Don’t you know a bust when you see it, Bloxo?

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One does wonder what it would take to turn that smile upside down.

If we ever see $85 again it will be brief. The supply deluge has barely begun. Chinese demand is slowing very fast, with export growth preventing a calamity, which will also slow next year. We are effectively at “peak steel”. The “great Australian rebalancing” is on the verge of the great Australian bust.

A serious assessment might generate appropriate investor and policy concern.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.