The price of scrap metals is also down because of overproduction of raw 
materials. There are several new mines in Australia that MUST produce to pay 
the creditors, normally a mine would shut down in view of the low commodity 
price but they can't.
Good news is that the influx of new material will result in better quality 
metals for awhile. Using all scrap gradually degrades production...
-Curt

      From: G Mann via Mercedes <mercedes@okiebenz.com>
 To: Mercedes Discussion List <mercedes@okiebenz.com> 
Cc: G Mann <g2ma...@gmail.com> 
 Sent: Tuesday, September 8, 2015 12:56 PM
 Subject: Re: [MBZ] Why your junker ain't worth as much now
   
Sorry Andrew.. you are using "co-mingled logic"..

Inflation is a stand alone issue.

Scrap prices are a stand alone issue.

Raw material demand drives scrap price far more than dollar value. Same for
crude oil, and other commodities.

When American economy thrives, Americans consume more than any other
country in the world, per capita, and pay for it because we are all "rich"
by comparison. Those countries buy raw materials and convert them to
finished goods with cheap labor and lack of EPA style government
intervention, for sale to their number one customer, USA.

Sales are flat lined, future orders are flat lined, and thus, production at
these "raw product buyer" countries is flat lined.  China, when USA economy
was booming pre 2008, was paying over $300 per ton of scrap steel and
couldn't get enough to fill manufacturing orders in the que.. Now... very
low demand due to low sales of finished goods.. because Americans are not
buying..

When America stops buying, other countries stop producing, their workers
stop working, and paying taxes, feeding their families.

Mr. Obama, whom you give reference to, has done nothing visible to improve
Americas economy in the past 6 1/2 years except borrow more and spend on
things like Solandra, and bank bailouts, which rewarded bad business
practice. So, by my rules, he has not been the "change we've been hoping
for". Your personal mileage may vary.

Diesel price here is now $2.19 per gallon... so I may start driving more..
which will drive demand up, and ultimately, the price of crude..
Eventually, I will wear out a part on the Mercedes, need a new one, someone
in China will take the order, along with others, buy some scrap, smelt it
down, make new parts, and ship one to me...

Respectfully,

Grant...

On Mon, Sep 7, 2015 at 8:05 PM, Andrew Strasfogel via Mercedes <
mercedes@okiebenz.com> wrote:

> Sounds like you would be singing Obama's praise if we had rampant
> inflation...
>
> On Thu, Sep 3, 2015 at 7:03 PM, Loren Faeth via Mercedes <
> mercedes@okiebenz.com> wrote:
>
> > Interesting explanation.
> >
> >
> >
> http://www.rabin.com/meet/Blog/August-2015/Market-Watch-The-Scrap-Metal-Industry.aspx
> >
> > Scrap metal prices have always been a indicator of world economic health.
> > Low scrap prices = depression on the way.  High scrap prices = boom
> coming.
> >
> > Scrap metals, rendered oils and protein, foods, pretroleum, pretty much
> > all the commodities are at lows that were unthinkable a couple years ago
> in
> > the 'bummer depression.
> >
> >
> > As a practical comparison, 4 yrs ago, a 5-7 yr old dogde van was worth
> > $8-10k from private sellers.  This week I saw 5-7 yr old dogde vans
> mostly
> > around $5K from private sellers.
> >
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> >
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