China faking trade data?

[errolanderson]

according to a Bloomberg story . . . .

China's crackdown on fake export invoices used to disguise money flows is probably cutting the nations trade figures, revealing subdued global demand that will weigh on economic growth. Outbound shipments may have grown 7.1% in May less than half the previous month's reported 14.7%.

The crackdown from China's foreign-exchange authorities on fake invoicing will bring the inflated growth down to the real trend, which is single digits. More broadly, China's economy is weakening, but is not collapsing . . . a comment from a Chinese economist.

My comment, not Bloomberg . . . good grief! If these trade fiqures are faked, what is the impact on the commodity world? So-called China miracle growth may in-fact not be in a miracle.

Personally believe global markets are entering a deflationary wave . . . this ridiculous news is just another push.

[sumdumguy]

Do you think they are all fakes, western
governments included?

[furrowtickler]

There is a shocker .....
Did the big boys just figure that out ???

[SASKFARMER3]

No shit Sherlock!

[bucket]

Good thing is a billion plus people still have to eat.

And that government will keep its people fed because the alternative is not pretty.

[ado089]

Put it all together boys. Our strong
grain prices are propped up by the
delusion that China is going to ignite
new life into the world economy. When
people wise up to the fact that china is
effed watch commodities tumble. Tumbling
commodities also hurts developing
economies amplifying the original
problem. It's not purdy folks.

[rkaiser]

And thus - the advantage of dealing in real property and having to work, rather than playing with paper and sitting on our asses.

Yes China needs to keep the masses happy with food.

And government in the West just plays with money and grows it on trees if they need it. Which is more deceptive?

[ado089]

Real or not if demand drops and supply
remains static prices will drop. There
is a huge difference between our
definition of being fed and a country
like chinas definition of being fed.
With 600 million miles class in China
there is now alot of room for drift
downward in consumption.

[errolanderson]

ado089 . . . amen.

[bucket]

I think if the weather holds there will not be an increase in supply.

Some are starting to wake up to the facts. Others prefer to be ostriches.

No doubt the crops have a good start but after no rain in the corn belt last year, record yields are far from certain with only minimum rain so far.

I remember one fact I learnt in the states in my drunken stupor, each corn plant requires a barrel of rain to produce bumper crops.