Chinese Goldilocks Goalseekulator Spews Forth A Random Inflation Number And It Is...

Tyler Durden's picture

5.5! Right on expectations! We have a winner as the landing will be neither too hard, nor too soft... Just right. As for PPI, it came at 5%, on expectations of 5.8%, so the PBoC just telegraphed what we reported two days ago, namely that that one trillion yen in deposit backstops is not only urgently needed but coming any minute now. And so the reflation game begins anew.

And some actual notes from Bloomberg:

  • Oct. consumer prices rise 5.5% y/y, easing for 3rd straight month after reaching 3-yr high in July.
  • Consensus est. for Oct. CPI was 5.5% among 27 economists surveyed by Bloomberg; prior month’s reading was 6.1%
  • Oct. CPI up 0.1% m/m
  • Oct. food inflation 11.9% y/y vs 13.4% for Sept.; non-food prices rise 2.7% y/y
  • Oct. PPI increases 5% y/y vs est. 5.8%, lower than 6.5% gain recorded for Sept.

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Starving Artist's picture

Finally some good news.  RISK ON everybody!

DoChenRollingBearing's picture

Tyler put Gold(ilocks) right there in the title of his article, so I would invite everyone interested in GOLD to read FOFOA's great new piece on gold and money "Moneyness" at:

Yes, it IS long, but it is very, very good.

TruthInSunshine's picture

Right now, all over the globe, there are economists, some in the politiboro, some in academia, some even heading central banks, not understanding the following basic, fundamental and absolute equation:

For each unit of purchasing power destroyed via inflation, there is at least one less unit, at a minimum (I'd argue more than one unit of purchasing power destroyed given compounding effects, but I digress), available to be allocated towards the purchase of goods and services.

Stated differently, technocratic economic theorists don't grasp that inflation often represents a far greater and more destructive threat than deflation, from the perspective of real economic activity and growth, and that that inflationary inputs (especially at a time when wages/labor and credit-dependent assets such as homes, formerly comprising the bulk of what was the middle class's savings, are deflating and will continue to deflate due to automation, technology, a borderless trading world pitting slave against slave in the race to the bottom, and a contraction of credit available to middle class and working class individuals as well as small businesses).

This is precisely why someone like The Bernank should never be allowed to go near any lever or instrument of monetary policy.

We're all witnessing the highly destructive, sickening consequences of allowing such a person to have his hand on these levers as I write these words.

What's even more frightening and alarming is that it's quite possible (and even likely) that The Bernank would be more than happy and willing to double the cost of living, as purchasing power and consumption is cut in half, and tell the world that "at least economic activity is not contracting."

Hard1's picture

Chinese macro numbers same as financial results of chinese companies listed through aquisitions.  Trust me, they are made up as a reverse engeneering of what number would a westerner like to see.



All propaganda is just right. R eality is just plain wrong. But, two Wongs can make one wight, you wascawily widdle wabbits!

Western's picture

Fairy tales are necessary sometimes.

Marcuz Aurelius's picture

I sense a great disturbance in the force !

UP Forester's picture

I think that's just the dingleberries from the space-turd messin' with your mojo....

wolverhine's picture

There you go me insighter

Eireann go Brach's picture

Wing wang wung, who flung the cow dung at the Chinamon!

Hopium Dealer's picture

Chinese inflation is 15% right now.

Let them eat iPads's picture

Food inflation only 11.9%

Good thing they don't need any of that stuff.

nmewn's picture

Purse your lips and blow.

Andrew G's picture

ONJ was spot on ages ago - get physical!

Amish Hacker's picture

OK, then. Everybody back in the pool.

e1618978's picture

We need the billion price index to open a branch in China

reader2010's picture

Pork is too expensive and they've started eating baby girls now.

topcallingtroll's picture


There is already a huge vagina shortage in china cause they prefer to kill baby girls.

If they start eating them again (seems to happen every 500 years or so) then it will just get worse.

Unprepared's picture

Why use a goalseekulator when you can just punch in the target.

Yen Cross's picture

 So, with that denominator in mind.  When does " Goldielocks Go into Self preservation mode?"


   Those " divergent" bull shit cyn numbers were farcical! It's all good they will just revise next week, through some non-event, past -tense confirmation of regulation. Written with LEAD PENCILS!


    Better yet ! The pending #'s in a couple of  , Hong Kong- Shanghai  ( lunch time) hours will fill the voids.

TradingJoe's picture

WS needs them 8% or it's lights out, bonuses are also to be disbursed and plenty please!!!
And all of this at already hugely overbought levels, hehehehe!

onarga74's picture

I still can't believe that Communism was going to be the end of America.  Now they're makin our stuff.  Guess the commie scum arent bad if they have money and can balloon your bottom line.

