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Title: We will see the fastest demand collapse in U.S. history and today’s economists won’t see it coming.
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URL Source: https://www.investmentwatchblog.com ... economists-wont-see-it-coming/
Published: Jul 1, 2022
Author: Mike Rivero
Post Date: 2022-07-01 11:36:20 by Horse
Keywords: None
Views: 49
Mac10 @SuburbanDrone · The key mistake economic forecasters are making is believing that wages are the main source of inflation. The main source of economic inflation is the asset bubble. Which is why we will see the fastest demand collapse in U.S. history and today's economists won't see it coming. (Bloomberg) — Industrial metals are on track for the worst quarter since the 2008 financial crisis as prices are pummeled by recession worries. Copper, the great economic bellwether, has ricocheted into a bear market from a record four months ago, while tin just tumbled 21% in its worst week since a 1980s crisis froze London trading for four years. It’s a dramatic reversal from the past two years, when metals surged on a wave of post-lockdown optimism, inflationary predictions and supply snarls. Now, inflation is here and supplies are still tight. But prices are plummeting as worries about a slowdown in industrial activity across major economies dovetail with slumping demand in China. For a metal like copper, its uses in everything from heavy industrial machinery to advanced electronics mean the market is tightly linked to economic shifts, and the retreat marks a signal from commodity markets that efforts to get prices back under control are having some early successes. The mood in metals has soured even as Chinese Covid-19 lockdowns start to ease, and there are signs that traders there are betting copper prices will fall further. 
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