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Chinese Officials Admit To "Significantly Faking And Overstating" Economic Data
Slowly all the wheels of the legacy propaganda narrative are falling off, only this time dealing not with some ridiculous economic "recovery" tripe (for those still confused, the global economy just suffered its worst USD-denominated GDP collapse in 50 years), but with the credibility of Chinese data, which most have known is completely fabricated, only there was never an actual admission from within. Now there is.
According to China Daily, several local officials in China's Northeast region sought to explain dramatic economic drops in their areas by admitting they had faked economic data in the past few years to show high growth when the real numbers were much lower, Xinhua News Agency reported on Friday.
The report cited several officials in the region who acknowledged they had "significantly overstated data ranging from fiscal revenue and household income to GDP."
Three years ago Liaoning province's GDP growth was reported at 9.5 percent, but its current figure?over the first three quarters of this year?is just 2.7 percent. Jilin's growth was reported at 12 percent three years ago, but its current rate is 6.3 percent in the same period.
The revelation about the inflated figures came as the GDP growth of the three Northeast provinces ranked the lowest nationwide.
Of course, while the economy was growing, nobody cared that the numbers were absolutely ridiculous: after all, it confirmed the narrative of growth. Guan Yingmin, an official in Heilongjiang province, said local investment figures were inflated by at least 20 percent, which translates to nearly 100 billion yuan ($15.7 billion).
As a reminder, Heilongjiang province is where we reported recently a local coal miner, Longmay Mining Holding Group, the biggest met coal miner in Northeast China laid off a record 100,000 workers in one fine September day.
China Daily also notes that if the local financial reports were true, some single counties' GDP would have surpassed Hong Kong. An earlier audit by the National Audit Office found one county in Liaoning that reported annual fiscal revenues 127 percent higher than the actual number.
Again: as long as everyone was "growing", it didn't matter if the numbers were fabricated - in fact, the more made up the better.
Why? As a staff member in the Jilin provincial finance department, who asked not to be identified, told China Daily that in past years, local officials competed each other to lure external investment projects. They reported the promised investment value, whether it had been achieved or not, as the investment figure. So the bigger the "reported" growth, the higher the likelihood of being awarded the project, which in turn means millions in government funds being directly embezzled by corrupt local officials, money which would promptly then end up in some duplex in NYC, San Fran or Vancouver.
But why is all this emerging now? Simple: it is all the fabricated data's fault why the current growth (or rather, economic collapse) is so terrible:
"If the past data had not been inflated, the current growth figures would not show such a precipitous fall," one official was quoted as saying.
Brilliant: if only we hadn't made up ridiculously high data in the past, the comps to one, two or more years ago would not look so terrible.
What was left unsaid is that if "data had not been inflated", it would be negative and instead of 7% GDP growth we would be asking just how big China's GDP contraction will be this year.
We bring all this up in the aftermath of this weekend's "strong" Chinese industrial production and retail sales data because it too is completely fabricated and goalseeked. Only now there is no doubt.
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Well, you have to give them credit. Americans would never admit to doing this.
Well said. For if we were to say anything bad about it, it would be racist, bigoted and impolite exemplified by not only the thoughts but even the touch of your fingers on your Qwerty keypad, defining extreme micro-aggressions against the entire Chinee population and there's simply not enough space over there for everybody insulted, frightened and intimidated to have their very own personal safe cuddly space lined with yak hair and pig snot. So I'll simply say; "I fucking toldja so. Those little yellow bastards are scheming, dangerous untruthful Commie pinko bastards who're even copycatting our crony capitalism and doing it better and cheaper than we do. Only Donald can save us now" There. I said it. Floating dead pigs in the Yangtze for everybody! China, where all the kids are above average.
So when Is the USSA going to have its Mia Culpa moment?
When is MarketWatch going to profer theirs for pumping, "China leading the way financially for the wrold" shit?
No, no, no. You misunderstand. It was just that small handful of "rogue low level employees" faking the data. Everything else is absolutely truthful and accurate. Please move along, nothing more to see here.
Sounds like a "bullet to the back of the head" will be in order...
A chilling message to others.
Too bad Jon Corzine wasn't Chinese.
So when Is the USSA going to have its Mia Culpa moment?
It takes two (buyers-and-sellers) to tango...
http://www.zerohedge.com/news/2015-12-14/nobody-could-have-possibly-seen...
chi-mera.
Is Merkel Hitler's daughter? https://youtu.be/Sx2haIRJHeY?t=15m19s
I fake you rong time, onry 10 lemibi
Ahhhh . . .probably trained at Ivy League schools in Amerika.
Ho Gnu?
Pssst...they are still lying. The key is to deflate the (lie) bubble gradually.
<We have not begun to fight tell the truth....and won't until the lie is no longer effective.>
What they just did was infuse another lie with 'truth' by admitting to past lies.
JERRY: What about the breathing, the panting, the moaning, the screaming?
ELAINE: Fake, fake, fake, fake.
Mrs Cog doesn't fake it, right honey?
Um......Honey?
;-)
lol
No soup for you - one year!
I can live without the soup. The other thing........not so much.
this is getting very confusing, are these Chinese guys going to get 'erased' for lying about their numbers, or for admitting to lying about the numbers. I think 'admission' is the real crime here.
clearly they are mentally unstable - only wingnut conspiracy theory freaks believe governments lie
Governments always tell the truth, that's why I love Big Brother!
