Amidst the buzz over silver, and the intraday moves and data points that light pundits on fire, we often miss big picture things that have seismic effects on the world. Last week, the Financial Times reported that IHS Global Insight, a research and analysis firm, claimed that China had surpassed the Untied States as the world’s leader in manufacturing. Could this be another example of statistical noise or a sign of the big shift of power from east to west and from the U.S. to China?
In our feature, Rising Dragon, Falling Star, we wrote this:
Like any government statistic, it is hard to reconcile the torrid economic growth numbers that come out of the Chinese National Bureau of Statistics with the reports of ghost cities, bridges to nowhere, and “modern pyramid building.” Is China’s success real, or is it just the illusory mirage of wealth generated by a credit bubble on steroids?
In this poignant piece by Adrian Brown for Australia’s Dateline, emotional images are juxtaposed with seemingly irrational economic stories. While tens of millions of peasants live in abject squalor, is it possible to justify the government’s obsession with printing incredible GDP growth, quarter after quarter? You be the judge.