Posted on 05/17/2010 1:47:21 PM PDT by blam
Now This Is A Deflationary Collapse
Joe Weisenthal and Kamelia Angelova
May. 17, 2010, 4:07 PM
Dr. Copper's prognoses for the world economy is very grim.
Even as the market managed to produce some gains, the bellwether metal got crushed today, and over the last month its taken a monster loss.
How come? Well, growth fears, a surging dollar, and perhaps a real slowdown in China to name a few things. A return to recession in Europe isn't helping much.
[snip]
(Excerpt) Read more at businessinsider.com ...
Cheap commodities as measured in U.S. dollars mean lower costs for producers of components and finished products — so for every “grim” story there’s a real silver lining in the cloud, too.
My “Buried Mayo Jar” portfollio is looking quite good.
You can make cheaply a lot of 'stuff' that people still aren't buying.
Happy news indeed.
"Why?"
"No end demand from consumers, and a double dip in housing."
Let’s not forget that copper and other commodities were artificially high due to Chinese stockpiling.
I’m pissed. I just bought 250’ of 14-2 and now it’s probably going to be cheaper.
Oh Well, I got 3 out of 4 jobs done, can knock the last one out when the spirits move me.
Is this real deflation or the lack of industrial demand?
they are not mutually exclusive.
mark
I need to dig up my old econ books...I don’t remember them really being very clear on what constitutes disenflation, deflation, etc...I’m not sure if they really had a good definition.
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