China is great again. They’ve got a great big wall, zero tolerance on their borders, right wing goon squads, and they have a booming economy. What the fuck, I love China now.
Chinese GDP surged by 6.9%, while debt financing rose by 12%. Imports climbed by an impressive 22.7% and the country seems to be complying with the wishes of our globalist champion of a President, Donald Trump.
Source: BBG
The first quarter figure is undoubtedly upbeat and encouraging and it seems to have changed the short-term sentiment substantially,” said Zhu Ning, author of “China’s Guaranteed Bubble” and deputy director of the National Institute of Financial Research at Tsinghua University in Beijing. “But a large part of growth is achieved by another unprecedentedly large fiscal stimulus, infrastructure investment, and debt escalation, which is currently being camouflaged by increasing housing prices and land values,” he said.
Look, there’s always going to be haters, people out there with an agenda to tear down China’s great big wall. While credit growth is nothing more than a shell game to trick the masses into thinking shit is good, China won’t have an issue raising money in the credit markets to further their exploration into the world of ponzi.
Steel output hit a record high in March, which should come in handy when Donald Trump orders our bridges and tunnels to be rebuilt from the very best Chinese steel money could buy.
At a minimum, the global growth scare is off the table. This news out of China should embolden investors to buy the dips in basic resources, something I touched upon in Exodus on Friday.
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CLF for the win bitches. Return of EM growth, dollar weakening, and the dealer in chief getting our black gold sold in the Orient. If we avoid a nasty little Frexit this rocket sees 40 in a year. Who wants a lil white baggie
China, the great manipulator, especially of economic data. China is still a communist country; wtf? The majority, if not all, official data are contrived lies. Trade accordingly.