China Car Sales Up 22.6% -The Chinese economy is collapsing?

You have to laugh at the whole “China will collapse crowd” on CNBC and even
respected sites like Zero Hedge. Personally, I love the Zerohedge stuff.
They understand the ponzi-financial fraud-money printing-welfare state economy
that now envelops the West. But China is a real economy, with real demand.
They have people who work hard, strive for education and pay in cash. The banks
are controlled like utilities and speculators are kept on a short leash.

China will not crash..at least not for the next ten years. The risk profile on
China is more geared toward geo-political issues in the south China Sea and the
countries eventual transition to a democracy which I believe will happen sometime
in the next 10-20 year timeframe. Dont’forget all of the Asian Tigers grew up as
one-party dictatorships. Taiwan and South Korea did not even get democracy until
the 1980’s. It will happen here as well.

Car sales in China rose 22.6 percent in May from a year earlier, according to
data released on Saturday, extending the double-digit gain made in the previous
month, as new models premiered at April’s Beijing autoshow started to hit the
showrooms.

In May a total of 1.28 million sedans, sport utility vehicles (SUVs), multipurpose
vehicles (MPVs), and minivans were sold in the country, the China Association of
Automobile Manufacturers said. In the same month of 2011, that number was 1.04 million.

From January to May, deliveries climbed 5.5 percent to 6.33 million, continuing
an uptrend which started in April.

12 comments

  1. Gold says:

    NICE..BUY MORE G.O.L.D!

  2. IAMSLATTERY says:

    Wait! But Dan didn’t someone on ZH say the inventories at car dealerships are at new highs and managing to stay on the showroom floor for longer than ever?

    Put a fork in China – they are done.

    If that is the case the US is that dust blowing in the wind.

    So why do so many smart folks think China is doing so bad? Is it they are desperate to look good in comparison, need an enemy, or are the really dumbfukinnaggerslaves?

    • francis liew says:

      YEAH YOU ARE RIGHT…THEY ARE DUMBFUCKINGNIGGERSLAVES. THIS IS ABUSIVE….MORE LIKELY THEY JUST COULDN’T BELIEVE THEIR EYES AND THEY THEN START LOOKING FOR EXCUSE LIKE MOST NORMAL HUMAN BEINGS.

  3. D.Collins says:

    Car inventories are up very high but only at the local car manufacturers. Everyone here wants a foreign nameplate, they don’t want the local brands, hence the government is now stepping in on a cash-for-clunkers but will be limited to the domestic market.

    Another thing is people are stocking dealerships as we are moving into the strong summer selling months. Keep in mind here also that China makes people shut down factories for some summer working days due to lack of electricity so you need to build ahead.

    Good question on why so many people overseas see China is collapsing. Your guess is as good as mine. My only thought would be people growing up in the West have been a a 30 year fiat currency, credit , and debt bubble. They really don’t know what real GDP growth looks like. They just assume China is a ponzi scheme just like EU and U.S. China is the world largest creditor nation, in fact I heard today currency reserves are up to $3.7 trillion, they have massive trade surpluses, and one of the hardest working populations on the planet. In the States, the Fed bought 80% of U.S. debt last year, have 90 million able bodied adult out of the workforce but China is going to collapse?

    Personally, I have heard these arguments for 15 years. Someday they will be right but I doubt it will be this decade.

    • IAMSLATTERY says:

      Dan – you are the man. I really mean that.

      I am so confused as to why Max K and ZH are so much more popular than you.

      Maybe your site title needs rebranding?

      Either way I’ll keep throwing your info at idiots on comment boards in order to push logic.

      Ever get a chance check me out:
      http://www.luminous-views.com
      I am just a poor artist who has become fascinated with eCon-omics. Sure would be nice to get to your part of the world and do what I do. Some day. When that day comes I’ll let you know and maybe see if you have time for a cup-o-joe or beer. It would an honor to sit and chat.

      Thanks again for what you do.

    • francis liew says:

      EVER HEARD OF SCIENTIFIC SOCIALIST DEVELOPMENT WITH MARKET CHARACTERISTICS? IF YOU HAVEN’T I SUGGEST YOU READ UP ON 19TH CENTURY WESTERN ECONOMICS AND SOCIAL SCIENCES. HOW COME DUMB WESTERNERS CANNOT APPRECIATE THEIR OWN PROFOUND WISDOM BUT FOREIGNERS LIKE CHINESE CAN? THE LIKELY ANSWER IS YOU CLOUD YOUR JUDGEMENT WITH POLITICAL HUES! SO CLEVER AND YET SO DUMB!

