THE EVIL RED EMPIRE – CONSUMERISM AND ECONOMIC EXPANSIONISM
Consumerism is a theory that claims continual increase in consumption of material goods is sound economically. Red China buried her dreams of Proletarian Revolution to embrace this theory of ‘CONSUMERISM’ as a means to accomplish her goal of Economic Expansionism. People all over the world have recognized dangers posed by practice of Consumerism. What we clearly need is Consumer Protection, not only laws to safeguard interests of the buying public, but also to protect rights of workers, communities, environment, and ecological systems that sustain delicate natural equilibrium. The lives, health, and well-being of both workers and consumers is compromised by hazardous products and planet Earth is facing a major challenge to the very existence of Life. Red China’s Economic Expansionism is not sustainable and her economic collapse is simply inevitable. Red China’s Economic Meltdown is indeed a Blessing to all of us.
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IS CHINA COOKING THE BOOKS ON ECONOMIC EXPANSION?
Analysts aren’t terribly confident in the Chinese government’s economic growth data.
China’s government expects its economy to grow 6.5 percent each year between 2016 and 2020.
By ANDREW SOERGEL Nov. 2, 2015 | 1:10 p.m. EST
One of China’s most senior government officials over the weekend said his country’s economy should expect to see “at least 6.5 percent” gross domestic product growth each year between 2016 and 2020, despite a growing pool of evidence suggesting China is in the midst of a historic economic slowdown.
But whether Chinese GDP numbers actually paint a clear economic picture is another question entirely.
“We propose to achieve the goal of creating a ‘moderately prosperous society’ by 2020, which requires annual economic growth of at least 6.5 percent over the next five years,” Chinese Premier Li Keqiang said Sunday during a speech in Seoul, according to The Associated Press.
He said the economy is operating within a “reasonable range” and that the government has “the confidence and ability” to hit its growth target of “about 7 percent” this year.
Rumors had floated around in the days and weeks leading up to Sunday’s announcement that the government would eventually lower its expansion goals for the next several years following a slew of recently underwhelming economic indicators suggesting Asia’s financial giant was beginning to cool. Exports and imports have plummeted in recent months, and the Chinese government announced in October that GDP expanded by only 6.9 percent in the third quarter – which represents the worst three-month period for the Chinese economy since the world was just emerging from the global financial crisis in 2009.
But even that 6.9 percent growth – the worst China had posted in more than half a decade – sounded too good to be true.
“We don’t have total confidence in the numbers, and we are surprised by the acceleration in services output given the collapse in the equity market,” a team of Bloomberg economists wrote in a research note at the time.
China’s stock market has recently strengthened, thanks in no small part to extraordinary governmental intervention. The heavy-handed Chinese government has thrown out safety net after safety net in an attempt to prevent a hard economic landing. Only a few weeks ago, China slashed its interest rates for the sixth time in less than a year.
“We continue to expect China to pull out all the stops to kick-start its economy in the coming weeks and months,” Burt White, chief investment officer at LPL Financial, wrote in a research note last week. “The [People’s Bank of China] interest rate cuts, along with selected fiscal and legislative actions in China, should further help to calm fears of a hard landing.”
Are China and Russia Trying to Undermine the U.S. Dollar?But some analysts have speculated that the Chinese government’s intervention could extend to the country’s economic news releases as well. A recent Wall Street Journal survey of 64 select economists found that 96 percent of respondents think China’s GDP estimates don’t “accurately reflect the state of the Chinese economy.”
They likely “overstate GDP by about 2 to 3 percentage points,” said one respondent.
“A government wielding such a heavy hand in markets is surely influencing/manipulating official statistics.” said another.
Ironically, China’s own premier has previously said he’s far from confident in the country’s GDP estimates, calling them “man-made” and unreliable, according to a leaked document from 2007 obtained by WikiLeaks. He said government data releases, especially the GDP numbers, should be used “for reference only.”
“Quite frankly, we don’t believe them at all. It’s not only that they come in suspiciously close to the target, which is pre-set. They’re produced remarkably quickly and rarely revised,” Danny Gabay, director at Fathom Financial Consulting, said last month in a radio interview with the BBC.
Gabay said he recalculated economic growth “based on Premier Li’s advice, which is that the GDP data are untrustworthy and we should use alternative measures to gauge the level of activity in China like electricity use, credit growth and other domestic indicators.” He said the actual growth number is “closer to 3 percent. Not 7.3 percent.”
But even if the 6.5 percent growth target between now and 2020 seems a little optimistic, it’s a clear recognition from the Chinese government that economic expansion now is not what it once was. China enjoyed double-digit annual growth between 2003 and 2007, and 2014’s 7.4 percent jump was still significantly higher than the global average, even though it was China’s worst year in more than two and a half decades.
For comparison’s sake, the U.S. economy hasn’t grown by 7.4 percent or more in a single year since 1951. And double-digit annual growth hasn’t been seen in America since 1943.
Part of the problem is that once an economy gets to a certain size, it’s just harder to keep up the momentum, which is likely at least partially responsible for China’s gradual slowdown. It would be unreasonable to expect the Chinese economy to plug along at a double-digit pace, just as it would be unreasonable to expect the U.S. economy to suddenly grow by 10 or 12 percent for a prolonged period of time.
But China’s government is able to influence market activity in a way America’s is not, which could artificially prolong China’s still respectable levels of economic growth beyond what would happen naturally. Most expect to continue to see relatively positive GDP numbers out of China for some time, even if such releases could be filled with a little bit of hot air.
“As an economy closely linked to international markets, China cannot stay immune to the lackluster performance of the global economy,” Chinese President Xi Jinping told Reuters in an interview last month. “We do have concerns about the Chinese economy, and we are working hard to address them.”
Andrew Soergel is an Economy Reporter at U.S. News.
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