excalibur
Diamond Member
- Mar 19, 2015
- 29,111
- 58,897
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China has deep economic problems. What, tear down the empty cites and rebuild them? Build more high speed trains that are quite often little used while massively subsidized?
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From the below link:
thelibertydaily.com
1. Only a Handful of Lines are Profitable - Out of China's massive >45,000-kilometer HSR network, only a select few highly trafficked corridors (such as the Beijing-Shanghai and Beijing-Guangzhou lines) cover their daily operating costs and debt-servicing requirements. The vast majority of lines—especially those built in less-populated western regions or smaller secondary cities—operate at a loss.
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From the below link:
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What is shocking is that it is common knowledge that Beijing traditionally massages its economic data to present itself in the rosiest possible light: the fact that it allowed data this ugly would suggest that the picture on the ground is much uglier.
Goldman’s Delta One head Rich Privorotsky captured this sentiment well, writing this morning that “overnight news from China showed economic data materially below expectations. Industrial production, retail sales and fixed asset investment all missed meaningfully. It’s hard to tell whether this reflects genuine demand destruction but perhaps it helps explain how the oil market has managed to balance despite ongoing supply concerns. I genuinely can’t remember a period when Chinese data, which tends to be heavily massaged, missed by anything close to this magnitude. Negative read through for consumption related categories.”
Remarkably, not a single economist surveyed by Bloomberg had predicted as pessimistic a reading for industry, retail sales and investment. The disappointing performance of the world’s second-biggest economy last month is a reminder of its domestic vulnerabilities, after a global artificial intelligence investment boom sent trade soaring.
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What is shocking is that it is common knowledge that Beijing traditionally massages its economic data to present itself in the rosiest possible light: the fact that it allowed data this ugly would suggest that the picture on the ground is much uglier.
Goldman’s Delta One head Rich Privorotsky captured this sentiment well, writing this morning that “overnight news from China showed economic data materially below expectations. Industrial production, retail sales and fixed asset investment all missed meaningfully. It’s hard to tell whether this reflects genuine demand destruction but perhaps it helps explain how the oil market has managed to balance despite ongoing supply concerns. I genuinely can’t remember a period when Chinese data, which tends to be heavily massaged, missed by anything close to this magnitude. Negative read through for consumption related categories.”
Remarkably, not a single economist surveyed by Bloomberg had predicted as pessimistic a reading for industry, retail sales and investment. The disappointing performance of the world’s second-biggest economy last month is a reminder of its domestic vulnerabilities, after a global artificial intelligence investment boom sent trade soaring.
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"Shockingly Bad" Chinese Economic Data Stuns Wall Street, Turnaround Is "Nowhere in Sight" - 🔔 The Liberty Daily
If you love the news, check out The Liberty Daily's homepage. (ZeroHedge)—Confirming our Sunday preview, overnight China reported growth data which slowed across the board in April with investment resuming declines, retail sales missing sales and growing at the weakest rate in 4 years while...
thelibertydaily.com
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