The price of tin has fallen. Explanation: the government of China may announce measures to reduce housing speculation.
If cause-and-effect here seems vague, that’s because you are not wearing a tin foil hat. There is good news: the cost of these hats will soon fall.
The logic is this: China will take unnamed steps to reduce housing speculation. Like what? No one knows.
It could tell the central bank to stop inflating. But it never does.
Is the world price of tin dependent on Chinese home construction? If so, then China runs the world’s economy. How? By inflating.
Or is the fall in all metals a sign of a looming recession? If that sounds reasonable to you, you are not wearing a tin foil hat.
The financial media do not tolerate predictions of recession. They are always bullish. So, they all wear tin foil hats. Then things always look bullish.
Japan is in a recession. Europe is in a recession. Walmart’s sales are down. The U.S. economy went negative in December. But the prices of tin and copper are falling because of what the Chinese government may do next month.
That’s what tin foil hats lead forecasters to believe.