Photo: Setting the standard: China has eschewed US Treasury bonds in favour of industrial metals, especially copper Photo: Getty Images From The Telegraph:
Hard money enthusiasts have long watched for signs that China is switching its foreign reserves from US Treasury bonds into gold bullion. They may have been eyeing the wrong metal.
China's State Reserves Bureau (SRB) has instead been buying copper and other industrial metals over recent months on a scale that appears to go beyond the usual rebuilding of stocks for commercial reasons.
Nobu Su, head of Taiwan's TMT group, which ships commodities to China, said Beijing is trying to extricate itself from dollar dependency as fast as it can.
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My Comment: Copper has multiple industrial and commercial uses .... you can never lose on copper. But China is clearly moving away from being the major purchaser of U.S. debt. These actions will have a profound medium to long term impact on the financial health of our economy ... and in turn the status of U.S. power to shape and influence world events.
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