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Wednesday, May 20, 2009

What if China is just stockpiling?

There has been a lot of talk that the rebound of the commodities signal the coming economic recovery. But I was intrigued by this Bloomberg report that China may have been strategically piling up a lot of commodities at very cheap price as a result of the collapse of the commodities across the board. 

If that is the case, or assuming majority of these commodity imports are just for hoarding purpose, is the world economic recovery just a mirage?  An interesting question worth more research.


Read the report here.