The Coming China Crash

As money supply growth continues to be slowed by China's central bank, The People's Bank of China, indications are that China will face a classic Austrian Business Cycle downturn, including a stock market crash.

A friend in the steel industry sends along this report from SBB Analytics China:

China's crude steel production dropped by 3.1% in the first 10 days of July to 1.955m tons per day.

 Steel prices according to the report, however, were up a bit, suggesting that what China will face is stagflation, rising prices and a declining economy.