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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (20410)	1/4/2005 5:45:01 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Copper Tumbles Most in Two Months on Dollar Gains, China Sales Jan. 4 (Bloomberg) -- Copper in New York tumbled almost 5 percent, the most in two months, as gains in the dollar and declining prices in China signal reduced demand from manufacturers of wire and pipes. The plunge in prices to a two-week low came after copper closed yesterday at a 15-year high. On China's Shanghai Futures Exchange, the metal dropped 0.9 percent today, and the dollar rose against the euro. Buying by hedge funds as the dollar fell to a record against the euro helped send copper prices up 39 percent last year, the third straight annual gain. ``The dollar has been the dominating factor for copper for two years,'' said Steven Savitsky, a trader at Hanemann Trading Co. in New York. ``There's a lot of selling in China.'' Copper futures for March delivery fell 7.25 cents, or 4.9 percent, to $1.401 a pound at 8:29 a.m. on the Comex division of the New York Mercantile Exchange, the biggest drop since Oct. 13. Prices touched $1.40, the lowest since Dec. 23. A futures contract is an obligation to buy or sell a commodity at a set price by a specific date. bloomberg.com

To: RealMuLan who wrote (20410)	1/4/2005 7:25:57 PM
From: RodgerRafter	Respond to of 116555

China cut its money supply growth target for 2005 to curb inflation and slow expansion Two ways to cut money supply expansion: 1. Break the dollar peg (and replace with basket peg), so that they don't have to keep exhanging newly printed RMB for trade gap dollars. 2. Tighten credit to slow money creation by the banks. They're starting with #2 at first, but could switch to #1 if domestic growth lags their goals or if they decide it's time to crush the European and Japanese economies after the US economy melts down.