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This paper presents a state space based simulation model for MIMO-OFDM channels with spatial-temporal-spectral channel correlation due to clustered radio propagation. The scattering clusters are modeled as 2D Cauchy-Rayleigh clusters. This renders AOD, AOA that can be approximated as the Cauchy angular power distributions, and TOA that can be approached as the Cauchy delay power distribution. Thus, the spatial-temporal- spectral correlation can be approximated as the product of an AR(1) model and the corresponding spatial-spectral correlation. A state space model is employed to the temporal dynamics of the MIMO channels. The contribution of the cluster to each antenna is a state in this model. A correlated innovation process adjusts the correlation between antennas and frequencies. This renders the appropriate spatial-temporal-spectral channel correlation in the simulated channels.