“It is our suspicion that China likes declining commodities. Soaring prices over the past several months have made it much more expensive for China to squelch its never-ending thirst for raw materials. What better way to get lower prices and fighting inflation pressures at home, than to promote the idea that interest rates will rise, the economy will slow, and commodity prices will drop. Chinese officials just said that copper prices are about 20% higher than justified. Doesn’t that confirm my view?
However, governments often don’t get what they want.” Read more.