Why China Is About To Bring The Global Reflation Rally To A Halt

Previously we reported that iron ore prices – having almost doubled in the past year and launching a global reflationary wave – are on the verge of tumbling as the world becomes increasingly aware that China has a “13,000 Eiffel Tower” record inventory problem.

And while we previously discussed the immediate adverse implications for iron ore bulls, the conseqences for the global economy could be far more material.
Conveniently, in a note this morning, BMO’s Mark Steel looked at the same issue, focusing on the big picture implications.
His note titled “China’s greatest gift to the US” – a “gift” which will become clear in moments – takes aim at the latest overnight selloff in iron ore, when prices fell 1.7% on Friday.

This post was published at Zero Hedge on Mar 31, 2017.

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