Jilin - home of some of my favorite ChiScam smallcaps. Those guys are the absolute masters at ripping off stupid Americans - they had it down to an art form.
more power to them! What kind of idiot buys a small cap stock from China, that sells a product they've never seen, to a customer they've never met, made in a factory they've never visited or even truly know if it exists...
...the Chinese laugh all the way to the bank at how stupid American's are. It's damn embarassing.
It looks like the dominoes are going to start falling!
Some more smoke and mirrors....
http://beforeitsnews.com/conspiracy-theories/2015/12/the-fix-is-in-franc...
Hory shet.............................................
Wei tu hai?
3 of the provinces you are comenting on are pronounced locally with a hard L you imbecile
China fakes it?
Oh come on! This is reary browing my mind!
So basiclly they are saying...Get ready for really bad news and losses in the economy
"We're in deep shit, and our empty ghost cities are even empty-er".
I should probably ship them some tumbleweeds .
Perhaps I shouldn't have asserted that I am "average sized".
Well, if you stand in front of one of those circus mirrors you can be huge.
shocking
Wi tu Lo = Fake the GDP
And yet, according to some (wet-dreamers and pump & dump shills), "China will be the one to take down King Dollar".
Good one. ROTF, LMAO.
Newsflash: China is in on the Ponzi scam, not to take it down. Chinese oligarchs are in the fiate game to get richer, not to make revolutions, FFS.
Agreed. They just joined the Western currency alliance (aka the SDR). There's still a bit of competition between members, but for the most part, the one-world government is coming together quite nicely.
Official statistics are a bullshit/fraud?
You mean in China?
I thought that the Chinese statisticians and economists were generally educated in the US at prestigious schools such as Harvard..
-Who the fuck taught them to lie and commit fraud??
Kruggers can't be reached for comment.
The Chinese government and its petty officials ALSO lie about economic statistics?
(like the U.S. ...)
(who would have thought)
Harbor Freight has a 11 Gauge Roofing Nailer for $99. Probably cheaper at the source factory in Guangdong.
Oh those sneaky lil Chinamen caught on to good ole U.S. capitalism. Talk fast and throw in a dash of bullshit and you can make millions.
"you can make millions"
By printing! Just like the US!
China Daily or Xinhua would never print this without direction / approval from the government.
it's because the numbers don't matter that much
i mean, heilongjiang, really? 20% of investment there is like 0.2% in guangdong
it's symbolic... it let's them hint or set precedent at some local corrupt officials lying on the economy without them actually lying about specific numbers that matter
This is what you get when international financiers of no fixed abode ally with a Politburo of no morality or care for their own kith and kin.
Cry, cry baby. Lick the City of London's jackboot.
Consequences.
Seasonally Adjusted
Okay, I'm heavily invested in Chinese stawks. I get to sue somebody because they misrepresented themselves so that I can recoup my losses from the fraud, right? Just like in the US, right? Am-i-rite!
If you party with Corzine, then yes.
Go ahead and sue. When you don't come home, we'll look after your wife.
This is Chinese for "don't raise rates, Janet"
The Chinese admit to faking yet the US and others do not... hmmm, which is the ACTUAL fake economy, please stand up
... and everyone stands up all at once
Riiiight, like the chinese are gonna admit this openly.
Sounds to me like they're giving a bullshit reason for the PBOC to devalue the RMB even further...devaluation war is now really on, bitchez!
Moot
As long as stocks are up, nobody cares why
Yuan devaluation is making more sense now.
And the reason we're telling you this right now is because fuck you Yellen!
No problem. They can get a job with the BLS.
Holy Fuck, what dat mean?
Tell that guy the U.S. Bureau of Labor Statistics is hiring.......
He should fit right in.......
Come on, all this way down the comments and I get to post
Nobody could have seen this coming!!!
What was the name of the poster who said GDP was negative everywhere? I miss him.
EKM.
This is capitalism
China must show the world how to deal with fakers
---------
okee
Divide the number with the minimum wage per day
You get no. of days
Then give these bastards a sentence
for so many days in jail of hard labor
let them earn money in jail for that duration
That is justice
let them understand the value of money
It was clearly a sham years ago when they were reporting 8% growth rates. Only because 8 is an auspicious number for Chinese people.
China has always been Enron times 1 billion.
To most of the world China's economy remains veiled behind a shroud and is far from transparent. Not only because China is far away from our shores, but the fact is their economy is very controlled by the government that acts as its puppet master and corruption has flourished. The bottom-line is we often have a difficult time getting real information on what is happening. To many of us it has become clear that China is in a situation similar to what America faced in 1929 following a period of rapid growth and credit expansion.
This is written not to diminish the accomplishments of China or to question their progress, but to point out much of what we have witnessed is the result of one time factors that have largely played out. Several factors have drastically changed politically, socially and from a military perspective since the days when America fueled China's growth. The article below titled, "China's Veiled Economy" highlights some of the reasons for doubting China.
http://brucewilds.blogspot.com/2015/12/chinas-veiled-economy.html
Reality stranger than fiction; when the Chinese admit fudging numbers before we do.
No shit.
See what happens when you send Chinese kids to universities in the USSA, and they get trained as experts in fraud rather than reality?
When they finish school and return home, they teach and practice endless forms of fraud they learned in the USSA.