Commodity Futures Plunge Following China Growth Downgrade

Tyler Durden's picture

Less than a month ago we warned that the Chinese commodity bubble 2.0 was bursting as speculative volume had exploded relative to open interest and exchanges had begun (after unreal surges in prices) to crackdown on the speculation. The carnage continued and over the last few days has bloodbath'd even more as China warns that it will miss its growth targets.

Spot The Odd One Out...

  • Zinc -22%
  • Iron Ore -20%
  • Steel Rebar -20%
  • China Coking Coal -25%
  • Copper -13%
  • Bitcoin +18%

 

It appears as China housing bubble pops, commodity bubble pops, and credit-fueled growth bubble pops... there is only one place left for Chinese trend-followers to flee to - Bitcoin.

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HokumYTrader's picture

But everything's great!

-- Donald J Trump

CJgipper's picture

He said that the dow is a huge bubble but people Ave hope in the private economy because he was elected.  I think that's dead on.  That, and Chinese and Europeans are buting anything they can to get away from yuan and euros.

stacking12321's picture

heeeey, why is that last chart on the end going up in green?

hmm, bitcoin, huh?

i'll have to look into that!

 

aminorex's picture

Bitcoin is all well and good until they start seizing coins traced to illicit uses - it just too trackable.  The best use of Bitcoin is to buy Monero, which protects privacy, and hence remains fungible.

sun tzu's picture

You're a son of a whore with your head stuck up your obama 24/7

Mark Urbo's picture

Trump was right as usual - market was/is bubble.

Current market is a perception bubble on the future Trump economy...

..key word being future.

cn13's picture

Um ? Crude oil?

JackT's picture

Bitcoin a commodity?

stacking12321's picture

as fonestar would say:
BUH TEH BIT!

CPL's picture

Information is power.  And to answer your question...Processing power. 

Need muscle to run numbers to a problem? 

BitCoin is the largest internationally available, open source distributed mainframe solving a single equation, 11000X faster than all the top fortune 500 companies put together and ALL governments of the world.  It's built to step on all fiat regimes like a bug while solving a very difficult math problem broken up into 21,000,000 blocks that increase with difficulty as the equation is solved in a completely and totally transpearent manner that allows ANYONE to follow the money (very important since 9/10th's of the law is all about ownership))

The difficulty of the math problem to find the solution produces by products like more effienct chip design (2w versus 200w) that run faster than the current Intel paradigm on the openly, freely available and much fast ASIC designs built by very smart people in their small businesses, workshops, garages and basements.  The units to help render the solution have broken Moore's law like a hot knife through butter, smashing through the petaFlop as if it were nothing (7059965.06 petaFLOPS...fuck you Cray Inc, mine's built MacGuyver style with spit and duct tape).

For early adopters (China, India, Canada, Northern Europe, Parts of Russia, South America, Africa, etc...) it has rebooted local and regional economies in places like the Lakota Nation with guys like Payu Harris helping develop inter-tribe trading platforms using BitCoin branch projects like MazaCoin.  Other places use the platform to solve the equations/problems they stuck on, since BitCoin is really a P2P turnkey distributed super computing platform that's 'free as in beer'.  It gives ALOT of power back to organisations without the means to afford a trillion dollar super computer for very little in terms of capital investment as long as they've got talent to use it.

Additionally it has a growing consumer adoption and is now practically everywhere, in every country being used as money to buy everything from food, clothes, homes, cars, etc.  It can be as anonymous as you need it to be or open to public inquiry because it has to be.

We Are The Priests's picture

Yeah, and Cheeperthandirt.com is having a killer year end clearance sale on led.  BTFD, Bitchez.

King Tut's picture

CTD sucks- not only did they price gouge like hell after Sandy Hoax a lot of their stuff is never in stock and their shipping charges are exorbitant

King Tut's picture

I like Sportsmans Guide-$40 a year membership but great prices and free shipping - AIM Surplus too

El Vaquero's picture

I personally like midway.  Been doing business with them for years and I have never had a problem with them.  I just ordered a neck turning tool yesterday and it has already been shipped.  Now I just need to decide on RCBS or Redding for the competition seating die that I'm going to be purchasing in the near future. 

HRH Feant's picture

Buy the bubble in Bitcoin! Hurry! Year-end clearance!

CJgipper's picture

It may be up a bit but considering that it's a stable value "asset" and inversely tracking currency in a lagging fashion, I'm not sure bubble is appropriate.

HRH Feant's picture

Okie doke on that stable value / asset!

dark pools of soros's picture

right, you say you hate the system but you defend 'the system'

 

what a crank, like many of ya here

 

 

HRH Feant's picture

Have you followed my comments?

I have never made any such comments. You are making claims about my various comments, about what I have said, but go ahead, find where I made that exact quote. I dare you.

You know nothing asshat. Go dig a ditch.

Bay of Pigs's picture

He's a total fuckhead who bashes physical gold regularly.

OregonGrown's picture

Any valuation given to bitcoin, over it's intrinsic value of ZERO, is considered bubble territory in my world!

Xena fobe's picture

Not zero since it includes the value from real currency transfers. 

sun tzu's picture

If it's not in your possession you don't own it

stacking12321's picture

do all the considering you want.

but some of us who live in the real world, know that there's real value in being able to bypass capital controls, crossing borders with $1m in wealth undetectable to anyone, and accepting payments online with 0% fees, to name a few things.

HRH Feant's picture

I agree but this price is still in bubble territory. Full stop. That happens with everything.

stacking12321's picture

do tell.
how did you conclude that bitcoin price is in bubble territory?
what is its "fair" price, what is your valuation metric?

