April 14, 2012 1 Comment
This piece of rubbish has been published by the FOX propaganda machine accusing China of inflating their numbers. BrotherJohnF has posted and commented adequately here.
China announced on Friday its gross domestic product slowed to a pace just north of 8% in the first quarter, but like most economic readings that come out of the Asian giant, investors are taking it in with a grain of salt.
While no smoking gun has emerged, there is a general sense in the financial community that China, like some other frontier economies have in the past, may artificially inflate the numbers in its official statistics.
“I think there is a sense that the data we get out of China is somewhat suspect in that it is to some degree subservient to political objectives,” said Peter Kenny, managing director at Knight Capital.
The cynicism, which is only fueled by China’s closed society, poses serious obstacles for investors attempting to ascertain what’s truly going on under the hood of this crucial economic engine.
Asked about China’s 8.1% GDP growth, Gordon Chang, author of The Coming Collapse of China, told FOX Business, “I don’t know how they got to 8.1%. They just made that number up from thin air,.”
None of this is to say that the broader investment community believes China is completely cooking the books and its economy is actually shrinking.