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Furious China Lashes Out At Critics Of Its Rigged GDP Data
That China has been fabricating its economic data has been clear to virtually anyone who has cared to look at the epic discrepancy between China's goalseeked headline GDP and its consistent components (a recent snapshot was shown in "Beijing, You Have A Big Problem - In Ten Charts").
However, while the sellside has been grudglingly willing to play ball with data that is as centrally-planned and as artificial as China's stock "market" the recent disclosure of the Q2 GDP print of precisely 7.0% may have been the straw that finally broke the camel's back, leading to a chorus of revulsion and complaints from even the "most serious people" that China is cooking its books.
The reason, as we showed previously, is that China is now resorting to such childish manipulation methods that it has become impossible to ignore them even among those who have tacitly agreed to stick their heads in the sand, and diplomatically talk up Chinese numbers. Which in turns lead to a narrative breakdown and for once, China has been faced with official allegations it is openly fudging its economic growth statistics which come at a time when many suspect Chinese growth is flat if not in outright decline.
So how does China respond? One way is petulantly protesting too much, and in the process admitting it is all fake:
- CHINA'S GDP 'NOT OVERESTIMATED', NBS SHENG SAYS
But a far better way is by writing scathing essays that lash out at all those who dare to call a spade a spade. Such as what this Global Times op-ed has done. Because while the US is doing its best to manipulate its own economic data with the same facility as China, it still has to learn a thing or two about the propaganda required to defend such fabrications.
So without further ado here, straight out of China, is the reason why...
Accusations over GDP figures are frivolous
Several mainstream Western media outlets have questioned the authenticity of China's second quarter GDP growth of 7 percent, claiming that the National Bureau of Statistics (NBS) faked the figures to boost investors' confidence. They have this skepticism simply because the GDP growth rates in Q1 and Q2 happened to be identical, which also coincides with China's yearly growth target of 7 percent.
The questioning does not display logic and is even frivolous. It is disappointing to learn that the Western media's displeasure with the GDP figures reveals the wish for slow growth in China.
Working out the statistics for the Chinese economy is immensely challenging and it is hard to be absolutely accurate. No wonder the West has questions about the methodology. But different methods will not affect the authority of the NBS figures.
It is alluring to have economic statistics made on the government's will, which perhaps exists widely, but the Chinese government can resist this temptation. As it is illegal to fake NBS data, the assumption that the Chinese government can easily exert its will on the NBS actually misrepresents the government's operation model.
Despite the lowest GDP growth rate, the Chinese economy is not in its hardest times because the slowdown has greatly declined and the public has adapted to the current growth and even a lower rate. As faking a 7 percent figure takes more risk than releasing a lower but real one, China has no motives to forge the data.
The NBS has released numerous economic figures that may not look entirely ideal for China at the time. And today, the anti-corruption campaign has made all the officials more aware of the cost for any misdeed. It is hence groundless to suspect the NBS faked its statistics.
Since the number is 7 percent for two consecutive quarters, a few foreign media outlets were getting jittery. Accusations of crooked statistics are based on unprofessional questions, almost cheap complaints. The growth goal set by the government is around 7 percent, not 7 percent exactly. Since the third and fourth quarter's growth will probably beat it, the yearly data will likely be higher than 7 percent.
Doubtless, questions about economic statistics also stem from a lack of government credibility. Agencies that are supposed to be credible are under pressure to prove themselves.
Western media often paints a different picture when explaining the Chinese economy. However in hindsight, they either misread the Chinese economy or make wrong conclusions in most cases. They should set the record straight now.
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Rigging GDP data, rigging the stock market, rigging it's gold reserves, rigging the housing market.
Is there anything that China does not rig?
Sum Ting Wong!!!!
Na Ting Wong Wi Ta Ge-De-Pe!
Because US / European data is all clean.
Everyone is faking data because they've all got out of control debt fiat money system in collapse.
They copy from the best.
Methinks he doth protest too much.
The entire world is a debt based fiat experiment. Since China has pegged their dollar to the USD, how can they NOT be rigging their data? The flagship is failing, so how can anyone pegged to it be honorable? Seems logical, no?
