The China Hustle
Hyperbolic Dragon Puffs…and Squid Suckers.
Since it began publishing (um, falsifying) quarterly GDP stats in 1992, China has never reported growth below 6%, year-on-year, in any quarterly time scale. But it straddled the razor’s edge this morning, revealing — on a ‘pro forma basis’— that the economy grew at a wholesome 6% in the past three months “when computed as a rolling average.” Please.
The trade war has eviscerated China’s exports. Firms there are going belly-up fast. Tech companies are scrambling in the face of scarce capital, scandals and competition. Sales have tumbled and profit margins have compressed. Hong Kong is imploding. The crackerjack macro economist Xiang Songzuo, now under house arrest for saying that commie “number crunchers routinely fudge the facts” and “China’s GDP is actually around 2.2%” is correct. ‘Facts‘ are a funny thing when the data sets (and apparatchiks compiling the data) are all purposefully blurred and warped in favor of something more sycophantic and ‘copacetic.’
President Trump’s asymmetric foxiness has foiled the PRC’s industrial policy (remember ‘Made in China 2025‘?) and hampered its hegemonic dreams (Sun Tzu – 孫子 – is pouring praise on POTUS from the Upside Down realm for his strategic calculus). And construction was restricted ahead of the commie regime’s 70th anniversary on October 1st (construction in China is a ginormous air polluter, causing hazy skies, gross toxins and gustatory yukiness).
Aggregate output has been crimped hard. TFP is a joke. ROI in China is incrementally difficult to deliver. Fixed asset investment is below 5%, etc. Hong Kong, the mainland’s main source of dollars, is in contraction mode bigly. Even Huawei with its snazzy new operating system, ‘Harmony’, has been hacked and subverted by the NSA and GCHQ while its CFO languishes under house arrest in Canada.
Frazzled China is now arresting American English teachers on trumped-up charges and chastising Dior, a daffy French fashion house, for not including Taiwan on its ‘China stockist’ map/list. It is currently trying to bribe America’s NBA, with charlatan and chief hypocrite Lebron James being the butt of a huge amount of criticism from freedom-loving folk and former fans (especially in Hong Kong – below). Adam Silver, the NBA’s slinky ‘commissar’, has been wobbly and way off-kilter with respect to American values abroad.
China has been reluctant to fight the slowdown with more aggressive interest-rate cuts because corporate debt is stratospheric and inflationary pressure has pierced the +3% threshold (helped by feverish pork prices and the insane ‘credit impulse’ courtesy of the PBOC). The screwy IMF now expects growth next year to fall below 6% not just for one quarter, but for the year as a whole. VIVISXN reckons China’s GDP is actually around 3.2% or below. The whole place is glitched-out and getting worse! Read this.
Like its ‘stealth drone’ decoys (replicas of US weaponry) and global ‘cultural heft’, China’s official numbers overstate its true pace of innovation and productivity, both past and present, and its status in the new world order. Its GDP stats are abysmal and America’s prickly foreign policy is accelerating China’s geo-strategic decline. But its growth data has always been fake as f^*k and even with a fresh round of stimulus and ‘friendlier’ (totally superficial) posture toward its trading partners, China’s economy is still rattletrap and tumble-down. Fade the China trade asap!
This post was authored by VIVISXN’s proprietary AI Thought Bot®
Photography Chen Man + Wikimedia Commons
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