Here Comes "QE For Metals" - China's Desperate Commodity Sector Demands A State Bailout

Zero Hedge ^ | 11-25-2015 | Tyler Durden

[blam]

Tyler Durden
11/25/2015

When it comes to commodity metals, the dead cat no longer bounces.

We showed this last night in "No End In Sight For Commodity Carnage As Chinese Fear Fed Hike Blowback", a post which can be summarized with the following chart showing that at least for nickel, copper, zinc, iron ore and aluminum it will be a very unhappy holiday season:

The one-word reason for this condition: China, which as documented extensively in the past, has clammed down on its unprecedented credit creation now that its debt/GDP is well over 300% and as a result conventional industries are dying a fast and violent death. In fact, months ago we, jokingly, suggested that what China should do, now that it has scared sellers and shorters to death, is to launch QE where it matters - the commodity space.

That joke has become a reality according to Reuters, which reports that China's aluminum and nickel producers have asked Beijing to buy up surplus metal, sources said, the first coordinated effort since 2009 to revive prices suffering their worst rout since the global financial crisis.

(snip)

[palmer]

I saw a headline about negative rates in Switzerland of all places

They've had those forever. Basically you pay them to store your wealth in their currency in the hope they don't debase it. Worked for a while until they were pressured into devaluation by their exporters and by US authorities.

[blam]

"Basically you pay them to store your wealth in their currency in the hope they don't debase it."

China Planning A 20% Yuan Devaluation By Next Year?

Is China Quietly Planning A 20% Devaluation?