Has the deflation/deleveraging theme worn itself out?

Corresponding with near universal boredom of the deflation argument, the base metals have been showing symptoms of selling exhaustion. Pesky, unpatriotic hedge funds who ran up commodities in the first place are finished meeting nasty margin calls demanded by TARP-approved brokers. Whatever damage the paper world has inflicted, be sure creditor nations like China are furiously swapping USDs for hoardable metals. Not to be converted into electronic trinkets and plasma screens for western markets, but for domestic infrastructure with longer term focus. Most base metals are sitting at or below production costs so clearly anybody with money to burn is going apeshit over deals down at the LME. Why bother to mine it at all? Self-fulfilling as it is, capital eating up REAL metal supply is capital NOT spent on exploration and mining.

With little fanfare, or with all available fanfare being used up focusing on Team Hope, China has stopped buying US debt and is pouring zillions into internal stimulus programs. Of course the implications of this are enormous but lets continue to ignore what effects us most and instead, focus on what effects us least.

Teen tot mom killers anyone?

So here are some fascinating base metals charts put together by Richard Shaw on SeekingAlpha
click here