Predictions by Michael Pettis on China … Non-Food Commodity Prices Will Collapse Over Next 3 to 4 Years

Non-food commodity prices are set to collapse over the next three to four years.  “Collapse” is not too strong a word.  China’s share of global demand for such commodities as iron, cement, copper, etc. is completely disproportionate to its size and almost wholly a function of its very high growth in investment.  As investment growth drops sharply, as it must, global demand for non-food commodities will plummet.

via Mish’s Global Economic Trend Analysis: 12 Predictions by Michael Pettis

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