China's ruling party seem to want capitalism without boom and bust, which is impossible. In fact you have to wonder about their GDP figures for the last 30 years, since the growth numbers always hit the state plan.
I'm reminded of a geography class about 25 years ago, where my friend, now a highly successful economics consultant got into regular arguments with the teacher.
We were given fact sheets about various countries, including GDP data. The official numbers suggested that South Korean and North Korean GDP were close ( in a range of 20%). My friend argued that this was nonsense and the North Korean data was fabricated. The teacher was pretty angry and a stalemate ensued. Feels rather familiar.
Now obviously there has been significant economic growth in China in the last 30 years, though you could argue it's not that impressive. All they had to do was stop starving and murdering their population, as Mao did, and things were bound to improve.
But how much stands up to scrutiny? What is real and what is fake - that's why investors should be spooked. I don't see why we should trust anything the CCP says unless there's solid, 3rd party verification.
This comment was left by Adam Bromley at UK Telegraph. Read more of Adam Bromley's comments at https://disqus.com/by/adambromley/
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