You always have to careful not to selectively choose data that confirm your biases. I have long felt that the Chinese economy, given its heavy reliance on fixed asset investment cannot sustain its present growth rate and is heading for a serious slowdown. It’s easy to dismiss someone as a conspiracy theorist by suggesting that the official data coming out of China is being massaged. I have no way of confirming any such statement, however I do think it is worth listening to someone who is on the ground in China. In the video below Patrick Chanovec talks about the price increases he sees in his daily life as opposed to the official figures. Also check out his blog where he has more detail not contained in the bloomberg interview:
