China

When it comes to fake data, China is in a class of its own: between fabricated export and import numbers (where hundreds of billion in capital flight are hidden), to massaged, goalseeked GDP "data", Chinese economic reporting has become a laughing stock across the developed world. Just last night, we showed a Goldman analysis according to which China was also misrepresenting its broadest credit aggregate, Total Social Financing, by hundreds of billions if not more as it was not accounting for shadow banking flows that did not end up in the economy.

Every ugly nonfarm payrolls has a silver lining, and sure enough following Friday's disastrous jobs report, global mining and energy companies rallied alongside commodities after the jobs data crushed speculation the Fed would raise interest rates this month.  “The disappointing U.S. jobs report on Friday means that a summer Fed rate hike is off the table,” said Jens Pedersen, a commodities analyst at Danske Bank. “That has reversed the upwards trend in the dollar, supporting commodities on a broader basis.

When it comes to China's new credit creation, at least the country is not shy about exposing how much it is. To find the credit tsunami flooding China at any given moment, one just has to look up the latest monthly Total Social Financing number which include both new bank loans as well as some shadow banking loans. As we reported in April this amount had soared to a record $1 trillion for the first quarter ...

The back and forth between the US and China continues, as US defense secretary Ash Carter said today at the 15th Asia Security Summit in Singapore that China risks isolating itself with its actions in the South China Sea.

Submitted by Dmitry Orlov, The Saker, Victor Katsap and Evgenia Gurevich via PaulCraigRoberts.org,

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