If you’ve been watching CNBC lately, you’ve probably seen their new contributor Keith McCullough who’s been recommending views to “Fight the Fed” and bet on higher rates.
McCullough is the head of HedgEye, and he’s a well known hater of Bernanke, fiat money, and Keynesian stimulus.
Today’s Hedgeye Chart Of The Day slams Bernanke over the surge in copper prices. The gist: Bernanke has practiced loose money, and so copper prices have gone up.
As Matt Busigin sarcastically commented: “Bernanke is responsible for Chinese urbanisation & building boom? Cool, never knew.”
Indeed, the surge in commodity prices almost certainly has more to do with Chinese demand than Bernanke.
Want some simple evidence? Look at the chart above and compare that to the price fo the Aussie dollar against the yen, which is also a great China proxy. Now it’s not identical, and AUDJPY hasn’t hit new highs just yet, but it’s pretty close and the shape is similar. What’s more is that this currency cross can’t easily be attributed to anything Bernanke is doing to the dollar (we’re sure that if you contort yourself, you could find a a way, though).
Bottom line: this is a great example of how hating Bernanke can make you see the wrong things in the economy.
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