The FT reported over the weekend that the price of copper had fallen below $7,000 a tonne and was expected to go lower. In March it was over $10,000.
This matters for three reasons. First, copper is a strong economic indicator: it’s price falling is a sign of slowing economic activity, and this is not just a fall but a positive collapse.
Second, this fall suggests that the panic buying that has created so much of our inflation (exactly equivalent to the April 2020 loo palate crisis, but with bigger consequences) is fading.
Third, copper is not alone. Prices are falling over a wide range of commodities, including energy in some cases.
Yeah, because everyone thinks that central banks are going to raise interest rates thereby slowing the economy.
“loo palate crisis”: that’s an insight into his habits that I wish I hadn’t read.
I suppose he is unwilling to admit that the Chinese lockdowns might have a role to play here
Dearieme
You’ve heard of “flushing your palate” haven’t you
So he is now a commodities specialist as well? Is there no end to his talents??
I hadn’t realised there were connoisseurs of toilet bowl water. Things one can learn on websites!
Largest price increases are in energy and food. By and large these are the only goods that don’t need copper. So if price increases are caused by people panic buying electricity and bananas in order to stockpile them (?!) then this means less copper is going to be used to produce the things that they’re now going to buy instead. Of course.
Or, people are prioritising food and fuel, so have less money left to spend on manufactured goods and buildings.
Everything’s crapping out. Only purchase I’ve done lately was copper (COPA) few weeks ago when I took some off Shell.
Dominic Frisby, damn your eyes!
Is there no end to his talents??
Dunno. I do know there’s no beginning to them.
Dennis
Candidly you appear to be a troll
That’s your last contribution here
“Is there no end to his talents??”
A bell end.
My wife works in corporate finance, and has spent the last few months advising two guys who want to sell their electronics business. She’s put them together with various VCs, none of whom have hit the magic £20 million these guys want (eight figs each for ego basically).
But a couple of them have come close – without being too specific, the best offer is around £12 million in cash, four million in stock in the newco, and a five year earnout on the rest adjusted for inflation.
The twats are seriously talking about turning it down.
Mind you, the other twats offered it.
Personally I would be diversifying that kind of money into various countries, getting as many different passports as I could, and holding tight, but plenty of people in both business and money do seem to think this is just business as normal, only a bit rougher than we’ve been used to.
Copper prices have fallen from their March peak, back to the five year average.
Clearly a sign of catastrophe caused by neo-liberal fascist economics.
Dennis
Candidly you appear to be a troll
That’s your last contribution here
And last week I posted the greatest post in the history of the internet.
Tough Crowd.
“The fall in the price of copper matters because …”
NO, all the things he claims to be a result are a *cause* of the fall in the price of copper.
What matters is that the world is entering a recession (not a collapse or copper price would have halved). The fall in the copper price is merely a symptom.
Dennis
You’re only as good as your last post….
(although I admit attempting to put your description of Murphy in the post you reference onto Wikipedia- didn’t beat the moderators sadly…)
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