Like the 10-year note we mentioned yesterday, our friend Dr. Copper just made a dramatic "pop" higher.
Copper is a vital ingredient in cars, power lines, refrigerators, plumbing, and electronics, so its price is an excellent indicator of global economic health. The metal enjoyed a huge rally in 2009 as governments around the world "reflated" their struggling economies with cheap credit. Over a month ago, we ran a chart of copper and noted the metal's huge run higher looked to be ending. This week, however, copper staged an enormous jump to reach a new 52-week high.
Like the soaring shares of restaurants and Home Depot, the big move higher in copper shows the government's monstrous "E-Z-Credit" program is working right now. Demand for just about everything is increasing... and taking copper, restaurant profits, and home-improvement shares higher.
We'll say it again: Sure, the U.S. economy has terrible problems right now. Government debt and government debt are the two biggest. But until the charts of things like copper start to break down, we can only stand back in amazement and say, "Well done Bernanke, Geithner, and Obama, you've made spenders and speculators out of us all."