Inflation Is Poised To Rise Because Of China Pollution

 AKS Steel Holding Company recently announced an across the board price increase on all its steel products of 2%. It cited rising demand across the globe. United States Steel has similar robust prospects. Alcoa and other basic material dealers are demonstrating a turn around in their stock price and the price of the their underlying metal ingots. China's pollution woes will provide a white hot boost to basic metals pricing. Simply the Chinese people can be content with 150 feet visability in cities because of coal-fired manufacturing and utility production or the smoke stacks will be shut down in the interest of public health. With this cutting back of steel , aluminum , copper and other materials and finished goods will come some or a lot of inflation. That will kill equities and may bring down China's highly leveraged real estate , banking and municipalities. But that may be a year away. So in the interim buy steel, copper, aluminum stocks. Later buy massive amounts of out-of the-money puts on the major indicies as stagflation grips the economies around the world.