The effect of metals speculation was to push up the prices that China had to pay to countries like Australia. This squeezed China. Once the speculative demand ended, all of a sudden the added production facilities that had been brought into production by the high prices went out of production again, and there was a glut.
![The effect of metals speculation was to push up the prices that China had to pay to countries like Australia. This squeezed China. Once the speculative demand ended, all of a sudden the added production facilities that](http://cdn.quoteddaily.com/images/michael-hudson/the-effect-of-metals-speculation-was-to-push-up-the-prices-that-china-had-to-pay-to-countries-like-australia.jpg)