Prepare for the $100 tomato. Ever since Wednesday, the inflation boogeyman has been all the rage. Following nearly a decade of deflationary pressures and fucked up central bank policy — which has constrained growth, the market in its infinite wisdom has declared Trump to be a great friend of economic prosperity and growth. As such, the price of copper has risen nearly 20 percent — its biggest move ever.
So how does any of this make sense? Are we going to build the Mexican wall out of pure copper?
Building construction is the main driver for copper and China represents more than a third of that demand.
In other words, the spastic retards bidding up copper now are betting that Trump will cause a construction boom in CHINA! Really?
As a side note, the actual winner in all of this is Chile — a country that represents 35% of the global supply of copper. Interestingly, the Chile ETF, ECH, is down 1.5% for the week.
Great job Wall Street!
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Will we have a wall made of copper?
I also don’t get why gold and precious metals got hit so hard if inflation is coming.
Maybe a shake out before the rocket ship launches?
Or maybe those who were betting on disaster are just unwinding their equity shorts and precious metal positions.
Got it. Thank you. The ferocity of the move left me speechless.
Dr. Copper has joined the Trump Transition Team.
interest rates rising means gold becomes more expensive to hold. plus risk off due to rising interest rates will hit everything in sight. China is the primary source of deflation and misery and Trump wants local production then prices are going up big time.
Soupbone, I like your chess board view explanation.
Precisely. Trump doesn’t want no cheap Mexican labor making things cheaper for Americans. He wants people to have to pay $100 for a tomato since it’s being picked by hand by an American making $100/hr.
What happens when you bite off the hand that feeds you? China and Mexico make everything we consume. If we raise the price of goods coming from there through tariffs, we’ll create good ole American jobs…. Unfortunately, the downside is that American labor costs much more. Not to worry though, Trump hates labor and will strip the common man of all labor rights to keep prices down.
The big question for The Donald in a few years will be. Thanks for getting me my job back, but now I work 80 hours a week and can’t afford to buy food.
Okay, then point me where the middle is. A criminal Clinton victory?
Fly, are you still in your long gold-short FCX positions?
Don’t forget the sunken ark also.