RE:RE:RE:Dr. Coppers Copper is down because of the uncertainty regarding the economy. But it is also down because the American dollar is strengthening. What happens if and when that part of the equation is removed. Let's say that there's a debt default and the Americans stop paying their bills. The dollar is trashed. How are the commodities going to be priced? If the dollar is not worth much because the Americans have defaulted then either copper shoots up in value because it is priced in dollars or it crashes because the world economy crashes. I am assuming that it's going to crash. A lot of countries will go down with the dollar because the US Tbills will be worthless. A lot of Americans will be out of work because a lot of Americans work for the state. All construction will grind to a halt because interest rates will go sky high. The American military will not be paid and no one works for free. China might seize on this opportunity to invade Taiwan leading to a possible conflict with a bankrupt US military if that is at all possible.
Now, let's assume that the US does default but only for a specific time period. In that case copper could recover and soar in value because the US dollar will depreciate. China will assume the mantle of the sole superpower. The Yuan will become the new reserve currency and copper will be priced in Yuan.