Who's brewing copper kettle mania?

"No, this is predominantly private buying, or, if you will, diversification. It is financed by the Chinese banks, the conduits for much of the official stimulus spending. Why can't the government control what the banking system is doing? Because if you want to use the cheap stimulus money to make a copper bet, you do not call it speculation on the loan application. You tell the bank that you want to make transformers, or water heaters, and this is necessary raw material. Until the transformers or heaters are made, or not made, the government cannot distinguish the speculative buyer."

Continue Reading...