Thursday, January 22, 2009

China's economy contracts

Sorry, I don't believe it.
Gross domestic product grew 6.8 percent in the fourth quarter from a year earlier, after a 9 percent gain in the previous three months, the statistics bureau said in Beijing today. The figure matched the median estimate of 12 economists surveyed by Bloomberg News.
I correspond with vendors and customers in China and the former Asian Tigers every day. No product inquiries, no purchases, no nothing except a frantic stream of e-mailed incoherent sales pitches, pleading with us to use their PCB assembly services. China is hurting bad, and I believe the GDP statistics are a lie.

7 comments:

Anonymous said...

Paul writes,

"Timothy Geithner, President Barack Obama’s nominee for Treasury secretary, said yesterday that China’s currency manipulation was a “significant issue.”

“It’s important for the United States and for the global economy that our major trading partners operate with a flexible exchange rate system and that market forces determine the level of those exchange rates,” Geithner said."


Lord Geithner, Son of Paulson of Goldman Sacs and 100 trips to China, is just doing what Bill Clinton called, "Boob Bait for Bubbas". (That's us folks)

tesla said...

I don't believe their growth estimate either. Their economy is based on exports and that has obviously fallen off a cliff. I guess the regime needs to keep the charade going for as long as possible.

Anonymous said...

Another interesting article on this point:

http://www.telegraph.co.uk/finance/4229198/Shipping-rates-hit-zero-as-trade-sinks.html

Aslak said...

Keep in mind that China reports quarterly growth based on the same quarter in the previous year as opposed to the previous quarters like most countries do. That means GDP growth sounds bigger than it is.

Funny Circus Bears said...

I do business in China.

If you are morally pure you CANNOT do business their and you will become frustrated and angry as you figure this out!

tesla said...

So Funny Circus Bears,

We can conclude that you are not morally pure :-)

Funny Circus Bears said...

CORRECT.