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Whistleblower Forces China To Come Clean Over Data Manipulation
It seems yet another conspiracy theory has become conspiracy fact thanks to a Chinese whistleblower. While the shrodinger-like nature of Chinese data has been keeping the market guessing for the last few years, the disconnects between hard-data (e.g. electricity production) and government-supplied surveys have been, at times, ridiculous (leaving aside the un-manipulated craziness of arbitrage-driven trade data). As the WSJ's China Real-time reports, in an unusual move, the National Bureau of Statistics – clearly frustrated with the lies, damn lies – has recently outed a local government it says was involved in a particularly egregious case of number fudging, providing rare insight into just how we’re being deceived.
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Figures on everything from inflation and industrial output to energy consumption and international trade often don’t seem to gel with observation and sometimes struggle to stack up when compared with other indicators.
How the figures are massaged and by whom is as much a secret as the real data itself. But in an unusual move, the National Bureau of Statistics – clearly frustrated with the lies, damn lies – has recently outed a local government it says was involved in a particularly egregious case of number fudging, providing rare insight into just how we’re being deceived.
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According to a statement on the statistics bureau’s website dated June 14 (in Chinese), the economic development and technology information bureau of Henglan, a town in southern China’s Guangdong province, massively overstated the gross industrial output of large firms in the area.
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An investigation by the state statistician into a sample of 73 out of a total 249 firms counted in the data found that 38 were too small to be counted as large firms and so shouldn’t have been included, and a further 19 had either stopped production, moved out of the town or otherwise ceased to exit.
The statement said that 71 companies surveyed by the statistics bureau had industrial output of 2.22 billion yuan ($362 million) in 2012 in total, but that the local government recorded it as being 8.51 billion, almost four times as much as the actual figure.
The data was supposed to be contributed by the firms themselves using an online platform. Instead, employees of the Henglan economic development bureau entered the figures themselves from their office, the statement said.
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The National Bureau of Statistics said that it pursued the Henglan case on a tip from a whistleblower. How widespread the problem is elsewhere in the country is anyone’s guess.
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China GDP growth for 2014 should be 46%. Yep! That's the ticket!
46%? Why not a nice round big number like 50000%.
Whistrebrower! Ries! Damn Ries!
For years I been saying that every Conspiracy is ultimately proven true. Even used the terms transitioning Conspiracy Theory to Conspiracy Fact.
But that shit is now redundant, obsolete and oxymoronic.
There are no Conspiracies
They're all just plain fucking Fact.
I've decided the term Conspiracy Theorist should cease to be used (as its clearly an ad hominem attack, just like labelling someone who criticizes the policies of the gov't of Israel or the Fed is anti-semitic).
The replacement term I suggest is: Critical Skeptic
And the Critical Skeptic (I like that term) realizes this as brilliantly described by Charles Hugh Smith:
Those who control the vast majority of assets, wealth, and tools of persuasion have the most to gain from a continuing belief in the system's soundness and stability. Thus their defense of the system which serves their interests above all else will be fierce and unremitting.
The human mind harbors a bias for what I call independent agencies, a bias which finds full flower in conspiracies both real and imagined. Ancient humans saw an independent agency of fickle gods who punished or rewarded human supplication with drought or rain. All human groups form loose confederacies, alliances and "secret societies" (such as cliques in high school) which outsiders rightly identify as conspiracies formed for the benefit of the members.
This bias to perceive independent agencies has a selective advantage: the ability to discern causal agents and agencies offers substantial advantages over a passive perception of chaos/randomness.
Why bring this up now? Only to note that the “Power Elite” or “Plutocracy” is not a conspiracy in the formal sense of a membership which gathers like the Bohemian Club or even an informal assemblage such as the Bilderberg Group. "Membership" is granted solely by great wealth and control of productive assets; political influence flows from that.
People who control, say, $100 million or more (via family ownership or managerial position), tend to meet one another socially or to do business, and while they jockey for advantage within a group like the rest of us, they form a small class of citizens possessing virtually unimpaired political influence.
