Tuesday, July 14, 2009

Rumblings about China

I don't remember where I first read it, but a few weeks ago somebody somewhere in the blogosphere pointed out how China keeps publishing numbers showing that their industrial output is rising, yet China's utilities show that electricity use has been falling dramatically. These two things would not usually move in opposite directions. It was soon after that we found that China's utilities abruptly stopped reporting output data on their power plant generation. Ah. Problem solved. No, wait...predictably the whole debacle then spread to nearly every economics blog on the Internet.

This of course includes Paul Krugman who in his version points out that GDP could therefore be overstated in China in a post entitled "What you don't know...".

The whole storm seems to have blown over, yet the ramifications of what is suggested are frightening and as of yet are unresolved. Who's ready for the double-dip recession?

2 comments:

Anonymous said...

dude your investments must be getting pwned

Walter said...

Rick, I'm sure you're as busy as the rest of us, but I really miss reading your blog posts. Do you plan to resume?