Truly, iron ore is a crazy market


It has always been thus and got worse when it was financialised.

There is nothing bullish about the Chinese economy. Demand is ruined by crashing real estate. The outlook for construction is beyond disastrous:

Beijing will continue to throw infrastructure stimulus into this black hole for as long as it takes. And, as was the case during the GFC housing crashes in developed economies, it will never be enough to prevent demand from falling anyway.


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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.