Thus in describing a Plutocracy I am not positing a semi-formal conspiracy but simply a financial elite which controls some 2/3 of the productive wealth of the U.S. This is simply a statement of fact. Their collective self-interest is in maintaining the conceptual, legal and financial systems which enable their continued dominance of wealth and influence.
So David Ickes transdimensional shape shifting reptiloids running the world is true?
Specially that one - also, it must be true, since I've seen it on tv...
So you work for the 'economic development bureau'.
Whats your job? Fudge the economic data! Maybe I am missing something, how is that economic development again?
Release the Ninja's to take care of this traitor
Ninjas? Wouldn't that be Japan?
Hey, it's all asians, to me - if I squint, I can barely tell them apart, from where I stand...
LOL - it was a sarcasm...
So we have confirmed what everyone with a brain already knew. Which means that 99% of everyone in the market will be shocked and suprised by this.
I will bet the statistics somehow relate back to credit lines available for local banks to make loans. There is always an incentive to fudge, why else fudge ?
Blow whistle in China now!
Win floating pig.
Yes, exhale vastly superior to inhale most days.
Sounds deflationary to me.
Number fudging is happening in the other China too. (the USA)
Shocking!! You mean to tell me that that another goverment isn't being truthful? Unbeilievable...next thing you'll tell me is that it actually isn't for the children.
I will never understand the Chinese. Why would a government entity ever follow-up on a tip from a whistleblower with an actual investigation? I say, better to investigate the tipster, ruin their credibility, destroy their career, hopefully precipitate a personal crisis such as divorce, or losing access to their children.
So how long will it take for everyone involved in this lie to end all lies of a story be exacuted as a trator? What cha think 2 weeks?
That's the American Way!
STARVE THE BEAST!!!
This is like a global "come to Jesus movement"
That Snowdon is stirring up shit everywhere. Go boy goooo.
China is run by communists. We know how that story goes.
Empty city anyone? Perhaps an empty shopping mall instead?
Shrewd move... This should give China a taste of what it's like when 'Truthy' people (Whistle-blowers) embarrass a regime. That should sour them to Whistle-blowers in general, if that's the intention.
Speaking of whistleblowers, try this one. http://www.boilingfrogspost.com/2013/06/19/podcast-show-112-nsa-whistleb...
Wow. they even steal our lies...
hmmm
"Monkey sometimes have Too Big Ears."
--Old Beijing Proverb
For the Chinese government it could be their 'out' excuse when they try to explain why they're in a depression: "Who could have seen this coming? Everyone was lying to us about how great things were going." In America, the other way around is the case.
My take as well. They've known all along this was happening (every business of significant size has a party member in a key position who reports back to the central commitee). The fact that they've gone public means they've reached some sort of watershed. I expect to see more of this in the weeks and months ahead.
Think you read this right...the whistle blower was instructed to do so....he had been placed in that position years ago and told when you find a dead sparrow on your doorstep one morning, you are to blow the whistle you are now being given, should you accept that mission.....
Oddly the USA is getting as bad as the communists!
For every action there is an equal and oppsite LIE!
Aren't we fortunate to live in the US where there is no data maniputation, where we can believe unemployment numbers, inflation numbers, GDP numbers, where the currency is not manipulated, where interest rates are not manipulated, where the stock market is not manipulated.
Heck of a BOOM coming down the pike.
The top Communist Party officials were lied to by the underlings, just like Mao was lied to about the tens of millions of starving people. The only people who believe this rubbish are the Chinese themselves. It is quite an eye-opener to talk to a typical Chinese and realize how truly ignorant they are about their own country as well as the rest of the world. They have an exaggerate view of themselves, their power, and their history. They will overextend themselves and come crashing down, count on it.
How much do you want to bet that the Chinese hacked the BLS in order to figure out how to properly issue fake statistics to support their central planning department?