Wealth Transfer in Full View
by Rory, The Daily Coin With China’s industrial production on the rise and exports sinking like a rotting ship this could mean only one thing–internal demand is rising sharply. As we noted in the latest Shadow of Truth Market Update, China’s exports have fallen by 2.8% year-over-year and now we find out production is rising. Either there is major league channel stuffing going on or “Momma needs a new pair of shoes“. Apparently, Momma does need a new pair of shoes as real growth expanded by more than 10% in April. Remind me of the official first quarter GDP for the U.S.; oh yeah, revised down to 0.1%. Once you add inflation of somewhere north of 4% (generous and very conservative) you come up with a contraction in GDP. What does this mean to the Western world? While the middle class is evaporating in the West, China’s middle class is steadily rising. Wealth transfer is in full swing and very visible. Got preps? Chinas industrial output up 6.1% yoy in May
Industrial output in China grew 6.1 per cent year on year in May, up from the 5.9-per cent growth in April, official data revealed on Thursday. National Bureau of Statistics also announced on Thursday China’s retail sales grew 10.1 per cent year on year to 2.42 trillion yuan ($396 billion) in May. Fixed asset investment rose 11.4 per cent from a year earlier to 17.12 trillion yuan ($2.8 trillion) in the first five months of the year. Investment in China’s property sector rose 5.1 per cent year on year to 3.23 trillion yuan ($528.21 billion) during the same period. China’s policy makers unveiled further action May 10, with a third reduction in benchmark lending rates. The Chinese leadership’s 2015 growth target is set at 7 per cent.