Or did I miss the "one country in the world is honorable, while all others are not" memo?
Shouldn't furious China rash out?
Be mindful that they can still 'lash' out...
I hear dragons have a very nasty tail...
(That's read 'nuclear subs' for the eHerd)
if this goes on for a few more years i think i will lose my mind
heh...I know how you feel, but it's our own fault for taking official figures and the government so damn seriously. We keep waiting for them to get honest, and you know what? They're just going to keep getting worse and worse until they collapse under their own empty weight.
The beauty is in learning how to live around and away from them, to the point that all their lies can safely be ignored. I'm working on it...
Too late for some of us
Rule #1: NEVER TAUNT A DRAGON!!!
Rule #2: NEVER FEED A DRAGON!!!
Rule #3: WEAR A FIRE PROOF SUIT!!!
If all else fails, enjoy the madness for a while...
http://galeinnes.blogspot.com/2015/07/social-herds-economic-turds.html
Ho Lee Fuk!!!
That is always funny.
What China needs to do is calculate all the nefarious currency activity occurring in the "Karaoke" parlors in Shanghai. That will get their GDP over 10% again in no time.
Really. Doesn't Europe calculate hookers and blow in their GDP numbers?
disclaimer: I've been to China numerous times....I love traveling in China and I have many Chinese friends (in China & in the US)
having said that, no one in China trusts their government, so there's no reason anyone else should.
However...if you spend any time at all "on the streets" of China (big city, small city, it doesn't matter). There is so much truly unbridled capitalism (yes, I said capitalism) going on, that the true GDP number would be absolutely impossible to calculate. From the guy selling cherries, or the taxi driver, or the lady selling balloons at the hospital.....these are all cash businesses.
no freaking way to accurantely measure this activity.
Lived in Shanghai for 3 years and traveled extensively in country. How do you calculate the rose lady outside the Brazilian restaurant in Pudong. Heck, she even try to sell her two-year-old child to me.
You are absolutely correct.
Did the kid have good teeth?
Long-term dental costs are the real deal-breaker in child purchases.
Unless you're just using the kid for organ harvesting - but Soros and the triads pretty much have that market locked down.
Of course the "Off the Books" money is hard to calculate.
Unless the argument is that the "Off the Books money" exploded while the "On the books Money" declined.
Hence it should be irrelevant since it was not included in previous GDP estimates. My assumption ofcourse is they do not include it.
If they do include it , they could fudge all they want since there would be no way to prove or disprove the number.
Maybe the government knows that and guestimates to 7 every time.
<<There is so much truly unbridled capitalism (yes, I said capitalism) going on, that the true GDP number would be absolutely impossible to calculate. From the guy selling cherries, or the taxi driver, or the lady selling balloons at the hospital.....these are all cash businesses. no freaking way to accurantely measure this activity.>>
Wow. That sounds so... healthy.
I remember... oh, long, long ago... when one could have said the same of the 'west'. Untold little businesses, even hamlets were so productive and everything local, with little to no central interference. Then again, I'm looking forward to the return of that economy here, too. Keep pumping up that fake money and those fake markets, boyz! Keep driving all the real production back out here to the margins...
European hookers are great for blow-jobbing the GDP numbers.
Never Trust the Chinese!!!...
That is not saying anything bad about their culture, but I've heard this from people that have lived and worked with them. Fun people, just don't trust them.
The land of Fakes, if it's fake it's from China, just like they are creating a fake version of the western stock markets and year over year growth. The sad thing now is they are faking a fake. Still all things considered...
A fake is a fake.
I've ordered several things directly from China in recent months. Nothing expensive, just cheap backups for stuff I already have, jeweler's loops, small scales, calculaters... Not one thing I received was as advertised. Not one.
Small scales??? Sir, you are clearly a drug dealer and your bank account shall be frozen and seized forthwith.
After the great reset,
there will be many opportunities for multi-tasking;)
There are no fakes - there are only buyer and sellers. All the rest is noise.
