An update on last week's claim that it's "amazing what several trillion dollars will do to goose an economy."
It is not just amazing... It is truly, absolutely stunning what several trillion dollars will do to goose an economy. For proof, have an updated look at our frequent guest, copper.
As we mentioned last week, governments around the world are injecting huge amounts of money and credit into the struggling patient known as the global economy. All this Monopoly money is driving rallies in stocks and bonds. It's also driving a stunning rise in copper... the major building block of cars, refrigerators, power lines, computers, and houses. The metal is up 97% from its February low... and up 27% in just the past month.
Any sane person must be worried about all of this "funny money" debasing their paper currency... which will push up the nominal price of commodities like copper. Again, we encourage everyone to keep an eye on the $3-per-pound area. It is around this point that the market is saying, "looks like we have a dollar problem on our hands."
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