Lots of noise over the China/Japan island dispute and how big, scary China will flex it’s as yet unseen military might. Uh huh. This is not the Asian century. China is not a world player, they are a maker on tiny plastic things for the amusement of the developed world.
Precisely. When we have used up China to our satisfaction, we can turn to anyone we choose to provide our manufacturing. Like Mexico for example. And they would be happy to do it. Everyone thinks China has us in a corner, when in fact the opposite is true.
China owns US debt. Debt which can be repudiated at a whim and cannot be used to buy anything the US does not want.
China does not have its own market and is decades away from it. Regardless of how many iToys Apple says it sells there.
Messing with Japan is having them expose what is really on their minds and they would be foolish to “flex” their non-existant muscles at Japan or anyone else for that matter.
Their military is a joke, their planes glow infrared like a flare and their single aircraft carrier is a relic.
Im not really sure what they think they will gain from this, but exposing how new they are to the way the world works.
While the Achilles heel to the endless “economic data” BS coming out of China may be its electric production and demand, both of which show a vastly different picture than what the Beijing politburo’s very wide brush strokes paint, the US itself is not immune from indicators that confirm that anything the BEA dishes out should be taken with a grain of salt. One data set that we showed recently that paints a drastically different (read slowing) picture of the US economy which we noted recently is railcar loading of waste and scrap for the simple reason that “The more we demand, the more waste is generated by that production.” Of course, the propaganda manipulation machinery only focuses on the “entrance” of production, and completely ignore the “exit.” But an even far more important metric of the general health of the US economy may be none other than broad energy demand, in the form of petroleum deliveries and gasoline demand. If this is indeed the relevant metric to observe, then things are about to get far, far worse. As Dow Jones notes: “U.S. petroleum deliveries, a measure of demand, fell by 2.7% in July from a year earlier to the lowest level in any month since September 2008, the American Petroleum Institute, an industry group, said Friday.” It gets worse: “Demand in the world’s biggest oil consumer, at 18.062 million barrels a day, was the weakest for the month of July since 1995, the API said. Year-to-date demand is down 2.3% from the same period in 2011.“
Macro factors make a difference. Showing, yet again, that the ‘miracle of China’ is so much bovine excrement.
So… let’s see here: huge disparity between what is represented and what the reality is… a crucial political election… and a regime that many have accused of misreporting critical data for years (even if others captured media outlets accuse the former of being conspiracy theorists)…
Why… could this possibly mean that every piece of data out of the US is just as made up and just as meaningless? Now that would be truly unpossible.
This is an extremely dangerous environment: one in which the primary prop for the markets (central bank intervention) is becoming both less effective and politically toxic. Indeed, it’s clear at this point that the EU isbeyond intervention since neither the ECB, IMF, nor the ESM have the firepower to hold things together.