Chinese Officials Falsify Data To Mask Slowdown, NYT Says

Is China tweaking its numbers on GDP? Probably. For twenty years Chinese GDP
roughy came in right on the governments target. This would be an almost magical
performance record considering economists in the West can predict absolutely
nothing. For years, China most likely lowered GDP growth. In some years you
would have growth in electrical usage at 20%, car sales up 50% but yet would not
get a GDP growth rate much higher than 10%.

So are the electrical numbers being manipulated? I doubt it, China is still
telling plants here in Zhejiang to prepare for shutdowns this summer due to
shortages in electrical capacity. If they want to manipulate GDP, the numbers
will just get boosted at the local levels instead of a conspiracy to high
electrical numbers.

While we are talking about government manipulation of statistics let’s talk
about the U.S. with a respectable 8% unemployment rate..but don’t count almost
90 million able bodied adults between 18-55 who are not included in the workforce.
Or maybe we can talk about how their is strong demand for U.S. debt as evidenced
by the low rates on U.S. Treasuries. Nevermind that the Federal Reserve bought 80%
of U.S. debt in 2011 and probably a similar number in 2012. Look over there…not
behind the curtain.

From the NYT

Some Chinese economic indicators are being inflated by roughly 1 or 2 percentage
points as local officials falsify statistics to mask the extent of the nation’s
slowdown, the New York Times reported, citing company executives in China and
Western economists.Government officials in some cities and provinces are overstating
economic output, tax receipts, corporate revenue and profits, the paper said,
citing executives and economists who requested anonymity for fear of jeopardizing
their relationships with Chinese authorities. They are urging companies to keep
separate sets of books, showing improving business results and tax payments that
do not exist, the newspaper said. Power plant managers have been told not to
report the full extent of the slowdown in electricity demand, according to the
report. The Beijing-based National Bureau of Statistics, which compiles most of
the country’s economic statistics, denied that economic data was overstated,
the paper said. “This is not rooted in evidence,” it quoted an unnamed spokeswoman
as saying. An economist with ties to the bureau said officials began making inquiries
after detecting signs that electricity output numbers may have been overstated,
the paper reported. Government officials, who didn’t want to see negative growth,
told power managers to report usage declines as zero change, a chief executive in
the power industry who wasn’t identified was cited as saying. Electricity consumption
in eastern China’s Shandong and Jiangsu provinces dropped more than 10 percent from
a year earlier in May, the newspaper said, citing a company executive with access
to grid data from the provinces. Jonathan Sinton, a China energy specialist at the
International Energy Agency, told the newspaper he hadn’t heard of false data in the
electricity sector. He doubted it would be feasible at the five biggest generating
companies that together produce half of China’s power. If there were a problem it
would be at smaller producers, he was cited as saying.

7 comments

  1. Gold says:

    they have had always power issues they are only lieing that GDP is really at 10% and it is there now 10% and not 8.5%…look they do not want a War from the insane USA on Iran so a slow down is what there saying to stop a war in Iran !

  2. Gold says:

    http://www.pakalertpress.com/2012/02/27/rothschilds-want-irans-banks/ US Navy to get 361 new Tomahawk cruise missiles, most of which are meant for Fifth Fleet destroyers based in Bahrain. Meanwhile, pressure to mount military strike against Tehran is permeating presidential campaign.

    The United States has commissioned 361 new Tomahawk cruise missiles, and some 238 of them are meant to find their way to the Fifth Fleet, which is based in Bahrain, Ynet learned on Sunday.

    According to the Business Insider, the deal – inked on the backdrop of repeated deadlocks in the nuclear negotiations between the West and Iran – may suggest that the US is gearing for a possible military campaign against the Islamic Republic.

    US defense contractor Raytheon won the deal, for a reported $331 million. http://www.setyoufreenews.com/2012/06/24/eyeballing-iran-us-commissions-361-cruise-missiles/ http://www.setyoufreenews.com/2012/05/17/plans-to-strike-iran-ready-says-u-s-israel-envoy/

  3. Gold says:

    Thank You TheYoungTurks for some truth about the Banking Cabal…
    In 2008, Iceland didn’t bail out the banksters they arrested them. Now their economy is growing faster then the EU’s. More arrests were made today. Google: “Iceland arrests bankers” and learn about this. Original Video:

    What We Can Learn From Iceland http://www.youtube.com/watch?v=64eI831eKY8&hd=1
    Iceland Dismantles Corrupt Gov’t Then Arrests All Rothschild Bankers http://www.dailypaul.com/241101/iceland-dismantles-corrupt-gov-t-then-arrests…

  4. Gold says:

    The plan calls for 10 demonstration principles, 100 demonstration cities and 1,000 demonstration enterprises and industrial parks, as well as a series of preferential policies regarding finance, tax, pricing and investment in a bid to accelerate the development of China’s green economy.

    He said China’s resource recycling industry has grown quickly, bringing some 20 million jobs. The industry now has 1 trillion yuan ($158 billion) in annual revenue.

  5. Rob says:

    Dan,

    So what if the Chinese are manipulating numbers; the United States manipulates CPI and Unemploymen to name a couple. In fact, the “fair” and “impartial” CBO is also guilty of this practice. Just another way to demonize the kid on the block with all the toys.

    Thanks,

    Rob

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