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China Industrial Growth Slows, Power Generation Negative 1st Time in 4 Years
Townhall.com ^
| September 14, 2014
| Mike Shedlock
Posted on 09/14/2014 11:46:13 AM PDT by Kaslin
China's Economic Numbers
- Industrial Output: +6.9%
- Power Generation: -2.2%
- Retail Sales: +11.9%
- Fixed Asset Investment: +16.9%
- Mortgages issuance: -4.5%
End of the Line for China's Growth
That set of numbers should raise concerns about overheating, not worries over economic slowdowns.
Yet, "The government must take forceful policy measures to stabilize growth," said Li Huiyong, an analyst at Shenyin & Wanguo Securities in Shanghai.
It's time to be realistic. China cannot and will not grow at 7% forever.
Stimulate Now, Crash Later
Calls for more stimulus with the above set of numbers is beyond ridiculous given China's vacant malls, massive pollution problems, unused rail lines, reckless investment in SOEs, and even entire vacant cities.
Malinvestment is already rampant. Additional stimulus now to meet arbitrary growth targets will cause a crash later. China will be lucky to average 2% growth for a decade. Outright contraction in some years is not out of the question.
TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS:
1
posted on
09/14/2014 11:46:13 AM PDT
by
Kaslin
To: Kaslin
America can only buy so many plastic fake dog turds before everyone has enough to last a lifetime.
2
posted on
09/14/2014 12:31:48 PM PDT
by
Rodamala
To: Kaslin
China, crashing according to popular propaganda since 2007 and still generating.
3
posted on
09/14/2014 1:48:49 PM PDT
by
familyop
(We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
To: Kaslin
"Industrial Output: +6.9%"
Yep, looks like a collapse.
"Retail Sales: +11.9%"
Oh, yeah--"overheating!" Those Chinese spendthrifts, they just don't know how to be frugal or save.
;-)
4
posted on
09/14/2014 1:52:44 PM PDT
by
familyop
(We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
To: familyop
Re: China is crashing!
Waiting for this really has become kind of ridiculous.
However, in terms of productivity, China still is a Third World country.
American manufacturing employees produce six times more value than their Chinese counterparts.
And in agriculture, Americans are about ten times more productive.
And, in sharp contrast, the 20 year stagnation of Japan’s economy was predicted by exactly nobody.
To: Kaslin
6
posted on
09/15/2014 7:04:41 AM PDT
by
blam
(Jeff Sessions For President)
To: Rodamala
I don’t have nearly enough of those, do you think I can get a real deal on ten or twenty thousand more now? I also need about five hundred of the “Big Mouth Billy Bass” singing fish plaques, I want to cover the entire walls of a 17 x 28 foot room with them. I am known for my exquisite taste in decor. The only thing I refuse to put on the walls of my dwelling are pictures of Democrats, just too disgusting.
7
posted on
09/15/2014 12:44:50 PM PDT
by
RipSawyer
(OPM is the religion of the sheeple.)
To: RipSawyer
I dont have nearly enough of those, do you think I can get a real deal on ten or twenty thousand more now? I also need about five hundred of the Big Mouth Billy Bass singing fish plaques, I want to cover the entire walls of a 17 x 28 foot room with them. I am known for my exquisite taste in decor. The only thing I refuse to put on the walls of my dwelling are pictures of Democrats, just too disgusting.It would seem you have 476 square feet of space on the floor for fake rubber vomit too! The ceiling may be tricky.
8
posted on
09/15/2014 2:06:07 PM PDT
by
Rodamala
To: Kaslin
That doesn’t look like an economic slowdown to me.
Industrial Output: +6.9% (more product)
Retail Sales: +11.9% (more money made)
Fixed Asset Investment: +16.9% (more equipment purchased)
It does look like they may be getting more efficient.
Power Generation: -2.2% (less power needed)
Mortgages issuance: -4.5% (less space needed)
These all looks like what happens to an economy that is automating.
9
posted on
09/15/2014 2:18:07 PM PDT
by
toast
To: zeestephen
10
posted on
09/15/2014 3:10:45 PM PDT
by
familyop
(We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
To: zeestephen
Here's where the jobs with adequate incomes are--almost all of them. Such employment allows plenty of time and money for the contemporary political class to regulate and legislate against productive activities in the formerly employed private sector.
Leviathan (Uncle Sam employs more people than you think) National Review ^ | 02/03/2011 | Iain Murray
"
...nearly 40 million Americans employed in some way by government."
Heavy Hitters: Top All-Time Donors, 1989-2014http://www.opensecrets.org/orgs/list.phpAmerican Fedn of State, County & Municipal Employees $60,949,129 [Democrat] 81% [Republican] 1%
11
posted on
09/15/2014 3:15:41 PM PDT
by
familyop
(We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
To: familyop
Yes, I know that China is the “largest” manufacturer.
My point was...
China has about 100 million manufacturing workers.
In the USA, that number is about 14 million.
But, the value of American output is only 10%-15% behind China, even though China has 7 times more workers.
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