Hurt So Good? Copper Down -27% Since March 3rd, Bitcoin Down -70% Since Nov ’21 (Is The Fed Killing Off The Economy Or Just Removing “Free Money”?)

Confounded Interest ^ | 07/11/2022 | Anthony B. Sanders

[Browns Ultra Fan]

In the court of The Copper King!

Copper, one of the economic measures of a growing economy, is down -27% since March 3, 2022 as recession looks more likely.

Let’s compare copper with another famous asset, Bitcoin. Bitcoin, a cryptocurrency, is down 70% since November 9, 2021.

As I discussed yesterday, The Fed’s five-year forward breakeven inflation rate has plunged to its lowest levels under Biden as the global economy is slowing.

Notice that copper prices fit pretty well with The Fed’s 5-year breakeven inflation rate.

It looks like The Fed is killing-off the economy in their quest to tame inflation.

The Biden economy doesn’t hurt so good. It hurts bad!

[Browns Ultra Fan]

Did The Fed and Biden drive us into a recession? Queue Biden. Schumer and Pelosi wanted to spend trillions more!

[SamAdams76]

How many will get the King Crimson reference here?

[wny]

Copper has intrinsic value. Bitcoin does not.

[P.O.E.]

IIRC, “Court of the Crimson King” had a section called “Dance of the Puppets”

[poinq]

OK maybe now people will notice that there is no inflation caused by easy money. Inflation is caused by energy prices going up and government subsidies for businesses going down. Most of the government subsidies are Chinese.

Over the past year the dollar has become stronger, not weaker. Its much stronger vs. the Yen, the Euro, The Canadian Dollar, gold, Crypto, Bonds and stocks. Its only energy and everything that requires energy to produce a product or bring that product to market that is causing inflation. But printing dollars is not a cause when the dollar is going up vs. everything else.

The one and only cause of this inflation is that oil is being denied to the western world. There are now huge supplies of oil trapped in Russia, Venezuela and Iran and under our very feet. The world has so much oil now that its price in 2020 was negative. Biden’s people are trying to stop it from getting to market.

[Bernard]

Is this a conspiracy to lower the inflation calculation in Q3 in order to minimize any increase in Social Security benefits in 2023? After all, most social security payments go to American citizens who earned the benefit during their working life.

[babble-on]

Inflation is the enemy right now. Fed policy, belatedly, is addressing inflation, and that accounts for the plunging commodity prices.

[Aevery_Freeman]

Only the 21st Century Schizoid Man!

[hecticskeptic]

Saw King Crimson on tour a few years ago (2018?). Everyone was warned at the outset about taking pictures and video but toward the end of the show, some guy was taking video. Robert Fripp was so ticked off, the band didn’t come out for their encore... and thus 21st Century Schizoid Man wasn’t played.

[Organic Panic]

Geesh. Silver is dropping. $19 an ounce right now.

[Rockingham]

As a matter of economic policy, the escape from a recession prompted by monetary tightening is to reduce taxes and regulatory burdens. Such "supply side" measures generate additional goods and services that absorb excess monetary supply and reduce inflation. Under Reagan, these policies led to a dramatic economic revival and a reduction in inflation -- a combiantion that many economists in that era thought impossible.

Unfortunately, Biden's economic policies increase taxes and regulatory burdens and thereby constrain the supply side of the economy. This leaves Fed monetary tightening without any conterbalance in national economic policy, thus causing the economy to weaken as money is drawn out of the economy in order to reduce inflation. In time, the economy rebalances itself, but only after a wave of business failures and joblessness.