How Badly Overstated Are China’s and America’s GDPs?

China’s GDP unexpectedly cooled again, but to an amazing six percent. It’s likely way overstated. What about the US?

Unexpected Slowdown

Similarly, CNBC reports China says its economy grew 6% in the third quarter, slower than expected

Worse Than It Looks

Funding Non-Productive Activity

Pettis objects to China’s GDP numbers based on “non-productive activity”.

By that measure, what about the US dropping bombs, fighting wars all over the word, keeping troops in Germany and Japan, and overpayment of government employees and their bloated pensions?

And that’s just for starters.

Source: Mish Talk

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