Re The China Growth Miracle? Doubtful
I have my suspicions about China’s GDP growth numbers…I can see on the supply side -Government stimulus, but where is the demand side of the equation? Have you noticed the following contradictions and paradoxes? ie why has total industrial electricity usage droped in 2009 while the economy and exports are supposedly growing? Chinese factories have not gone green. How can Chinese exports be growing at such a pace when global imports are flat or dropping and the Baltic Dry Index is anemic ? Who are they exporting goods to? The Chinese don't buy their own kitch and junk. Maybe they are just munfacturing it, writing it off their books and then storing unsold goods in warehouses or in empty ships and vessels ?
[see How China Cooks Its Books BY JORDAN CALIN in the widely respected Foreign Policy Journal from 2009 http://www.foreignpolicy.com/articles/2009/09/03/how_china_cooks_its_books ; It's an open secret that China has doctored its economic and financial statistics since the time of Mao and nothing to indicate that anything has changed. But could it all go south now? --Walter Derzko]
If Smart Economy Blog readers find similar contradictions to show that the Chinese are cooking their books and fudging economic data, please pass it along.
I never trusted any communist government.
Walter Derzko
Author of the soon-to-be published book- Opportunity 45 Scenarios to Drive Your Business in Challenging Times,
published by J. Wiley and Sons
ISBN13: 978-0-470-73761-3
ISBN10: 0-470-73761-1
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