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Saturday, June 23, 2012

Turns Out China IS Lying About Everything | ZeroHedge

Blogman's Notes: Surprise Surprise, Surprise!!! Chinese statistics are all made up, false, fiction, lies; well, it ain't a surprise to any of us here in the alternative blogosphere. As I have warned on numerous occasions in the past, the growth of China, at least since 2008 is a carefully crafted fiction by the Chinese Govt. and equally carefully disseminated by Western MSM. All those billion Chinese that were going to replace the American and European consumers are not going to materialize. China is not going to become a great nation of Middle Class consumers like America and Western Europe. China is one big slave labor gulag and India is even worse. The Debt fueled economies of both these nations are starting to go up in flames, especially in India, watch for both these nations to experience unprecedented social unrest, even revolution, and possibly civil war, at least in the case of India. Or they may launch a war against each other; unbeknownst to many China and India have fought a war, and there are constant tensions on India's Eastern border with China. 
In what may come as a shocking surprise to exactly nobody, the next great discovery as more and more layers of the global ponzi onion are exposed, is that China was, in fact, lying about everything. Yes, we know, stunning.
As the Chinese economy continues to sputter, prominent corporate executives in China and Western economists say there is evidence that local and provincial officials are falsifying economic statistics to disguise the true depth of the troubles.

Record-setting mountains of excess coal have accumulated at the country’s biggest storage areas because power plants are burning less coal in the face of tumbling electricity demand. But local and provincial government officials have forced plant managers not to report to Beijing the full extent of the slowdown, power sector executives said.
Even that lonely indicator that some, even us, had considered somewhat realistic: electric output, is a mirage.
Electricity production and consumption have been considered a telltale sign of a wide variety of economic activity. They are widely viewed by foreign investors and even some Chinese officials as the gold standard for measuring what is really happening in the country’s economy, because the gathering and reporting of data in China is not considered as reliable as it is in many countries.
But an economist with ties to the agency said that officials had begun making inquiries after detecting signs that electricity numbers may have been overstated.
Another top corporate executive in China with access to electricity grid data from two provinces in east-central China that are centers of heavy industry, Shandong and Jiangsu, said that electricity consumption in both provinces had dropped more than 10 percent in May from a year earlier. Electricity consumption has also fallen in parts of western China. Yet, the economist with ties to the statistical agency said that cities and provinces across the country had reported flat or only slightly rising electricity consumption.
In other words, the chart we showed a month ago showing already collapsing Chinese power production is far, far worse in reality.

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