Cargo containers shipped by freight trains of the China-Europe Railway Express are stacked at the Chengdu Railway Port. Photo: AFP
David P. Goldman, Asia Times: Washington is wrong about China’s economy
The US economy is weaker, and China’s stronger, than analysts believe
Americans want to believe that their economy is doing well and that China’s economy is doing badly, as President Trump keeps saying. One shouldn’t blame Trump for this – underestimating competitors is America’s national pastime.
A recent embarrassing example was a report by Wells Fargo analyst Roger Read featured on CNBC, claiming that a fall in the growth rate in China’s diesel consumption “is most likely tied to economic factors and the effects of the tariff ‘war’ with the US.”
As physicist Wolfgang Pauli once said, this isn’t even wrong. The fellow from Wells Fargo failed to observe that China’s rail traffic is growing 10%, year-on-year, which is also the rate of expansion of China’s rail network. The more China ships by rail, the less dependent it is on diesel trucks.
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WNU Editor: I am aware that China's use of diesel has decreased significantly in the past few quarters, and no, it is not because trains are replacing trucks to move goods. The majority of goods in China, like the U.S., are dependent on being transported by trucks. And that is going to continue for the foreseeable future. So no to the statement that China's economy is stronger than what many believe. But I do agree with the above post that the U.S. economy is weaker than what the stats are showing. A credit crunch is going to happen, and like all credit crunches it is going to slow down growth. The question that remains unanswered is .... when will this crunch happen?
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ReplyDeleteBob must be retired, unemployed or something with all the time he has to troll. What do you honestly get out of "..." in every post bud?
ReplyDeleteThe Chinese statistics....
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ReplyDeleteChina and the US depend on other nations. The problem for China is this: no one wants to continue doing business with them. I know soooo, so many companies that fled China over the years, seeing what's coming, the inevitable. It's full on authoritarian over there, getting worse by the week. Money is leaving, brain drain is happening and we all know how much the Chinese GDP is faked (see your own satellite data post a year ago, that suggested China may have overinflated their GDP by up to 30%.. that's massive - and the market has not corrected for it yet -- on top you have the Chinese housing bubble everyone knows is coming - the thousands of empty sky scrapers built during the rush times, now waiting to crumble down, on top you have China making enemies with pretty much every nation in the Asia Pacific..
ReplyDeleteChina's economy was predicted to overtake the US by 2025. This will not happen. Instead the Chinese economy is now HALF(!) the size of the US economy - and that is before the trade war and market corrections for all this BS .. and don't forget the TRILLIONS the Chinese owe -- this will be asked back by the European Union, the US and some Asian States (Japan) who suffered from this theft, IP violations and so on...
It's lights out in China very soon and this article was likely paid for by the Chinese gov :P
You have to be on the dumbest humans I've seen on this site. And there are quite a few. Well done
DeleteWhy make so obvious your trumpian dna?
ReplyDeleteAntiAss
ReplyDeleteDo you smoke crack all day long?
Antiroll soils his nappies
ReplyDelete