The Chinese have been masters of commerce for the last 8,000 years (give or take). Funny how Westerners project their guilability on the Chinese culture as a character flaw.
yes, don't get me wrong...I don't blame the chinese one bit for selling knock-offs. I've said it on ZH before and given examples...like, the reason why the old gray swingline stapler is now extinct. We used these staplers, literally, for 15 years in our elementary schools....it was our stupidity and the Chinese opportunist that said "dumb America's put this stuff out to bid, and select the lowest cost item...LOL...not our problem if it only last for 15 days rather than 15 years" and we (American's) bought it, and we're still doing the same stupid thing.
I've heard several times that the Chinese-made products destined for Chinese (and some other) markets are of much higher quality than those they sell to 'western' markets. I can't say whether that's true but it makes sense to me. After all, why bother with quality to a customer whose only interest is 'price'?
Renfield,
The good stuff gets sent to America. I kid you not. We just returned after finishing a two and a half year contract over in southern China. The Chinese people are so fed up with the cheap crap that is sold over there. A big time day trader told me recently that part of the Chinese govt plan to go to a more domestic consumption economy includes product quality for domestic sales. Chinese people will pay more for products from the US. They freely admit this. The stuff we bought while living in China might last 15 days or might not work at all straight out of the package. They don't trust each other and they don't trust the products made there.
Interesting. Thanks for the on-the-ground experience.
Imitation is the most sincere form of flattery...
Well, I'm glad that's cleared up now.
BTFCFND, bitchez.
(BuyTheFuckinChineseFakeNumbersDip)
As it is illegal to fake NBS data, the assumption that the Chinese government can easily exert its will on the NBS actually misrepresents the government's operation model.
It's not illegal if WE do it......
I thought these numbers might be rigged but then I saw how fundamentally sound and unrigged their stock market is, so I give them the benefit of the doubt now.
Lmfao
Rooks rike someone got caught in a Rie
Mission Accomplished.
--------------
It's time to bring it down.
China's "childish manipulation methods " only exceeded by Western central banks and MSM.
rigged? isnt that the planetary normal now?
Bullshit article.
If China was angry, they'd be telling you how rigged your system is.
The Chinese are in fact beneficiaries of your corrupt system.
Buying PM and FOOD at basement prices.
Everyday is a constant diversion from the truth on this site.
We see that the Chinese Commies have learned absolutely nothing from America's multi-decade experiment with Communism.
Too bad. It'd be nice to see somebody's civilization survive.
Everything is going to get a whole lot worse so don't woruy abooooooooohoo
Liar Liar Pants on Fire!
Liar Liar Pants on Fire!
It's far easier to list what isn't rigged these days.
Falling down - They lie to the fish
https://www.youtube.com/watch?v=iBy4X2rjF-k
that's a movie I should revisit.
Yeah it's a good movie, has some classic scenes.
Falling Down - Hamburger Scene
https://www.youtube.com/watch?v=zJs9p-VNORw
Falling Down - Korean Convenience Store
https://www.youtube.com/watch?v=a2YRMixW9u8
Falling Down - Golfing Asshole
https://www.youtube.com/watch?v=OSPZ0fCEetg
Falling Down - Phone Booth
https://www.youtube.com/watch?v=tfuy4YkIncs
Maybe they should start shorting our market and see how weeee like it!
Every country/government in the world lies and fudges numbers. USA is one of the worst. When was the last time you saw a MSM story about the 97 million people not working but somehow eating in the US? All they do is co-opt the media and the rest is easy. And with a vastly ignorant population like the USA it's like stealing candy from a baby.
now insert any country you like
Al governments are oooking their books and putting the best possibe spin on what for all is a downward spiraling situation. Over the years, due to the pesky necessity to actually appeal to voters, Western nations have with long practice learned to lie and propagandize in highly sophisticated ways. But China has never had to appease their population, just keep them under the heavy thumb of central power. Ruling by decree doesn't require sophistication in the arts of lying and propaganda.
i live here in the U.S.
im fascinated that OUR politicians accuse china of manipulating their currency. our entire "recovery" was based on a cheap USD orchistrated by a fed chief appointed by a repub (bush) and re-appointed by a dem (obama).
where jason ferguson (white house financial advisor) would never talk about the USD because he wanted the fed & treasury to have their "independance" (when it was going down), when it was going up, he made a point on CNBC to "guide" the fed to not raise rates and be cognisant of the appreciation of the USD and its effect on U.S. companies.
oh, and now lew is lecturing schauble on debt forgiveness.
meet the wealth re-distribution tool by the socialists; raise $ thru a debt offering & just never pay it back.
