LIES, DAMNED LIES, AND COMMUNIST STATISTICS: An under-the-radar way to measure economic growth in China is painting a bleak picture.
China’s true pace of economic growth is always hard to decipher, but the country’s lagging diesel demand could be a sign that the world’s second-largest economy is in a much more dire state than official numbers indicate.
Diesel demand in China fell 14% and 19% in March and April, respectively, reaching levels not seen in a decade, according to data compiled by Wells Fargo. Monthly demand has also been falling every month since December 2017, the data shows [sic].
“We believe the accelerating decline is most likely tied to economic factors and the effects of the tariff ‘war’ with the U.S. (lifted demand earlier in 2019 to ‘beat’ the tariffs, but now falling),” Wells Fargo energy analyst Roger Read said in a note Monday. “If one wants to worry, that is where to focus most closely in our view.”
China said in April its economy grew by 6.4% in the first quarter of 2019. However, global investors and economists have been skeptical of China’s official economic figures for years as they believe they are overstated.
You can’t trust anything out of Beijing.
I read this threat as a sign of desperation, not strength. Anyone “smart” enough to try to get rich cornering the market for a natural resource ought to have a long talk with the Hunt brothers. In the long run, it never works, as high prices cause people to find substitutes or new sources.