{"id":15111,"date":"2015-12-09T07:19:37","date_gmt":"2015-12-09T12:19:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15111"},"modified":"2015-12-09T07:20:05","modified_gmt":"2015-12-09T12:20:05","slug":"plunging-commodities-interfere-with-the-new-world-order","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15111","title":{"rendered":"Plunging Commodities Interfere With The New World Order"},"content":{"rendered":"<header class=\"post-header title-container fix\">\n<div class=\"title\">\n<h3 class=\"posttitle\"><a class=\"entry-title\" title=\"Plunging Commodities Interfere With The New World Order\" href=\"http:\/\/www.theautomaticearth.com\/2015\/12\/plunging-commodities-interfere-with-the-new-world-order\/\" rel=\"bookmark\">Plunging Commodities Interfere With The New World Order<\/a><\/h3>\n<\/div>\n<\/header>\n<div class=\"entry-container fix\">\n<div class=\"entry fix\"><center>Anglo American, a British company, and one of the world\u2019s biggest miners, and a \u2018producer\u2019 (actually just a miner, how did those two terms ever get mixed up?!) of platinum (world no. 1), diamonds, copper, nickel, iron ore and coal, said today it would scrap dividends AND fire 85,000 of it 135,000 global workforce (that\u2019s 63%!).\u00a0<\/center>Anglo is just the first in a long litany line we\u2019ll see going forward. Commodities \u2018producers\u2019 are being completely wiped out, hammered, killed, murdered. They\u2019ve been able to hedge their downside risks so far, but now find they can\u2019t even afford the price of the hedges (insurance) anymore. And then there\u2019s all the banks and funds that financed them.<\/p>\n<p>And they\u2019ve all been gearing up for production increases too, with grandiose plans and -leveraged- investments aiming for infinity and beyond. You know, it\u2019s the business model. 2016 will be a year for the record books.<\/p>\n<p>Just check this Bloomberg graph for copper supply and demand as an example. How ugly would you like it today?<\/p>\n<p><center><img decoding=\"async\" src=\"http:\/\/www.theautomaticearth.com\/wp-content\/uploads\/2015\/12\/CopperSurplus.jpg\" alt=\"\" border=\"0\" \/><\/center>And what\u2019s true for copper goes for the whole range of raw materials. Because China went from double-digit growth to shrinking imports and exports in pretty much no time flat. And China was all they had left.<\/p>\n<p>Iron ore is dropping below $40, and that\u2019s about the break-even point. Of course, oil has done that quite a while ago already. It\u2019s just that we like to think oil\u2019s some kind of stand-alone freak incident. It is not. With oil today plunging below $37 (down some 15% since the OPEC meeting last week), it doesn\u2019t matter anymore how much more efficient shale companies can get.<\/p>\n<p>They\u2019re toast. They\u2019re done. And with them are their lenders. Who have hedged their bets too, obviously, but hedging has a price. Or else you could throw money at any losing enterprise.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Plunging Commodities Interfere With The New World Order Anglo American, a British company, and one of the world\u2019s biggest miners, and a \u2018producer\u2019 (actually just a miner, how did those two terms ever get mixed up?!) of platinum (world no. 1), diamonds, copper, nickel, iron ore and coal, said today it would scrap dividends AND [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10960,2674,135,151,1851,1720,10961,2656,355,1362,10962,10963,1268,1267,7738],"class_list":["post-15111","post","type-post","status-publish","format-standard","hentry","category-economics","tag-anglo","tag-automatic-earth","tag-cia","tag-commodities","tag-commodity-price-collapse","tag-commodity-prices","tag-congo","tag-copper","tag-geopolitics-2","tag-iron-ore","tag-mi5","tag-miners","tag-new-world-order","tag-nwo","tag-raul-meijer"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15111"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15111\/revisions"}],"predecessor-version":[{"id":15113,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15111\/revisions\/15113"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}