China copper smelters plan to cut output after margins fall
The output cuts underscore the industry’s struggle with a shortage of feedstocks caused by recent mine production setbacks.
Critics of central banks’ massive stimulus programs (‘quantitative easing’) are on a media blitz ahead of the G20 finance ministers’ meeting in Russia next week.
Famous commodities investor Jim Rogers says that now is the time to bet against long term US treasuries, bond market guru Bill Gross warns of ‘inflationary dragons,’ and US Congressman Ron Paul is staying on message, lambasting central banks in Europe, Japan and the US for their excessive monetary expansion.
Paul told Bloomberg today that whilst quantitative easing may be intended to stimulate growth, the policy amounts to currency debasement. This will end badly, said Paul, as public faith in fiat currency will eventually match the declining value.
Having a weak currency is tempting because it will often boosts exports, one of the main drivers of economic recovery. But having so many countries simultaneously engaged in aggressive devaluation is causing international tensions.
Developing nations, and in particular Brazil, have repeatedly voiced their concerns about expansionary monetary policy in the developed world. Many emerging economies depend on export competitiveness to sustain their development paths.
Next week, at the G20 finance ministers and central bankers meeting in Moscow, currency exchange rates and monetary policy will surely top the agenda.
