Save yourself a glass of wine on today’s warm summer evening and get stunned by this copper financialization scheme.
If I find some time I’ll try to comment a little more on this. It could basically solve or give interesting aspects to a lot of issues… like: The China’s Fake Growth Puzzle – was it copper other than gold – or even both? Today’s credit crunch in China. China’s current account issues. Chinese physical gold run.
We’ll be thrilled to see the size of this scheme unraveling! Or maybe we will regret – if the pessimistic voice of Tyler@Zerohedge and less so Goldman, is to become true…
Also, I find it a good time to chuckle a bit about the exact science of economics. What a fallacy to take variables like current account (im)balances in an usually unquestionable manner. Best shown when we cite macroeconomic variables with an accuracy of up to one decimal place. Find that ridiculous? See another mindblower: SNB-President Thomas Jordan’s speech about Switzerland’s current account surplus, and why it isn’t really one. – JAS