A belated rebalancing of the Chinese economy will lead to a collapse in commodities prices by 2015 according to one of the West’s leading experts on the PRC economy. Wall Street veteran and Peking University finance professor Michael Pettis ups his bearish outlook on hard commodities, asserting that prices will continue to decline and hit the brink of collapse by 2015.
The core reason is that the surge in demand which induced a global resources boom was the direct result of unbalanced growth in China over the past two decades, and that this unbalanced growth is currently headed for a sharp correction………………………………………..Full Article: Source