Since we are bearish on Chinese equities for the intermediate term, we called the Chinese government last night and had them doctor up the numbers again.
Here are the reported results:
1. A sequential deceleration in monthly Industrial Production growth
2. A sequential acceleration in monthly Consumer Price Inflation growth
If you are in the camp that these guys in Beijing are just making up the numbers, get over it and just give’m a buzz. They are looking for Americans who are not willfully blind.
These two Chinese charts simplify a complex macro concept – growth slowing as costs (inflation) ramp. Someone is out there calling that a Chinese Ox In a Box.
Keith R. McCullough
Chief Executive Officer