Commodity bubble turns manure pile

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Truly, global markets do not understand commodity cycles. Some of this is folks talking their books. Some of it is pure ignorance. What we can say for sure is that as the commodities bubble pops, the leftover space is being filled with balderdash.

All areas of the commodity market are being covered in rhetorical manure, starting with China, according to Bloomberg:

  • Chinese growth has decoupled from credit.
  • Even in the property sector because more credit is going to more efficient SMEs.
  • Services share of growth is rising, needing less credit to generate growth.

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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.