Wednesday, August 26, 2015

Ain't This The Truth

Eduardo Porter writes at NYT:
Nobody believes China’s official statistics anyway. What if the country’s economy is slowing faster than anybody knows.
In addition, a large part of measured growth is government make work projects. There are over 60 million newly built vacant apartments in China. I suspect many are not fit for occupancy. If you are building apartments that you know won't be lived in anytime soon, the temptation to use construction shortcuts is very tempting.

All the apartments, though, have all been counted as part of Chinese growth, They should really be classified as Chinese theft, as the money used to fund these useless projects was a combination of tax money and central bank newly printed money, money that competed for the bidding of services against the general public.


1 comment:

  1. How is it that the NYT can recognize the Keynesian nightmare going on in China, but has blinders on when it comes to the US? Or they see it but are not allowed to say anything?