  4. Mike says:

    My head spins from the info and opinions these days. Two seconds after reading this ZH article (http://www.zerohedge.com/news/2013-02-08/china-accounts-nearly-half-worlds-new-money-supply), I decided to check my old faithful at The China Money Report and hear just how biased ZH is against China (not the first time I have heard this mind you) – something which gives me pause before moving on the info. My cynical side isn’t sure who to believe anymore, but I certainly enjoy the more positive news from this site. However, and this is really the rub, don’t you all find it difficult to ignore the statistics in articles such as the one above? Maybe Mr. Collins can respond to the 11 trillion in RMB printing and comment on whether this is erroneous, misrepresented or just another tool to combat the ongoing currency debasement. They (ZH) may not like China too much, but it seems that information has a way of erasing the need for bias and cutting right to truth. If the Chinese are printing bills at this rate, I am not just afraid of inflation, I am fearful of TOTAL market repercussions.

    I love the site, Mr. Collins and will remain a loyalists. I would counter ZH articles with submissions of my own if I only knew where the info they get comes from! As it is, I look to your wisdom for insight.

    • D.Collins says:

      Hey Mike- Thanks for the comments. Zerohedge is clueless on China but right on about the Western created ponzi scheme. What they miss is all this money printing will drive stocks higher , not lower. China is printing massive amounts of money. But the difference between China and the West is that China is not a welfare state and their is real demand. In China, you have to limit car sales and home sales from buyers paying in CASH. The U.S. and EU can’t find demand even when its all on credit.

      • Mike says:

        Thank you for responding back, Mr. Collins. You are right about the West having trouble finding demand, and I suppose that is why we see the Dow at nearly 14,000 despite honest attempts by many Americans to pay down debt (or hunker down with PM), combined with weak consumer statistics…printing money in that environment spells disaster. Do you believe the RMB printing has something to do with all the cross-border demand for RMB as well as domestic? With Taiwan now poised to begin settlements in China’s currency, my guess is that China is prepared to make sure these institutions are well-stocked. You ARE the authority as far as I am concerned and it is high time I subscribe to TCMR!

        • Dan says:

          Hi Mike-
          RMB printing is mainly to keep the exchange rate fixed against the U.S.D. It has caused massive inflation and inequality here in China. The cross-border demand is growing fast however, about 50% of Chinese trade is expected to switch from U.S.D to RMB by 2015.
          Thanks for your comments and we hope you subscribe with us!
          Cheers
          Dan

      • JOHN C DURHAM says:

        Many Dollar denominated contracts are unwinding. Dollars are in scarce supply compared to all these securities, commodities and mountains of derivatives piled on. When the unwinding is done through and finished, there will be not many new contracts made using the Dollar because no one wants them. Anyone here want Dollars? See?

        The Dollar will fall then, in slow motion, as almost 200 nations rid themselves of Dollar trade, more and more, making new contracts, more and more in their own currencies valued in gold backed BRICS Bank, AIIB Bank, Ruble, Yuan currencies. Nations will be spending their USTreasury “reserves” on Gold/Silver/Infrastructure.

        We will see the day, and see it fairly soon (2-5) years when Argentina and the like nation’s money will be good in International trade because they have moved away from the tyranny of the worthless Dollar into the Liberty of a value (Gold, Infrastructure, etc.) supported currency which their entire banking systems will use as real reserves.

        The US will recover and re-industrialize and finally send their bankers to jail. And even though small/medium size business will bounce back quickly, the US may never catch up with many other nations and probably not ever again “…lead the Nations of the Earth…”

  5. JOHN C DURHAM says:

    It is written here: “…the
    countries eventual transition to a democracy which I believe will happen sometime…

    It was fortunate that China had a People’s Republic government in place to, ultimately, defend itself against the West’s Culture vacuum, non-Christian Christians, TBTF Banks, Monsanto like corporations, Big Oil, the US/UK Press, Intelligence and War Machine.

    Russia, during Yeltsin, did not do as well and lost more than 50% of its USSR market and has had to claw back much that was stolen by the West but, Russia is on the road to full recovery.

    The US’ real GDP has declined since the Kennedy murder. There has been no President on the side of the People since. While China and Russia and the BRICS/AIIB moved toward the founding political-economic ideas of America, the US has moved away from its own principals of a value supported currency and have neither infrastructure or wealth which is possessed only 50 years ago.

    Today, the US prints money like it is a Third World nation, while China/Russia has patiently moved gold/silver/infrastructure to support theirs. Of course the Dollar cannot continue to be used for international trade.

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