This Is How They Fool Us, China Edition

"So it seems that China’s economy, caught in the grip of a credit crisis just a few months ago, is all better. And so, by extension, is everyone else. As the Wall Street Journal explains it:

China Calms Anxiety With Economic Fixes

WASHINGTON—The world’s financial leaders started the year worried about China’s decelerating economy dragging the world into another major crisis. Now, they are breathing a small sigh of relief...

 To its credit, the Journal does express concern over how China stabilized its and the world’s economy. But that’s down in the “journalistic balance” section, while the headline and first few paragraphs set the overall optimistic (or at least relieved) tone. The casual reader is thus left with a sense that progress is being made.

But that’s emphatically not the case. All China did was borrow a bunch of money and spend it, and it’s left to the sound money community to figure this out. Doug Noland in his Credit Bubble Bulletin of course gets it:

Rather than the bust that appeared likely in 2016’s initial weeks, the first quarter witnessed record Chinese Credit expansion. Friday data showed Chinese March total social financing jumping $360 billion (led by a surge in bank lending). This was somewhat less than January’s incredible $520 billion expansion, though it did push Q1 Credit growth above $1.0 TN (historic)..."

at  http://dollarcollapse.com/debt/this-is-how-they-fool-us-china-edition/