Makes me disbelieve everything else the bloke says

Gell Mann Amnesia this isn’t, although perhaps part of that precursor stage. The jarring detail that calls into question everything else being said:

The price of iron ore is under pressure from massive Chinese production.

Rilly?

Well, no. The iron ore price is under pressure from a massive reduction in planned Chinese steel production. Not from any massive rise in domestic iron ore production.

Makes everything else said on the subject of metals and markets more than a little suspect, eh?

3 thoughts on “Makes me disbelieve everything else the bloke says”

  1. Nice to learn the name for it. The Economist is a perfect example.
    But there seems to be a selective bias in the effect. We’ve all seen the propaganda about covid blow up multiple Times but still we keep reading. My excuse is the crossword.

  2. Without bothering to follow the link for clarification, that out-of-context sentence could be true. What’s the massive production of? If China is massively increasing production of iron ore that would indeed force the price of iron ore down – greater supply, lower value, lower prices. If, though, China is massively producing something that *uses* iron ore then yet that would push the price of the iron ore up – greater demand, higher value, higher prices. Without polluting my eyeballs I have no idea if the assertion is correct or counter reality.

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