China’s GDP Growth Is a Total Lie

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Top Tier Gear USA

CHINAFLAGFIX

I think it’s safe to say that anyone who thinks the United States economy is on the road to recovery, is drinking some serious Kool-aid. As organizations like shadowstats have shown time and time again, our government likes to fudge the numbers on a regular basis. They think they can keep the party going indefinitely, so long as they convince the world that everything is just fine.

Of course, the United States isn’t the only country that’s doing this. Heck, it wouldn’t be surprising if we found out that most governments falsify their economic data. However, it’s a little scary to think that maybe the world’s largest economy isn’t the only one lying to the world. In fact, the world’s second largest economy is definitely faking their suspiciously consistent growth numbers.

“You can’t trust the numbers,” Bill Miller, CEO of LMM Investments, told a room full of investors at CNBC’s Delivering Alpha Conference this week.

Miller spoke on Wednesday, just hours after China announced that it once again hit its gross-domestic-product growth target of 7%.

This despite the fact that its economy seems to be experiencing a major slowdown.

But after 25 years of watching China hit the mythical 7% mark without fail, analysts understand the charade.

There are dead giveaways everywhere. The most obvious way to tell that China’s books are cooked, though, is by looking at how its neighbors are faring.

Miller noted that Singapore’s GDP has dropped 4.6% in just the last quarter, and that their manufacturing sector is down 14%. So why is that so telling? Because, Singapore does a lot of trading with China, and the contraction of their manufacturing industry is being caused by a lack of demand from the Chinese.

You can also look to Australia, another one of China’s major trading partners. They’re also experiencing a significant decline in exports.

But that’s just what’s going on outside of their country. When you look at what goes on in China itself, it’s hard to believe that they would still have consistently high growth numbers. It wasn’t that long ago that their stock market tanked by more than 30%. I can’t recall a single instance where a stock market fell like that, without it causing a contraction of that nation’s GDP.

And finally, China’s debt to GDP ratio is off the charts. While a large debt won’t kill the economy if it’s in the process of being paid for, China is experiencing quite the opposite. Their debt is actually increasing faster than their economy is supposedly growing. In 2008, their total debt, which includes business loans and household debt, amounted to 125% of their GDP. Today, that number stands at 207%.

That means that even if they’re not faking their growth numbers, their GDP is still a lie. Their growth is still being fueled by debt, which means that in the big scheme of things, it’s not really growth at all.

China is just like the United States and the EU. They’re just another massive world power that is using their economic clout to throw their weight around the world stage. And that economic clout is a big lie. When the world figures out how insolvent and unsustainable these nations really are, their house of cards is going to crumble.

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Contributed by Joshua Krause of The Daily Sheeple.

Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger .

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  • Frank Energy

    I thought this was a joke, just something made up to take a pot
    shot at the bama, then I Googled it and found it on Whitehouse website

    He said this at 4 PM, after the attacks.

    https://www.whitehouse.gov/the-press-office/2015/07/16/statement-president-occasion-eid-ul-fitr

    • sunshine

      OMG, he has some nerve! Those “church burnings” were accidents, it’s been proven that they weren’t any sort of racist thing….UGH. We never watch TV but did turn on NewsHour last night and guess what?? ONE picture of the shooter for a few seconds and then nothing. No constant trumpeting of him being (black) Muslim, no cries of racism or religiously motivated, and I’m certain that trend will continue. TYPICAL.

  • SovereignPatriot88

    These days when someone says “It’s not me, it’s the rest of the world” it’s doesn’t sound so sarcastic anymore. The world is a big twisted place.

  • Nexusfast123

    GDP figures are a fiction. The Chinese figures are more than likely fictional. In the US, UK, etc, GDP figures are a fiction and will prove so when these economies collapse. These are soufflé economies as financial services create nothing.

  • What about our 18 trillion? There are no close seconds to us.

  • James

    We have took notice that new steel from China. Cost less than used steel from the scrap yards. Very strange for such to happen. As usually used steel from scrap yards is melted down to make new steel. So they are selling new steel at a loss and dumping it. There is growth with cheap steal. Being bought by Government money to cover the loss.

  • 3d printers are on the way down in price! Once people have those they’ll make their own cheap parts, products.

    • Razedbywolvs

      Made an air filter for a mini bike and 2 Dial Caliper holders this week… and broke a Dial
      Caliper. Dam Chinese!

      • I hope you don’t mind me coming to you for advice if/when I am about to purchase. That is so cool that you can self manufacture products…. oh the possibilities…

        • Razedbywolvs

          Of course I will help.
          My last detailed post on 3d printing I left out an option because
          I did not know the skill level of the person asking. Don’t want to recommend something that people will have a hair pulling experience with.
          Building from a kit reduces the price by a BIG margin. Given your background in RC and small electronics/programming I think a kit would be no problem for you.
          https://www.3dprintersonlinestore.com/diy-kit

          • I never knew that even existed, thanks so much!

  • Roddy Pfeiffer

    It is part of China’s plan to reduce its dependency on exports and increase manufacturing that targets its growing middle class. The huge amount of people buying new homes (they are sold as shells) and all the necessary to finish them is huge. It has slowed down a tad, but he overall sales numbers are huge.

    The article also mentions the stock market “tanking 30%”. Here are two long term charts of the Hang Seng Index and the Shanghai Composite Index. Show me where there the market “tanked”, other than in the western press.

    http://finance.yahoo.com/echarts?s=^HSI+Interactive#{%22range%22:%22max%22,%22allowChartStacking%22:true}

    http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{%22range%22:%22max%22,%22allowChartStacking%22:true}

    • Razedbywolvs

      Im sure all those people who were living in Nail Houses do need new homes. Good thing they have to buy new shell houses. If they survive the demolishing of the old home. The middle class does look bigger on paper, wen you kill the lower class.