Kaervek's picture

he's clueless. crypto is a new asset class and bitcoin leads with reserve currency status. price is only low because most people didn't yet realize the technological revolution we hold in our hands, the same people who still believe paper dollars are actually worth "something".

with fiat inflation running rampant there is hardly ever going to be a fixed price on a deflationary currency like bitcoin. there is no fair value on the mother of all crypto, Bitcoin is the valuation metric itself.

The central planners's picture

You can buy a multi million dollars old shack in Palo seco too.

FreedomGuy's picture

When the balloon pops it all goes down, Then they will attempt to dump onto foreign markets.

DirkDiggler11's picture

Great, now all of the PT Barnum "victims" are going to be all over ZH pumping ShitCoin. I really do wish these folks well, but I can tell you ShitCoin will end ugly.

It all comes back to why I hold Phyz PM's... cause when the shit does hit the fan, if you don't have Phyz you don't have SHIT. Telling somebody you have ShitCoins on your jump drive in exchange for any good or service will just get you an early dirt nap. Good luck ShitCoin worshippers, please buy some tulips on the way up....

TheytookERjobs's picture

Why live In a digital age when we can go back living in the stone age with stones and sticks lol

TVP's picture

Shit has already begun to hit the fan.  That's why bitcoin has risen from $0.30 six years ago, to $900 today.

Tulip bulb analogy makes no sense.  Tulip bulbs cannot be exchanged for copper/silver/gold/platinum.  Tulip bulbs cannot be used to book hotels, purchase plane tickets, buy jewlery.  Tulip bulbs cannot be divided up and transferred across the globe for virtually zero fees in a matter of moments.  And tulip bulbs never became the world's best performing asset (2015 - maybe 2016 also).  I'm all about physical PMs, but tell me, can they do any of the above?  They're a store of value, not a medium of exchange in today's world.      

The world's first decentralized, deflationary, non-fiat digital currency has been created.  

Why some people hate this will forever be beyond me.    

froze25's picture

I here you the only thing holding it back is mass adoption. Don't get me wrong it's out there but it hasn't expanded to its tipping point yet. If you own an ounce of gold just in case, why not a Bit Coin.

Oldwood's picture

Because our threat is not currency or financial systems, but our governments that use them to control us. If Bitcoin or PMs ever offer threat to their power, they will be shut down in minutes.

Every perceived escape channel has been created as another false alternative. In the end they only currency of value will be our minds, hands and how we decide to use them.

Anyone who thinks their monetary hedge will reward them is only chasing diversionary illusions. If we haven't already noticed, EVERYONE is trying to game this disaster for "profit", which is the entire purpose OF the "game" presented us. This desire for ROI, or "money for nothing" is the wind beneath the wings of this scam to redistribute wealth from the producers to the owners of the casino.

dark pools of soros's picture

Bitcoin is free.. you're a clown..   just because they go after the main channels from fiat to bitcoin does not sto bitcoin being used between two people anywhere in the world..  that harder they make it to get in and out of bitcoin, the more it will rise, not die

 

they can turn off the internet but then that destroys all their control as well, correct?  So if they do, bitcoin wins by having them destroy themselves

 

 

 

One World Mafia's picture

Why have the big banks been pushing it if it is a threat to their power?

Bay of Pigs's picture

The Fonestar Brigade will never answer that question.

stacking12321's picture

as a loyal dues-paying member of the fonestar brigade, i'd be happy to answer the question.

the big banks are not in fact "pushing" it (bitcoin).

by all means, if you'd like to provide some supporting evidence to back up such a claim, please do so.

but if you look into it, you'll see that what banks are really doing, is trying to promote their own blockchain-based technologies (not bitcoin), they are trying to compete with bitcoin, but they won't succeed.

the offerings of the big banks are both late to the party, and also inferior, both in security, in transparency, and in the fact that their offerings are centralized.

one of the brilliant things about bitcoin is that it is decentralized, you hold your own money, there is no way for a bank or anyone else to freeze your account or pull money out without your consent. there is no central server to target.
banks want centralized blockchain technology, it's like a chocolate chip cookie without the chocolate chips, people don't want it.

by all means, let them try, i'm all in favor of competition, and i'm positive the banks' offerings will be rejected.

stacking12321's picture

ok, 5 random links on big banks and bitcoin.

so, how do any of these articles support the notion that big banks are pushing bitcoin?

take the first link, bitcoin patents - you do realize that a bitcoin-related patent by a bank does not support bitcoin, don't you? it is an attempt to use patent law as a weapon againts bitcoin-related companies, to restrict, control or attack them.

We Are The Priests's picture

"In the end they only currency of value will be our minds, hands and how we decide to use them."

An eternal truth if there ever was one.

TVP's picture

Bitcoin cannot be shut down.  There is no bitcoin server or central node to attack and stop from working.  It's distributed and decentralized.  

HRH Feant's picture

WTF are you talking about you clueless fucking idiot? Obviously you don't know any real Dutch farmers nor any tulip farmers. Yes, indeed, those little bulbs can still be traded for money / silver / gold / or Bitcoin. Obviously you have never met a wealthy tulip farmer, I know more than one. Too bad for you that your ideas on life are so limited that you do not understand the value of hard work, farming, cultivating a crop, along with modern ideas like branding with regard to a varietal that can be shipped, on time, to any market in the world. The Dutch were global shippers long before tulips came along. The Dutch, and their offspring in the good ol USSA, are still hard workers shipping and marketing various items around the world.

Jeezus wake the fuck up before you start spouting off about shitty tulip bulb analogies that you know nothing about.