Nothing much new here but it reinforces the stupidity behind the market relying upon economic data complied by the Chinese Government. On Monday we had both the Government and Private gauge on manufacturing PMI and it came in 49.8 and 48.3 respectively. Today we get the private gauge on the Composite PMI so will be interesting to see how that comes out. What the latest reads ( both gauges ) are showing are a massive amount of Government spending ( stimulus ) to prop up their economy. Of course this is being done by stealth and no one really knows how much stimulus they are piling into the Chinese economy to give their fake GDP figures some semblance of reality. I think if we had a read on the amount the government is really spending to keep things going it may really scare some people out there .
For disclosure's sake, I'm in the Chinese economy is really growing at 3 to 4 % camp. So if it's true the Government is going to put a 6.5% growth target for the next 5 years then some ( like me ) will continue to think that the real GDP growth is going to have a 2 or 3 handle not a 6.
