Teflon miners rise as Dalian fades iron ore

Monday, 2 March 2015

There’s no doubt about financial repression. The price of the only thing that you sell can crater yet your own equity value can still soar. It’s magic! RIO is covered in such fairy dust today as it marches higher 2% on the Chinese rate cut and BHP is up a little less. Alas for FMG the truth will out and it is unable to rise as Dalian iron ore futures fall 2 points in the knowledge that China’s structural adjustment remains fully on track. Here are the indexes:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.