2016-02-23

Weak Propaganda Makes Bears Strong

An article trying to say why not to panic over China. The article doesn't address any serious concerns and the last line contradicts the whole article. This is the type of response that, were it to come from a private company facing concerns about its business, would make me put everything into a short position.
People's Daily: Economic Watch: No need for panic about China's economy
"Good times may breed crises in the West," Jin wrote in an article on news site Project Syndicate. "In China, it is crises that bring better times."
Good times lead to crisis in the West, but bad times lead to good times in China. So what leads to bad times? Feng shui? In any event, if this was true, then everyone in China should be happy with the uber bears calling for a 1930s Great Depression for China, since it will usher in a new Golden Age.

Also, the propaganda ministry is getting sensitive.

Mises turned down a job with Kreditanstalt in 1929 because "A great crash is coming, and I don't want my name in any way connected with it." The bank was the first major domino to fall in 1931, the year that crushed recovery hopes and made everyone realize the depression was far worse than believed.

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