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


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

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

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

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