There’s some troubling news coming out of China. (see here)

Some snippets:

“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 more troubling is that even the much-touted measure of electricity consumption seems to have levels of mis-reporting:

“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.”

I’m guessing that with the handover coming in Beijing, expect more good/not-so-bad news coming out of China. For what the situation really is, look to commodities such as coal and copper.

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