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Monday, February 23, 2015

William Pesek is an idiot


Bloomberg - China growth is slowing. See if you can make B follow from A here:
a Chinese slowdown will rob the world of another vital growth engine amid already tepid demand.
Um...

If China's already the world's second largest economy, and if it's still growing even at 3-4%, that still means the world's second largest economy is already growing at 3-4%.

That's still better than the Eurozone and Japan, and about equal with the US.

The only reason anyone would whine about slower Chinese growth* is because they want to make money speculating on demand shortages caused by overheated growth.



* - And btw, note that growth in the real estate sector provides little benefit to the economy because the real estate sector is generally unproductive; what you want is growth in services and manufacturing, where productivity improvements can strongly impact GDP growth.

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