A 'Copper Standard' for the World's Currency System?

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China’s
State Reserves Bureau (SRB) has instead been buying copper and other
industrial metals over recent months on a scale that appears to
go beyond the usual rebuilding of stocks for commercial reasons.

Nobu Su, head
of Taiwan’s TMT group, which ships commodities to China, said Beijing
is trying to extricate itself from dollar dependency as fast as
it can.

"China
has woken up. The West is a black hole with all this money being
printed. The Chinese are buying raw materials because it is a much
better way to use their $1.9 trillion of reserves. They get ten
times the impact, and can cover their infrastructure for 50 years."

"The next
industrial revolution is going to be led by hybrid cars, and that
needs copper. You can see the subtle way that China is moving into
30 or 40 countries with resources," he said.

The SRB has
also been accumulating aluminium, zinc, nickel, and rarer metals
such as titanium, indium (thin-film technology), rhodium (catalytic
converters) and praseodymium (glass).

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April
17, 2009

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