China Power Transfer Risks
The immediate story out of China is that the first calendar quarter's annual GDP growth rate came in below expectations at 8.1% vs. 8.4%. I have been following China's state released economic figures to the best of my ability for the past 20 years. The quality of the figures has always been suspect, as I have previously written about. The best thing to do is to be a bit skeptical about them and not extrapolate substantive meaning for the financial markets or economy.
Specific to GDP, even as China has exhibited substantial growth over the past few years, its stock market has gone through the same roller coaster ride as most of the rest of the world since 2008. The economy is also facing the same concerns about the effective limitations of monetary and fiscal policy, as well as inflation in food and energy. I will comment more on what these issues portend for China in the future....585 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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