Don't believe China lies. Could it be Jaxports economic engine?
Much has been said about China saving the world from economic armageddon. Well I have news for the China bulls, the macro-economic data that you are pinning your investment hopes on are no where near as good as you think. In fact they are probably quite far off the mark.
As the quote goes "Lies, damned lies, and statistics". http://seekingalpha.com/article/145565-markets-suffer-through-more-lies-and-statistics There has always been an air of skepticism around published China economic statistics. However the pressure to 'fudge" GDP growth numbers amidst the most serious economic crisis since the Great Depression is even more prevalent at this time.
The fact is economic growth in China over the past 15 years has been largely driven by the US consumer. The US has been the largest importer of Chinese "crap" as CNBC's Mark Haines puts it over the past decade. From toys with lead paint to plastic garden gnomes and laptop PC's, China has become the "factory of the US". In turn China has benefited by increased employment, higher wages and a better standard of living, all financed by the US housing bubble and credit boom. China's economic fortunes depend heavily on the fate of the US economy. Without a recovery to previous US spending levels, Chinese factories will lay idle, unemployment rise and economic growth falter. Although Chinese domestic consumption is rising, it is nowhere near enough to replace the now anaemic US conusmer. As economist Andy Xie has noted, the amount of stocks and real estate held by the population is only twice the GDP compared to developed nations where similar figures are four times GDP. Furthermore if you factor in rising unemployment and lower wages, the propensity for the typical Chinese to go out and buy that flat screen TV is now much lower.
The last thing the Communist Party wants are unhappy citizens taking to the streets and demanding a regime change. So, in addition to fudging the economic data, the Chinese government has been desperately shoring up the stock and real estate markets to give the impression things are still rosy. Question is, how long can they continue to do this before fundamentals catch up.
As Premier Wen said at the EU conference in February, "dont depend on China to save the world from economic depression". Maybe he knows something about the economic data that JAXPORT don't. Shame on you JOBS JOBS JOBS you claim but looking at the jacksonville unemployment rate is on the rise! you might create jobs in China or Korea but not here at the port as indicated by only 150 workers. most of the ships that enter our ports employ foreign nationals replacing our own american workers aboard these ships and they all continue to polute our environment because Jaxport refuses to require them to pump instead of dump.Do we need these bunker burning ships that polute our air we breathe! ship emissions kills