China Sliding Into Not Recession, But Worse? 1930s-Style Trade Wars Loom.

[cieldumort]

Times Online:Violent unrest rocks China as crisis hits
The collapse of the export trade has left millions without work and
set off a wave of social instability, writes Michael Sheridan in Hong Kong.Bankruptcies, unemployment and social unrest are spreading more widely in China than officially reported, according to independent research that paints

Comments

[cieldumort]

That's great. lol@newsweek

China is the only major economy that is likely to show significant growth this year, because it is the only one that routinely breaks every rule in the economic textbook. There is no truly free market in China, where the state doctors statistics, manipulates the stock markets, fixes prices in key industries, owns many strategic industries outright, and staffs key bank posts with Communist Party members and tells them to whom they should lend, and in what they should invest. In fact, the main reason China is not slowing as fast as the other big five economies is its capacity for what economists ridicule, in normal times, as state meddling: it limited foreign investment in the banking sector and didn't embrace the exotic financial innovations that are the melting core of the global credit crisis.

I think in a way, Newsweek is right. And in a more garden-variety recession, this take would probably make some more sense.

The fact of the matter is however, that if they already know that the government puts out bogus statistics, well, then... it's just plain DUMB to then suggest that their economy is doing honky-dory... even dumber to suggest it in the very next breath.

lol newsweek

[fischlehrer]

But isn't Newsweek a fantastically credible news source? Don't they do investigative journalism and all that? Don't they have paid professional reporters?

He he he

[cieldumort]

::snort::