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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (28884)	1/9/2004 7:04:00 AM
From: russwinter	Respond to of 206094

<derivative crunch> By that you mean a financial crunch/accident? Of course that's a scenario, when you have runaway speculative excess, caused by a US Fed that is willing to finance such excess with one percent interest rates. But, I'm not sure why that would be inconsistent with the points Xie (and I) are making about long commodity/oil/gold/foreign currency/short USD carry trades, and cleaning out US banks and deposits to do it? Xie just describes the key Chinese strain of it, and it's obvious that this extends globally in a big way now. I'll give you another example of how this is manifesting itself. The LME copper inventory has dropped from around 800 thousand tonnes in March of 2003, when Easy Al started his big imaginery deflation Bogie Man fight. As of now, that number is 421,900. metalprices.com Do you really think the world has used up that much copper since March? No, a good portion is being bought (now at $1.10/lb), and hoarded (privately inventoried) as a store of value to protect against US dollar is trash policies. Players are willing to pay incredible sums to ship this stuff around too. Baltic is a general global shipping index, not just Europe: quote.bloomberg.com