I've never seen a criminal that didn't go "full retard" trying to protect his innocence.
I'd wager well over 90% of jailed criminals are innocent.
It's good to be a narcissistic sociopath, when you enjoy destroying porples lives.
^^^
just like in shawshank - every guy in here didn't do it
anyone on the inside will tell you the same, that yes, the numbers are not real. but they are smoothed. simple as that really. the provinces have targets to meet, sometimes they go over sometimes they go under, with the system in place now though, it's very difficult to get away faking it all. so shit is smoothed out to meet targets, or go over a bit now and again. call it seasonal adjustment, cus that's all it really is.
Precisely the arguments of Adam Smith and Henry George. It is not the business of the state to meddle in the affairs of a shop keeper. Land tax alone is measurable, certain, fair and just, and allocated with the least distortion on the rest of the economy.
"Fitch-Moody's say China's stock`drop won't effect Economy" 7/16/15
http://atimes.com/2015/07/fitch-moodys-say-china-stock-drop-wont-affect-economy/
now,... where's the biggest #1 S&P rating agencies hiding its 'opinionated' dossier'? Could it have been already shredded into the global matrix...[?]
FWIW Dept: Quote --- Mao Zedong shortly after the 'PRC' of China
on Oct.1,1949 "The Chinese have always been a great, courageous and industrious nation; it is only in modern times that they have fallen behind. And that was due entirely to oppression and exploitation by foreign imperialism and domestic reactionary governments... Ours will no longer be a nation subject to insults and humiliation. We have stood up. (Chapter #3-- pg.37 :: 'The Hegemon Reawakens' "Hegemon" c.2000 by Steven W. Mosher
Quote#2 [pg 37-38] Mao Zedong:: In late 1949 Mao reserved special rancor *(?current to date?) for the United States, fulminating in a bitterly sarcastic speech called "Friendship`or Aggression" "The history of the aggression against China by U.S. imperialism, from 1840 when it helped the British in the *(???) Opium War *(???) to the time it was thrown out of China by the Chinese people, should be written into concise textbook for the education of Chinese youth. The United States was one of the first countries to force China to cede extraterritoriality... All the 'friendship' shown to China by U.S. imperialism over the past 109 years, and especially the great act of 'friendship' in helping Chiang Kai-shek slaughter several million Chinese the last few years--- all this had one purpose [according to the Americans]... first, to maintain the Open Door, second, to respect the administration and territorial integrity of China, and, third, to oppose any foreign domination of China. Today, the only doors still open to [U.S. Secretary of State] Acheson and his like are in small strips of land, such as Canton and Taiwan"
end Quotes! *jmo
Question! Does some of this not sound familiar with Japan getting the thumbs-up by the USSA and Obam/Hillary's 'Pivot to Asia' to build up Militarily since sixty-five years has past... a good ole WWIII seems appropriate for "Hegmonic Sake"?!?
As faking a 7 percent figure takes more risk than releasing a lower but real one, China has no motives to forge the data.
The Inscrutables are at it again.
I had to stop reading at "the west challenges the methodology of the statistics"
It's Friday. Gonna puff some sour after work and watch the open. Enough with the madness for a few days.
we have competing global ponzi's. Whos to say which is better? The best liar wins in that game.
I love this! So much here on display:
<<The questioning does not display logic and is even frivolous. It is disappointing to learn that the Western media's displeasure with the GDP figures reveals the wish for slow growth in China.>>
The Chinese think the 'western media' are wishing for slow growth in China? Do the Most Favoured Nation Chinese feel that the 'west' is not on their side? Now, why would that be?
