Copied From Danielle Park's blog 'Juggling Dynamite'.
Copper cracks
As the bankers keep assuring the world that all is well–why are government bond yields nil to negative and central banks buying up dodgy debts all over the world then?–anyway, as the bankers push the ‘America is a self-sustaining engine of global growth’ meme, Dr. Copper appears to be cracking under the weight of weak demand. Today moving below $2.50 a pound, as it did last entering the 2009 recession, secular support lies some 40% lower in the $1.50/pound range.
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Excessive monetary stimulants have killed the patient
Draghi rolled out his much threatened QE bazooka yesterday and global inflation expectations have plunged further in response. Commodities and North American yields are falling some more…
Belief in monetary magic may have felt fun while it lasted. Unfortunately after toxic injections of ‘stimulants’, global demand is now non-responsive.
Belief in monetary magic may have felt fun while it lasted. Unfortunately after toxic injections of ‘stimulants’, global demand is now non-responsive.
Click image to enlarge.
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