(8-25-15) As we have been consistently writing about the dark clouds gathering on the planet’s economic horizon, this latest downward trend is connected.
Now China is the precipitating catalyst in the commodities as it has been all along since it has become the largest user of commodities on the planet, specifically copper, iron, nickel steel, and aluminum.
China is the largest user of base metals on the planet, so with China’s economy deteriorating, this will be throwing a monkey wrench into the industrial metals, minerals and oil market – and it has. That monkey wrench phenomenon is spreading.
Once the monkey wrench was thrown, what was it going to affect? It would affect the other so-called emerging markets and that’s what it has done. It has affected emerging markets’ stock markets in the last 3 weeks. They’ve all been hit and some have even returned to 2009 lows, particularly Brazil, India and Russia. The so-called BRIC countries are getting hit.
They are leading the decline as they should since their economies are the most industrialized and the greatest producers of industrial commodities.