<<Working out the statistics for the Chinese economy is immensely challenging and it is hard to be absolutely accurate. No wonder the West has questions about the methodology. But different methods will not affect the authority of the NBS figures.>>
So, if different methods do not affect NBS authority, then this is an admission that methodology has very little to do with the figures the NBS puts out. I think this is rather a telling admission, since "authority" must trump methodology per this statement.
<<It is alluring to have economic statistics made on the government's will, which perhaps exists widely,>>
...or on the government's 'authority', as JUST ADMITTED TO one sentence above. Implication in this sentence, again, however is that the 'west' are being hypocrites.
<<but the Chinese government can resist this temptation. As it is illegal to fake NBS data, the assumption that the Chinese government can easily exert its will on the NBS actually misrepresents the government's operation model.>>
Is it technically legal anywhere for an agency to do this? How is 'illegal' a deterrent for criminals? Technically, if the figures are later shown to be inaccurate, this simply distances the government from the agency and sets up the agency (or individuals at the agency) to take the fall. TBH I find this approach more credible than the government standing behind its agencies (and their misrepresentations) come hell or high water.
<<Since the number is 7 percent for two consecutive quarters, a few foreign media outlets were getting jittery. Accusations of crooked statistics are based on unprofessional questions, almost cheap complaints. The growth goal set by the government is around 7 percent, not 7 percent exactly. Since the third and fourth quarter's growth will probably beat it, the yearly data will likely be higher than 7 percent.>>
Here's our first heads-up that the figures for the next couple of quarters will be higher than 7%, and China will officially have a tremendous year. The Chinese bubble is not ending any time soon - or at least, not the bubble in official figures! This is a big middle finger to the doubters in the 'west'.
<<Doubtless, questions about economic statistics also stem from a lack of government credibility. Agencies that are supposed to be credible are under pressure to prove themselves.>>
Another little implication that the 'west' is being hypocritical.
Takeaway: The Chinese do not believe that the 'west' is anywhere close to on its side, and we can look forward to a ratcheting up of any and all figures from China, as a big FU to us. Reality or not, they have no intention of admitting anything to 'western' media anytime soon, and as far as they're concerned the 'west' can continue to wonder for its information. They can take NBS 'authority' or leave it b/c they ain't getting anything else. I agree with the headline: China is furious.
And now a word from...
Bi Da Fo King Dip
If anyone is interested in avoiding this type of outrage you may be interested in searching for a blog post I came across about 5 years ago. It was part of a professional's website working in Asia and addressed how to more effectively do business in Asia. I'm pretty sure it was titled The 8 Ways of Saving Face in Asia.
And on another positive note I want to thank each and every country throughout Asia for their outstanding job they've done at retaining both their cultural heritage and traditional medicines for so long. Especially in the light of the constant push towards replacing them with Westernized medicine. Each one has contributed and will continue to assist me immeasurable in my Intellectual Property and charity work. Below are only a very few basic examples from the East for those in the West that have any interest in looking into them. These are presented in no particular order.
Japan - Mushroom, Blue Green Algae & Seaweed research. You can find quite a bit through the University of Tokyo. Especially as they relate to Cancer. And natto. Not only it's fermentation benefits but nutrient benefits as well. I always admired Morimotosan's inspired work in cuisine. He provided a great example of merging East & West into new creations while simultaneously highlighting his heritage.
Korea - Fermented foods for health and the relationship to the gastrointestinal and immune system. I'd like to thank a wonderful young lady from your country for sharing her heritage with me many years ago and inspiring some of this work.
India - Ayurvedic medicine. And especially turmeric and its benefits.
China - Acupuncture - NOTE: This can also be applied to Cats, Dogs and other species for their health as well.
One charity I would like to create soon as a part of my IP work will provide a very cheap and easy way to help those affected by thyroid radiation damage manage their condition. Of course the children will have the toughest time managing this because it will likely be with them their whole life. But this can be applied to anyone of any age from anywhere like Fukushima or Chernobyl for example.
Found it:
http://webcache.googleusercontent.com/search?q=cache:ItyyfeFYUCgJ:www.cc...
Good article, too. Unfortunately, the link from Google was 'down for maintenance' so I had to use the cached version. The link above is the cached link.
"Trust us."
The old saying of the pot calling the kettle black.