Monday, December 15, 2008

China - Free Falling

The U.S. government and the Chinese government have been playing a game of who can be most successful at hiding the man behind the curtain. Both have worked exceptionally hard at various manipulation. Well at some point private sector measurements reveal the truth. China's electricity usage tanked in November. If your not using electricity, I would venture to guess you aren't producing and that GDP isn't growing. Overall output according to the government did increase. Not sure how considering the other data points. Even this output showed an alarming slowdown and was massively below economist forecasts.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ.iVg8IcUJ4&refer=home

Industrial production is plunging around the world as demand dries up. China’s electricity output fell by 9.6 percent in November from a year earlier, today’s figures showed. Pig- iron production fell 16.2 percent. Raw steel declined 12.4 percent. Steel products tumbled 11 percent.

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