Posted on 07/15/2009 7:34:09 PM PDT by maccaca
BEIJING -- China's economy accelerated in the second quarter amid huge stimulus spending, expanding by 7.9 percent from a year earlier as retail sales and industrial output grew strongly, data showed Thursday. The growth rate, reported by the National Bureau of Statistics, was up from 6.1 percent in the first quarter. The government's growth target for this year is 8 percent. Consumer prices in June fell 1.7 percent from a year earlier, data showed, giving Beijing a freer hand to carry out its 4 trillion yuan ($586 billion) stimulus without a danger of adding to pressure for prices to rise. Many analysts expect China to be the first major country to emerge from the worst global economic slump since the 1930s. The government is trying to use its stimulus to insulate China from the global downturn by pumping money into the economy through higher spending on public works construction.
(Excerpt) Read more at forbes.com ...
That doesn’t seem likely.
Hell, if Kim Jong Il can make 18 hole-in-ones in a round of golf, anything’s possible.
yeah it does they don’t have Zero and a Democratic Congress.
I can’t be bothered with this news — I’m too happy celebrating my marriage to my wife: Morgan Fairchild.
How do we arrive at numbers for China’s economy? Surely we don’t take their word for it, do we? Of course we accept US inflation numbers that exclude food and fuel, and we all know the unemployment numbers are drastically cooked, so maybe anything goes.
its a lie
I’m calling BS on this, too.
China can say anything they want and who is going to prove them otherwise.
So an export economy in the midst of a worldwide recession somehow has a 7.9% growth rate? BS or Germany would love to know it’s secret, as would SK, Taiwan and Japan.
They do have a huge domestic market, over three times the size of our domestic market on a per head basis. If they could redirect production to thier domestic market instead of an export market, then they will be just fine.
Chi-Com banks are loaning trillions of yuan as part of the stimulus. What about them non-performing loans that worry economists?
I’ve read, forgot where I heard this, that 8 is the lucky number there. So they usually report 8% growth. And when they want to report higher they report something like 9.8 or 10.8 percent growth.
This number has no eight.
It might be an ominous sign/signal.
Subtle enough for the informed, but that’s about it.
Hey it doesn't bother them that our big banks are insolvent today, if they had to mark their assets accurately so why should they care about the Chicom bad loans?
Yes.
I believe that's how all the advanced countries did it. It's about time that developing countries get it!
A couple of months ago I re-allocated my retirement funds and went 70% Asian/emerging markets. My broker, didn’t say I was crazy, but said, “You do know this is upside down of what everyone else does.” BTW, this is for new investments, my old stuff is where it has been for the last few years. I think that barring a massive Asian land war or something, that India and China are going to start seeing a rising middle class, and that much of their growth will be spurred by this consumer market. I’m not optimistic about US business right now.
It’s not BS. China’s people are now beginning to buy the things we cannot afford here.
Peter Schiff predicted all of this 3 years ago and they laughed him to scorn.
Chinese GDP A Case Of 'Fake It ‘Til You Make It'
China’s GDP figures might show that the world’s third-largest economy is coming out of its funk. But few economists will take Thursday’s report at face value. While their caution is wise, the Middle Kingdom probably is recovering – tentatively.
By John Foley, breakingviews.com
Published: 3:16PM BST 15 Jul 2009
The country’s leadership has set a target of 8pc growth for 2009. Most economists believe the magic number will be hit, as do 88pc of investors in China, according to an ING survey. Reported growth in the first quarter was 6.1pc, and a 7.1pc “print” is expected for the second quarter, followed by above-trend growth in the second half.
But the GDP growth rate in China is too important a number politically to be reliable. From the bottom to the top of the data chain, everyone has a reason to report numbers that look politically correct. As economist Charles Goodhart pointed out, when leaders turn a measurement into a target, it stops being a good measurement.
Still, simpler indicators also point to recovery. Car sales rose 37pc in June. Electricity consumption rose 3.7pc, reversing May’s decline. Production of steel, diesel, speciality chemicals and even fridges are all back at pre-downturn levels. Exports are still falling, but a slower fall in imports suggests China's domestic consumption is recovering faster than that of its trade partners.
[snip]
THIS IS A LIE!
If you read between the lines, it says “due to stimulus spending” there economoy grew 7.9%.
This is another example of media trying to prepare us for a second round of stimulus spending, and make us think it worked for the chinese so it should work for us.
BULLSHHHHHHHH
The World Bank has given warning that global economy will fall into a "deflationary spiral" unless urgent action is taken to reduce high levels of excess capacity in industry.
By Ambrose Evans-Pritchard
Published: 6:21PM BST 15 Jul 2009
Justin Lin, the bank’s chief economist, said factories running idle around world threaten to trap economies in a vicious cycle, risking further spasms of financial stress, requiring yet more rescue packages.
"Significant excess capacity has been built up and unless this issue is addressed, we will face a deflationary spiral and the crisis will become protracted," he told an audience in Cape Town.
Mr Lin said capacity use had fallen to 72pc in Germany, 69pc in the US, 65pc in Japan, and as low as 50pc in some developing countries, mostly touching lows not seen in modern times.
[snip]
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