It seems that China has pulled it off again

It seems that China has pulled it off again. Just when the naysayers were dismissing its economic growth model and expecting the pace of growth to drop to something close to 7%, the government pumped in a ton of investment and the economy expanded 7.5% in Q2, compared with the same quarter in 2013. Does this mean China's economy is finally growing in a sustainable way? The superficially triumphant return to 7.5% growth this quarter actually means China's leaders are unable to kick their addiction. Just yesterday, a central bank official said Chinese banks will lend 9.5 trillion yuan ($1.5 trillion) this year-the biggest credit surge since the 2009 financial crisis. The tricky thing with chronically puffing up your GDP data is that it makes it really hard to tell what's really happening in the economy. When a measure becomes a target, it ceases to be a good measure. (VIEW LINK)


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