Ok folks, the deflation we’ve been tracking is gathering steam. We're now seeing new signs on a daily basis.
Today oil tested its old weekly lows and copper broke to a multi-year low. Both are signs of deep distress in the world generally, and China specifically.
Speaking of which, despite putting a lot of reputation and political capital on the line, not to mention hundreds of billions of dollars, the Chinese stock market has resisted all of these interventionist efforts and dropped five out of the last seven trading days. Not a good sign, obviously.
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The Chinese authorities are discovering that bubble rescues are hard to engineer, and are going to wish that they had not allowed their bubble to blow in the first place. Not that they had much choice, because the prior housing bubble they had blown is well and truly over and they needed another one to keep things going.
So equities fit the bill, and the Chinese authorities said not word one about the massive climb in equity prices they engineered. Dead silence.
Same as with the housing bubble. Which means that so-called capitalistic and communistic economies are exactly the same in the habits of their political leaders and monetary authorities: bubbles inflating are good, and bubbles deflating are bad.
But things are now actually getting pretty serious. Dr. Copper, with a PhD in economics because he can always foretell a coming slowdown, is sending a very serious signal:
(Source)
The arrows show that we can say that copper is hitting a six year low if we date its last matching price to the 2009 rebound.
by kugscheese 
