I note that China is buying copper.
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
I note that China is buying copper – Big time
It’s offloading US dollars (and it’s got trillions of ‘em) and buying, amongst other metals, principally copper.
The smart money says this is because the electric car is now about to become a reality.
And the electric car means copper will be needed in quite substantial quantities because although Aluminum is great for power distribution it’s far from ideal for use in electric motors or generators, both of which will be needed in substantial numbers if the electric car does become the car of the street.
It will be — interesting — to see the result of China offloading Dollars. The effect will of course be a substantial fall on the currency markets of the Dollar with a consequential increase in the cost of imports to the US. That’s a thing that the US will NOT enjoy. Maybe the new global standard will be the Copper Standard. One things for certain, the future of the US$ as a reserve currency is now looking very uncertain.
Maybe it’s now time for a ‘global currency unit’ based on a balance of currencies and commodities – who can tell but change there is certainly going to have to be.
Rog
