Analysis: China's towering metal stockpiles cast economic shadow

Comments (3)
Energyguy wrote:

Try as they may, the Chinese government will not be able to avoid a hard landing. The bubbles created in the housing and commodities markets are just too great, as supply has been artificially propped up for too long, which allowed GDP growth to seem larger than it actually is. By some calculations, China’s real GDP growth adjusted for inflation is near zero as the government may be vastly understating the actual inflaction adjustment figure. This is the beginning of the great unwinding, and it won’t be pleasant.

May 18, 2012 9:27am EDT  --  Report as abuse

When did ETF copper get downgraded from being a base metal — usually mined with lead, zinc, and silver?
Sorry, but being on the supply side of mining, versus the financial “soft” side of hard metals I am just a bit concerned about articles that suggest that yet-another-bubble (as real estate) is about to burst. Especially when writing about a strategic metal needed for China’s growing control of copper needed for their solar energy, and smart electric car dominance of the World when it come to alternative energy.

May 19, 2012 1:18pm EDT  --  Report as abuse
lnardozi wrote:

This article is just to give a plausible explanation for what is seen in satellite photos – massive stockpiles. The stockpiles don’t exist because China’s economy is cratering – they exist because China is busy spending all the dollars it has accumulated to buy commodities. Commodities for the most part retain their value and the dollar is headed right straight off a cliff sometime in the near future.

May 19, 2012 1:54pm EDT  --  Report as abuse
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