media continues to insist that there is absolutely nothing to be concerned about.
A little over a year ago, I wrote an article that explained that anyone that believed that low oil prices were good for the economy was “crazy“. At the time, many people really didn’t understand what I was trying to communicate, but now it is becoming exceedingly clear.
(Excerpt) Read more at theeconomiccollapseblog.com ...
Silver’s under $14/ounce
It’s not a cause, it’s an effect.
Copper’s down. Should have sold all my pennies last week.
It irritates me to no end that everyone assumes this “recovery” actually happened.
There was no recovery, they just stopped being able to lie about things.
These raw material prices are more to do with China than us. They were building like gangbusters for a decade, but there are only so many extra cities they need.
Pennies are zinc, nickels are copper and nickel.
Pennies are not made of copper. They have not been for decades.
No wonder I’ve been having small fires in my fuse box lately.....
While most of the cars manufactured in China are sold within China, exports reached 814,300 units in 2011.[4]...In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history.[8] In 2014, total vehicles production in China reached 23.720 million, accounting for 26% of global automotive production.[9]
It was a joke
Oh, a lot of people still think they’re copper.
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