Posted on 05/30/2021 12:51:36 PM PDT by ameribbean expat
Earlier this month, China's cabinet said Beijing would manage "unreasonable" price increases for copper, coal, steel, and iron ore.
Those commodities, of which China is the world's biggest user, have surged this year on rising demand as lockdowns to curb the Covid-19 pandemic have eased and government stimulus has boosted consumer spending globally.
Goldman said the immediate reason for the greater U.S. pricing power is the large U.S. fiscal stimulus that is absent in China, adding that China no longer benefits as much from its comparative advantage in low-cost labour and global trade.
"This ultimately creates a weaker margin setting onshore. With scarcity starting to generate shortages and higher prices, the Chinese are the first consumers to be priced out".
(Excerpt) Read more at auto.economictimes.indiatimes.com ...
Useful input, thanks for posting!
I suspect that Goldman Sachs has (and/or manages) a huge commodities futures portfolio.
If this happens China might go on an Imperial binge in order to siphon off wealth from satellite colonies to prop up a stream of bread and circuses for it’s population. Their inroads into Africa might be the first move there.
“I suspect that Goldman Sachs has (and/or manages) a huge commodities futures portfolio.”
GS manages huge portfolios of all types. That’s their job.
I have used their tips to my advantage for a long time.
I know they acquired J. Aron several years ago to have a presence in commodities, but haven’t kept track of it. Regardless, they’re still the vampire squid that talks its own book and trades its own account ahead of its customers.
All price managed economies must eventually melt down. Like their wobbling skyscrapers, the CCP's destruction is baked into the CCP's foundation.
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