The Gold Standard | China loans

While you may like to reflect on the solid factual content of this news-article in Bloomberg such as

New bank loans last month dropped 33 percent from March to 681.8 billion yuan, missing the 780 billion yuan median forecast of economists surveyed by Bloomberg News. A third of April’s new credit was also so-called discounted bills, or short-term loans often used by banks to pad the total figure.

This month may be worse. The four biggest banks — which account for about 40 percent of lending — had advanced only 34 billion yuan as of May 20, Liu Yuhui, a director at the government-backed Chinese Academy of Social Sciences, said in an interview this week, without saying where he got the data. The lenders may rush to boost credit in the last few days, mainly through short-term notes, he said.

You need to scroll down to the bottom of the article for comic relief such as

Still, Morgan Stanley this week joined banks including Goldman Sachs Group Inc. in lowering its estimate for China’s economic growth for the year. The annual GDP forecast was cut to 8.5 percent, from an earlier 9 percent goal, to “reflect the worse-than-expected slowdown” in the first four months, chief economist Helen Qiao said in a note to clients on May 21.

Yes, hard-landing with 8.5% GDP growth.

It is not news that they lack any sense of credibility but it is news that we still hang on to their words.

DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.