Trump Claims Credit for China’s Astonishing 6.2 Percent Growth
I guess with a growth rate the west can only dream of the Chinese are really screwed here
China’s 2nd Quarter growth is the slowest it has been in more than 27 years. The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal….
— Donald J. Trump (@realDonaldTrump) July 15, 2019
….with the U.S., and wishes it had not broken the original deal in the first place. In the meantime, we are receiving Billions of Dollars in Tariffs from China, with possibly much more to come. These Tariffs are paid for by China devaluing & pumping, not by the U.S. taxpayer!
— Donald J. Trump (@realDonaldTrump) July 15, 2019
I find Trump taking credit for China’s declared annualized 6.2 percent growth rate in Q2 2019 absurd on multiple levels:
• First of all 6.2 percent is an awesomely high number that western countries can only dream of. If anything 6.2 percent would show that China can maintain growth levels the US can only dream of even when the US is going out of its way to drag it down.
• Secondly exports these days are just 20 percent of China’s GDP and the US is 20 percent of that. A small decline in the 4 percent GDP share that are Chinese exports to the US is not the biggest deal, and is far from China’s biggest problem and source of weakness.
The problem for China is that after the 2008 crisis it took a page out of America’s playbook and started an unwise stimulus program, initially by spending some of its reserves, and eventually by blasting the economy with easy credit. Such policies only create an illusion of wealth and only for a short time, and eventually China would have to pay the price.
That said the everything-bubble in the US is even bigger and while it may take longer to pop, when it does the fallout is going to put all previous recessions to shame.
• Thirdly, while it is undoubtedly true that China is growing at an enviable rate it’s GDP numbers work differently than in the west. In China the CCP sets a GDP growth target and it falls upon the provinces to conjure up that growth number in any way they can. Thus reading too much into small oscilations of the growth rate is a mistake. (It could theorethically even be caused by the center cracking down on the most fradulent reporting practices albeit I don’t think that is the case in this instance.)
Do not be fooled either, GDP growth numbers in the west are likewise fradulent, primarily because the calculations go out of their way to understate inflation.
Every time Trump opens his mouth, he demonstrates that his one true calling in life is to be a court jester.
He is America’s Buffoon-in-Chief.
the only things D.T. has not taken credit for is:
-the societal collapse of the u.s. population (ala opioids, homeless, mentally sick, fsa, antifa, pedophiles, employment and on and on)
-the total absence of foreign policy vis à vis IR, VE, IQ etc.
-the collapsing infrastructure.
-the going nowhere trade war with the entire world.
-the khazarian overthrow of the homeland.
great track record to bring into public view in 2020.
but then the other side is in even worse shape.
leaders of the free world. you betcha.
The EU has a ridiculously low, long term growth of 0.1- 0.3%. They have gone stark staring mad against the UK but can’t look at themselves and their measly low progress and high unemployment. Lets not go into how many EU states are full of debt, all except Germany now hitting the skids. So proud is Trump on what? Causing losses to anothers economy. Story of America.
“The problem for China is that after the 2008 crisis it took a page out of America’s playbook and started an unwise stimulus program, initially by spending some of its reserves, and eventually by blasting the economy with easy credit. Such policies only create an illusion of wealth and only for a short time,”
Nope. China simply brought forward some revenue-generating investments to keep the economy on an even keel. The borrowing was entirely domestic and the
The result is that China’s debt/GDP is the same as the US and EU’s but its debt burden is one-third of theirs because its economy continued growing 300% faster, the assets securing the debt are valuable, and all debt it domestic.
correct