there is a lot of smoke and mirrors in china's official statistics. for instance they publish their quarterly results the day after the quarter is completed!
anyway, while acknowledging that they have managed to keep their economy going nicely over the past few years -- which i something i had been extremely sceptical about, esp considering their banks' bad debt -- i now have to admit that there's something useful going on in china economics-wise.
still, i believe the chances of a hard landing are quite good.
2 comments:
China's command economy attempts to reign in inflation are absolutely unlikely to work. As long as the economy looks like it has momentum, then it's very easy for downsides to remain completely camouflaged and hidden. It's only when economic slowdown begins to be felt that the cracks and blemishes get truly exposed.
PLANNING is a waste of time. USSR learnt it long back. We all know that even the best of planning depends on mercy of fate.
Chinese commies are likely to learn that in a few years from now....however, hopefully, in the meantime they would make a complete mess of chinese economy (they can take lessons fron Indian National (?) Congress...if they ever need).
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