The results released today make it increasingly likely that China will miss its annual growth target for the first time since 1998,
Although the absolute slowed growth number of 7.3% may appear strong on a relative global basis, that number itself reflects much phony growth in the form of buildings and infrastructure built that will never be used. Despite massive growth after the lifting of chains of Mao type totalitarianism from much of the economy, the central planning instinct in China remains.
The slowdown in the centrally planned growth is an indication that China's central bank, the People's Bank of China, now fears additional money printing. That is, the PBOC believes it will lead to significant price inflation and civil unrest.
This is not going to end well for China. It is quite possible that it may result in the greatest economic crisis in history.
their growth was based on exponential debt.....after the deluge?
ReplyDeleteThe Chinese precious metals market is on fire
China's gold demand, as signified by offtake from the Shanghai Gold Exchange, has reached "extraordinary" levels in recent days, while silver is growing shorter in supply as well, according to gold researcher and GATA consultant Koos Jansen, market analyst for Bullion Star in Singapore. Jansen's analysis is headlined "The Chinese Precious Metals Market Is on Fire" and it's posted at Bullion Star here:
https://www.bullionstar.com/article/the%20chinese%20precious%20metals%20market%20is%20on%20fire