Wednesday, February 8, 2012

More Hints of a Crashing China

Here's another indication of the developing China crash.

The China Securities Journal is reporting that China’s electricity output dropped 7.5% in January.

Electric consumption in China is a very good proxy for economic activity.

You have to look at a lot of data coming from the Chinese bureaucracy with a great deal of skeptisism, but the electric output data is a hard number that does not appear to be monkeyed with, and the data signals a major drop in activity



4 comments:

  1. If China crashes, will Fed money printing be enough to hold up commodities prices?

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  2. So are there any countries you are bullish on, at least for manufacturing, to weather out the next few years?

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  3. Well, it could just signal that they are using more energy-efficient technologies.

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  4. I'll take your silence as a no...

    ReplyDelete