Yen Cross's picture

 I see your point Sarah. Hop Singh has some " Hot Plates " , for sale.  Contact 101 " Tiananmen Square" , and tell them Yen Cross sent ya.

New American Revolution's picture

If China is the end of America, it is only because we paid for it.

Yen Cross's picture

 PBoC, are the best at financing exports!   VIA  ( US 10 Year notes)...

chinaboy's picture

If you look at the Shanghai market, people are a lot less exicited than the government had hoped.

My personal take is that this better than expected number and the triliion yuan printer job will proven to be another mistake down the road.

What's the point of popping up the stocks. It is a bullshit market anyway. I can't either buy or sell at this level.

BigInJapan's picture

"Trillion yen"?
Trillion Yuan, dayo.

Dr. Engali's picture

Wow ! Amazing how quickly theyearned from us to put out just the right numbers to achieve their desired results.

moskov's picture

I think the tightnening measure from the government really took some effect. They don't have to lie about inflation at the point since the past months were pretty bad. What's the point of faking it now?

sumo's picture

The Chinese haven't finished buying the West's gold.

When they're done, the goalseekulator will be turned off.


chump666's picture

The Goldilocks curse, silly China, the US tried to pull that in 2007...and you what happened after that.

China will crash so hard it will be like a asteroid hitting the Earth.

chump666's picture

just want to add about the fudge heads in China, is to keep a lid on the USD buying ala cross boader Yuan settlements.  Won't work, there is just too much BS in the market as the moment.  No one is buying BS anymore. 


chump666's picture

also wanted to add the dumb ass Chinese commie 'officals' just sent oil bid. y'know  China being a net importer.  We look forward in hearing about the major China banks/councils being bailed in the very near future.

css1971's picture

You can edit your own posts. Till some one replies.

Caviar Emptor's picture

It's still 5.5%. Right when the global economy is slowing. Too perfect. 

DrunkenPleb's picture

Chinese crash or Euro print-fest first? I'm taking bets with your little arrows... Up for Euro, Down for China

1000pips's picture

Always remember China backs Iran, if Israel starts war with Iran then China will participate. Then we have the End of the World, cause Israel will push the button if she is about to go down. This is the true 'End Game', because China wants Iran'a OIL. ! Can't trust China-Ever.

delacroix's picture

isreal will push the button, but you can't trust china? WTF

slewie the pi-rat's picture

a bullshit bull's eye, BiCheZ!

Yen Cross's picture

 Slewie? Did ya junk the thread?   You are such a meanie!  My Black and Decker hot /pot stopped working.  


     Now I need eat over boiled lead/ hot pot -= Fish heads.

slewie the pi-rat's picture

i just arrived

haven't junked anybody


steve from virginia's picture


Inflation does not equal 'inflation'. It is inflation PLUS 'Inflation' in China.

China GDP includes f/x factor which is interest rate spread between official and underground economies in China. That amounts to two-thirds of China's 9% GDP ... and this is all inflation.

'Inflation' can be seen by the amount of interest charged by loan sharks who have dollars to swap for yuan. Their exchange rate relative to 'official' exchange rate determines their vig or what they must charge to earn a profit.

Official rate is six + yuan/dollar, the 'unofficial' rate is twelve yuan per dollar so loan shark must charge more than 100% interest per year to cover f/x cost.

The greater the yuan discount to dollars the more interest the loan sharks must charge. Yuan borrowers must borrow much more than what they need so they can relend balance at an even greater interest rate.

Loan shark rates are 120-189% so the 'inflation' rate as determined by f/x to be much greater than the 5%, maybe 10% per month at a minimum.

PBOC is doing its best to stabilize the country while 'free market' is driving China into hyperinflation on dollar arbitrage! Yet PBOC allows this trade as otherwise all exporters will go out of business on rising yuan! By shifting f/x to loan sharks the PBOC can claim to not be manipulating currency while letting the crazy underground make yuan policy!

Pretty funny not for Chinese.

pleseus's picture

Good to see the central banks everywhere see deflation. Just in time to start firing up the printing presses. I smell a break out coming up in precious metals.

privatehedge's picture

Made in China - this statistical subterfuge sucks 'em in every time. For all the so called sophistication of data collection and measurement that is picked over by the squillions of DM economists from JPM to ANZ, couldn't hit the side of a slow moving bus... So how on earth can the ram-shackled Bureau of Statistics collecting (?) data bits the length of breadth of China get within even coo-eeee of even something close to the truth, let alone bang smack on the number nearly every time, unless of course policy dictates. The truth? Forget-about-it. Dont argue A FREE BMW with each apartment. RUFFR?