Global Commodity Price Fallout . . . .

[errolanderson]

The past month has been difficult for key global commodity prices . . . .

China's brewing and worsening credit crisis has hammered global iron ore prices. Copper has plunged and crude oil experienced a 'flash crash' on Thursday night. Crude's price slide may be more to do with China credit than rising U.S. inventories.

Gold has also experienced its worst weekly price drop over 2017. Global commodity deflationary pressures has contributed to the fallout in precious metal prices (IMO).

According to U.S. media sources, gold prices are falling because the U.S. economy is doing so well and investors are flocking into the stock market. In reality, U.S. productivity continues to decline. Believe the reason gold fallout is a little deeper than this . . .

[macdon02]

Gold getting slammed due to polls showing Macron in the lead for French election?

[biglentil]

Keeping a lid on commodity prices through derivatives is one of the only tools they have left to keep inflation at bay with negative real interest rates.

[errolanderson]

Not much inflationary pressure in commodities . . . .

Iron ore plunged 7.5% on Friday and 20% over the past three (3) months. This continues to reflect burgeoning debt, slowdown in global economies and overall reduced demand for steel. Also, the lack of inflation continues to pressure gold prices (IMO).

[danny W1M]

What are you saying errolanderson,,,,,$0.54 CAD

[biglentil]

Not much inflationary pressure in commodities . . . .

Iron ore plunged 7.5% on Friday and 20% over the past three (3) months. This continues to reflect burgeoning debt, slowdown in global economies and overall reduced demand for steel. Also, the lack of inflation continues to pressure gold prices (IMO).

How about real estate Errol where a derivatives market does not exist? The futures market is 100% fixed.

[farming101]

What about Mortgage Backed Securities?

[biglentil]

What about Mortgage Backed Securities?

Seize up credit and the wheels come off.

[errolanderson]

Seize up credit and the wheels come off.

big lentil, you are so right. Seize up credit and the wheels fall off.

Posted this thread as drop in key building commodities like iron ore suggests oil
pullback is more than just rising U.S. inventories. China's credit crisis is now a huge global concern.

U.S. weak growth (under 2 percent) is only supported by U.S. government spending. The U.S. has never recovered from the Leeman moment in 2008. Now the Fed wants to unwind its 4 trillion balance sheet by selling bonds effectively pushing interest rates higher.

This will not end well . . . .